Car finance

Car financing started with the General Motors Acceptance Corporation circa World War 1.

[1] The most common method of buying a car in the United States is borrowing the money and then paying it off in installments.

The dealer then typically sells or assigns that contract to a bank, credit union, or other financial institution.

[citation needed] These markups have been the focus of some regulatory scrutiny because they can cause variations in interest rates that are not correlated with credit risk.

[3] Dealer financing is an option automobile dealerships offer to customers purchasing a vehicle.

It is a significant source of profit for dealerships, with estimates suggesting that 78 percent of all cars are financed through this method.

Prime Rate floats about 3% above the Federal Funds Rate
Credit card interest rates
Auto loan interest rate 48 months new autos
Average new car interest rates
Auto financing companies
Average loan rate by credit score Q4 2022
New car