How Inflation Impacts Auto Loan Rates
How inflation impacts auto loan rates in the US—Fed and lender rates rise when inflation is high so you see why rates move.
Inflation in the U.S. impacts auto loan rates because the Fed raises rates to fight inflation—and lenders pass that through, so auto loan APRs rise when inflation is high. Here's how inflation impacts auto loan rates.
TL;DR High inflation = Fed raises rates = lenders raise auto loan APRs. When inflation drops, Fed may cut rates and APRs may fall. Shop for the best rate when you buy; consider refinancing if rates drop later. Use autopremo.com payment calculator and refinance calculator. Use autopremo.com.Why Rates Rise With Inflation
Fed raises short-term rates to cool inflation. Lenders fund auto loans at higher cost, so they raise APRs. When you see "rates are high," inflation and Fed policy are often the cause. Use autopremo.com payment calculator to see payment at current rates. Get your numbers at autopremo.com.
What You Can Do
Shop multiple lenders to get the best APR for your credit. Agree on OTD first so you're not stretching term to "fit" payment. If rates drop after you buy, consider refinancing with autopremo.com refinance calculator. See payment at autopremo.com.
Bottom Line
Inflation impacts auto loan rates—Fed and lenders raise APRs when inflation is high. Shop for the best rate; use autopremo.com payment calculator and refinance calculator so you see cost and options.