Falling LIBOR could help car loan rates
30 June 2009
The three-month sterling LIBOR rate (London Inter-Bank Offered Rate) fell to 1.200% this week, raising hopes that car loans and other forms of credit could become cheaper.
It means the rate has fallen from 1.25% to 1.2% in just a week. According to Thisismoney.co.uk, the rate had shown signs of stabilising at 1.25% in mid-June, but then began falling again, possibly due to the effects of quantitative easing.
LIBOR measures the average rate at which banks lend between each other. It is used to set interest rates on many forms of credit.
A spokesperson for Think Cars said: "The LIBOR rate is an important figure for the loans market. When LIBOR falls, lenders may have more room to cut loan rates.
"The current economic conditions make buying a car a big decision, but cheaper car loan rates could make a big difference to the overall cost. For anyone looking to buy a car on finance, we recommend speaking to an expert car finance adviser, who could help them to find the best deal."
---
Think Cars take the effort out of finding the best car finance deal. For a free, no-obligation quote and a decision within the hour, contact one of our expert loans advisers today.
Fill in our form for your free loan quote
Tags: car finance, car loans, car loan rates, car finance rates, car loan interest rates, loan rates, car, cars