Especially between the last quarter of 2018 and the first quarter of 2019, vehicle loan interest rates showed an incredible rise.
This situation naturally affected the automotive industry negatively. Because consumers who had to repay twice as much as the credit received, reduced the demand for loan applications. These rates are valid for June 2019 and vary from bank to bank. It is obvious how much interest rates increased last year.
The same is true for second-hand car loans. You will see interest rates between 1.65% and 2.99% in the loan you will receive for a 40,000 dollars zero mileage vehicle with a 60-month maturity option.
Vehicle loan interest calculation
You can also make this calculation on your own. The amount of loan you want to buy, the condition of the vehicle (zero kilometers or second hand) and the number of maturities you choose will be sufficient to calculate the vehicle loan interest rates. Let’s explain with an example.
You preferred the number of terms to be 60 months. Let’s calculate the lowest interest rate of 1.66%. You can learn this calculation formula by changing the loan amount and maturity number. As this data changes, the number of installments you need to pay monthly changes.You wanted to buy a vehicle with zero kilometers and applied for a 40,000 dollars loan. The annual cost rate is 27.03% and your monthly installment payment is determined as 1,148 dollars.
Do car loan interests fall?
Government officials and financial authorities are predicting a drop in vehicle loan interest rates for 3 months ahead of us, in the last quarter of 2019.
However, it is not yet clear how to do this in these economic data. If you want to buy a vehicle by taking out a loan, you can expect this 3-month period. This is entirely up to you. Perhaps there will be no change in interest rates, and on the contrary, there may be a further increase. If you appreciate, the forecasted financial data often do not reflect the truth. One thing is real, it is the extraordinary stagnation in the automotive industry and this has been going on for a long time. We will see this all together in the future.
Vehicle loan maturity limit
With the new law, changes have been made in the number of installments of loans and in the number of installments made with some credit card purchases. Although vehicle loan interest rates are still in place, the maturity is extended to 60 months. Thus, you will be able to pay the vehicle loan you will receive for 5 years. Will the number of vehicle loan maturities extended up to 60 months revives the sector somewhat, we will see this over time.
However, we do not think that extending the number of maturities will affect much in this market where purchasing power has decreased significantly. Because as the number of maturities increased, there were also changes in monthly installments.In other words, the money from the pocket of the citizen has increased a little more.