It can be a bit tricky to refinance an auto loan when you work for yourself. Many Americans today are enjoying the benefits and freedom that self-employment can bring. The Pew Research Center reports about 16 million Americans work for themselves -- that’s 10% of all jobs held in…
Each month, RateGenius asks auto refinance lenders and industry experts to see where they believe interest rates are headed.
This month (September 2019), 20 percent of experts asked believe auto refinance rates will rise over the next month or so; 60 percent think rates will fall; and 20 percent believe rates will remain relatively unchanged (plus or minus 2 basis points).
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This month, will rates go up, down or remain unchanged?
Read the comments and rate predictions of auto refinance experts and RateGenius analysts below.
25% say rates will go up
CEO of Crediful, Scottsdale, Arizona
The Fed has already announced that it does not intend to raise interest rates throughout the rest of 2019. Judging by this information and the overall trend of auto refinance rates, you can expect that they should remain relatively stable throughout August and September. If there is any change, it would follow the trend towards a slight increase. That said, rates are, and will likely remain in the near future, low by historical standards.
50% say rates will go down
Finance Expert, Wealthy Living Today, East Dennis, Massachusetts
The USA economic policy is in a zone of uncertainty with tariffs making an impact. The fed, fearing a recessionary trend, is likely to move rates down by one-quarter of 1% in September. In this event, it’s sure to ripple through to both mortgages and auto refinancing. Therefore refinance rates are likely to edge down, or at worst stay constant in September.
Senior Mortgage Loan Originator, Independent Bank, Dallas, Texas
With the Fed’s move to lower interest rates at the end of July, auto financing rates should decrease. Auto financing rates tend to follow the Prime Rate, which is the Federal Funds rate plus roughly 3%.
Corporate Finance, Holland & Hart LLP, Denver, Colorado
It is likely that interest rates for auto refinancing transactions will decrease this month following the Fed’s somewhat surprising decision to cut the federal funds rates. But don’t expect a substantial drop in auto refinancing rates – it is more likely to be a marginal decrease.
25% say rates will remain unchanged
Chief Lending Officer at RateGenius, Austin, Texas
Auto refinance rates will trend down slightly in response to market pressure of lowering rates. Financial institutions are still under pressure to achieve growth goals because new car loans, mortgage loans and business lending remain flat. Competition remains fierce as banks have taken back some consumer auto loan market share from credit unions in the used car indirect lending space.