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What the Fed’s Interest Rate Hike Means for Car Loans

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A move by the Federal Reserve late last year to slightly raise interest rates shouldn’t be a reason for potential car buyers to rush out and buy because they’re worried car loan rates will rise.

That’s the good news, lending experts say, especially at a time when car loans are so cheap: Five-year loans cost less than 2.5 percent for a new car and around 2.75 percent for a used car, according to recent figures from Bank of America.