Due to the Federal reserve cutting interest rates last month for the first time since 2009, one of the many sectors of the economy that’s sure to be affected is automotive. For drivers looking to trade in an old jalopy or buy a new car with all the bells and whistles, this could be the time. And, of course, credit unions can offer competitive rates whether these buyers are looking for new loans or looking to refinance existing loans with better rates.
Lower rates will be a nice reprieve for borrowers and a good opportunity for lenders. According to Business Insider, “In the fourth quarter of 2018, auto loan interest rates hit a 10-year high at an average rate of 6.3%, reported Business Insider’s Rachel Premack. While the rate cut will have no effect on existing loans, it might be a better time to look around and refinance your auto loan if you’re feeling like your interest rate is too high.”
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