@marty56 wrote:
IMHO autoloan rates are lessvolatile than mortgage rates so I would not expect to see too much change.
I agree.
I mean we are not talking a 15 point variance, it would make cars too expensive. Then no one is buying and banks start losing the ability to lend.
What people forget is that money/loans/interest is essentialy a commodity. interest rates change daily.
I have been a member of banks that post daily rates, others that post weekly.
Invariably when you see a bank/institution post/say "Rates as low as" 3.99% the number/factors that determine who qualifies for that rate or the next tiers change daily.
On Monday you could apply and get 3.99% on Tuesday had you applied you might get 4.23% The 3.99 still "exists" just who gets it and who gets higher changes. (until the institution finally decides to change out to rates as low as X.XX%)
Will you see 0% or .9% go away?
Probably not as those rate are artificial or "subvented" and are marketing rates to get people to buy. You might see the term change or score change for who qualifies.
Banks send dealerships their "current" rate sheets via email or fax weekly or monthly- those are good rule of thumb tools but there is nothing stopping a bank from changing rates for tiers at any time.
Could the change mean that today you could get a 5.99% but in December you might suddenly get 6.25%- possibly, but remember on $20,000 over 5 years the interest rate varience of 1% is less than $10.00 on your payment.
ETA:
And remember if car loans suddenly jump to 11%, with the internet and the ability to shop around there will be strong competitive forces in play. Back in 1970 it was unheard of to ask a bank 5 states away if they would fund you, so I think you may see an increase, but market forces will limit that.
