November Auto Loan Interest Rates Hit 21-Month Low
Edmunds analysts say Black Friday promotions helped suppress new auto loan interest rates last month, registering a year-to-date low of 5.5% and an 8.3% year-over-year decline.

Edmunds’ Jessica Caldwell predicted year-end purchases of large trucks such as the Toyota Tundra — and higher trim levels in every category — will push average transaction prices higher as interest rates decline.
Photo courtesy Toyota Motor Sales USA
SANTA MONICA, Calif. — The average interest rate for a new vehicle loan dropped to its lowest level of 2019 — and lowest level seen since February 2018 — in November, according to the car shopping experts at Edmunds.
Read: November Sales Report Pushes 2019 Total Closer to 17M
The annual percentage rate on new financed vehicles averaged 5.5% in November, compared to 5.7% in October and 6% in November of 2018. Edmunds data reveals that 21.8% of shoppers who financed their vehicle purchases in November 2019 got an interest rate below 3%, compared to 18.6% of those who financed purchases in November 2018.
“Auto loan interest rates still aren’t as low as they were a few years ago, but it’s encouraging to see that shoppers are landing more attractive financing offers.”
“Shoppers who made it out to the dealership this November got to take advantage of some of the biggest bargains all year thanks to a combination of Black Friday and model-year selldown promotions,” said Jessica Caldwell, executive director of insights at Edmunds. “Auto loan interest rates still aren’t as low as they were a few years ago, but it’s encouraging to see that shoppers are landing more attractive financing offers as rates continue to trend downward.”
While interest rates declined, Edmunds experts note that new vehicle prices continued to rise in November. Edmunds data reveals that the average transaction price for a new vehicle climbed to an all-time high of $37,981 in November 2019, compared to $37,188 last year and $33,282 five years ago.
“We typically see a lift in large truck and luxury vehicle purchases at this time of year, but these rising vehicle prices are also a reflection of car shoppers opting for bigger vehicles with more options across the board,” said Caldwell.
Read: Discounts, Incentives Stabilize New Vehicle Prices in November
Originally posted on F&I and Showroom
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →