(October 2, 2019) SANTA MONICA, Calif. — The average interest rate for a new-vehicle loan fell for the sixth month in a row and stayed under 6% for the third month in a row in September, according to the car shopping experts at Edmunds. The annual percentage rate (APR) on new financed vehicles averaged 5.7% in September, compared to 5.8% in September of 2018.

"Automakers are in full sell-down mode, which means that car shoppers got to take advantage of some decent promotional offers in September," said Jessica Caldwell, Edmunds' executive director of industry analysis.

"The cost of purchasing a new vehicle is still a lot higher than it was a few years ago, so it's a positive sign that automakers and dealers are making the right moves to keep buyers coming back into the fold."

Although average interest rates on new-vehicle loans have seen a decline in recent months, Edmunds experts say this drop is driven by incentives and is not indicative of a return to post-recession market conditions.

"Shoppers who are thinking about buying a new car may want to take advantage of the model-year sell-down over the next couple of months before the majority of these incentives dry up," said Caldwell.