Fed: Average Interest Rate Falls to 3.17 Percent

WASHINGTON — The Federal Reserve's latest Statistical Release shows the average interest rate for U.S. new-car purchases was only 3.17 percent in Feb. 2009, a steep decline from 8.23 percent the month before.

Interestingly, average term, loan-to-value and amount financed were relatively unchanged in comparison. Continuing a years-long downward trend, the average term for a new-car loan now sits at 59 months, nowhere near the 62.6-month average term in the first quarter of 2008. The average LTV held steady at 86 percent, while amount financed increased from $22,922 in January to $26,268 last month.

The expanded Statistical Release can be found here.