Kicking the Tires and Checking Interest Rates

Record loan rates good for the car lot

Sandy Silvers is looking for a used car.  But she is also looking for a good interest rate.

"It brings down the monthly payments," said Silvers. Sandy is in luck, interest rates for car loans are at some record lows.

Car shoppers with good credit are finding interest rates below 2 percent for new cars, under 4 percent for used cars. Those low rates are having an impact on the car lot.

"It's an added incentive which brings more people out," said car salesman J.P. Bo with Pacific Honda.  Not only are low interest rates allowing people to get into higher end cars but some are even keeping down their montly rates by extending their loans up to 6 and 7 years.

Jeff Stone with North Island Credit Union in San Diego says they did close to $60 million in car loans last year.  Some of that is for members buying new and used cars.  But Stone says some of it is coming from people refinancing their old car loans.

"If you are paying somewhere in the 4% or 5% range and you have good credit, you should be looking to refinance that car," said Stone.

People looking for auto loan refinancing should start by calling the bank or credit union that has the original loan.

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