This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

It's a Great Time for Your Car Loan

Stocks in this article: EFX FICO RATE

NEW YORK ( TheStreet) -- The Federal Reserve's moves to drive down mortgage rates have produced a great side effect for U.S. consumers -- record-low rates on car loans, too.

"Auto-loan rates are the lowest we've ever seen," says Greg McBride of market watcher (RATE), which found that five-year new-car loans averaged 4.1% nationwide late last month. That's way below their long-term average of 7.5%.

McBride attributes today's attractive rates mostly to the Fed's quantitative-easing efforts, in which the central bank has bought up billions of dollars of U.S. Treasury bonds and mortgage-backed securities.

Fed members are trying primarily to push mortgage rates down and boost the U.S. housing sector, but their initiative has reduced auto-loan rates even more sharply. Some car loans charge less than 2.5% annual interest these days, well below the current 3.7% average for 30-year fixed-rate mortgages.

McBride says car loans are cheaper than mortgages because it's a lot easier to repossess a vehicle than foreclose on a home.

"If you miss more than one car payment, your vehicle won't be in the driveway in the morning," he says.

Here are five tips from McBride on how to get the best deals on car loans.

Check your credit
Start you car-shopping efforts by verifying the accuracy of information that credit bureaus Experian, Equifax (EFX) and TransUnion maintain on you.

Any errors can disqualify you from the best loans, so go to the industry's site and get the free copy of your credit reports that federal law entities you to once a year.

If you find mistakes, file a dispute with Experian Equifax or TransUnion.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs