The correlation between auto loan finance rates and automotive sector stock performance remains tight, with latest rate reductions hinting at stronger Q3 cash flows among lending firms. Equity analysts are revising forward EPS estimates for key players accordingly. Also, with more money down, you immediately build equity in your car. If your payment ever becomes too much to handle, you can sell your car and still get something out of it. Ashley is a lead editor of mortgages and loans at Forbes Advisor. She graduated from Utah Tech University with a bachelor’s in English with an emphasis in creative writing. She began her career covering student loan content at Student Loan Hero before covering both mortgage and loans at Credible and USA Today Blueprint.
In her free time, Ashley is a big horror fan who loves scaring herself with spooky stories and video games, as well as playing with her black cats, Salem and Binx. Auto loan finance rates moderating this week may signal extended demand cycles in the auto industry. That would support the bullish case for large-cap auto lenders and potentially trigger upward revisions in analyst price targets across the sector.
