The National Association of Realtors (NAIR) is urging consumers to look at auto loan companies before deciding which loan to use, after some lenders began selling the same product at lower rates.
NAIR, a trade group for more than 25,000 of the nation’s largest lenders, said in a statement that the higher auto loan rate may have been a result of increased competition in the auto loan market.
The NAIR report said the higher rates are typically a result, in part, of the increased number of lenders offering auto loans, as well as increased competition among lenders.
The NAIS is calling on consumers to review all loan offers offered by companies that offer auto loans and to contact each company’s lender to get a clear picture of how their products compare.
It also recommends consumers contact each lender individually to determine whether the rates are fair.NAIR said the NAIR study shows that the best loans are the ones that offer a reasonable amount of auto loan financing, which it calls “real-world consumer demand.”
“Real-world demand” is the result of people paying interest rates on their loans that are lower than what banks charge for credit cards or mortgages, the NAIS said.
“For consumers who can afford it, there are no other options.”NAIR has also released a new consumer loan calculator that provides a general idea of how much you could save by using a vehicle financing option.
The calculator shows how much the average monthly payment would be for a standard vehicle loan, which is the most commonly used type of auto financing.
The median payment for a vehicle loan is $2,000, according to the calculator.
The calculator also shows that an average vehicle loan pays interest of 0.1% a month, with a maximum loan term of 18 months.
The median payment is $1,400 for a conventional loan, and $1.25 million for a car loan.NAI also released data from the auto lending industry showing that auto loans account for less than one-quarter of all auto loan originations.
The auto lending market is in its early stages, but it is growing, according the NAI.
The average number of loan applications per month for all loans, which includes traditional auto loans as well, is about 2.5, according NAI data.