Consumer credit decreased at an annual rate of 1.7 percent in August, according to the Federal Reserve’s monthly report.

Non-revolving credit, which includes auto loans, rose at an annual rate of 1.2 percent in August. Revolving credit fell for the second consecutive month at an annual rate of 7.2 percent.

Interest rates on new-vehicle loans dropped to 3.86 percent in August, down from 3.87 percent in July and 4.02 percent in June.

Loan terms remained stable month to month at 63.7 months. This was slightly above the 63.1 months recorded in June.

The loan-to-value ratio on new-car loans remained steady for the third consecutive month at 87 percent and mirrored the average ratio recorded in the second quarter of 2010.

Amount financed fell to $28,144 in August, down from $28,377 in July, but up $164 from June’s $27,980.