Overhaulin'

Will the new interest rate cut make it easier to get a car loan?

It was lowered to 1.00% today. What % will it make car loans?

Public Comments

1. no fed funds rates are the rates charged for interbank overnight cash to comply with regulations for bank capitalization. funds used to make car loans are usually made from deposits the institution attracts - the loan rates they are able to lend at are a function of how much money it costs them to attract core deposits plus the margin required to pay the bills plus their profit margin.
2. It should really save you some money to just get an auto loan price on the web to verify what todays rates are. You might be pleasantly happy. Also if your credit is not so great, a lot of them are more willing to work with people. What I always tell friends is that an internet quote at http://auto.lowratetoday.com is worthwhile.
3. Easier, no. Cheaper, Yes. Interest rates for car loans vary, depending on the year of the car, your credit history, and the amount of money being financed in conjuction with the vehicles book value. The feds cut the rate today by half a point. So figure that you can get a half a point better on the rate.
4. Sorry, no. In fact, it probably won't make much if any difference in car loan rates, or even home mortgage rates. Rates are about the same now as a year or two years ago before all the recent rate cuts by the government. It more affects wholesale and interbank rates, and rates you receive on savings accounts and CDs -- but not so much on loans and credit card rates.