Edmunds.com reports that the average automobile finance rate dropped to 4.4 percent in March... In March 2009, the average interest rate for the industry was 5.8 percent. What does that mean for those with bad credit?

Bad Credit Loans are also affected... Since rates are lower across the board, those with bad credit in Chicago could get lower interest rates... Think about the overall portfolio of a lending institution. Banks need a good mix of good and bad credit. Sub-Prime loans for the most part are the most profitable but have the highest risk. Prime loans have the least profit and lowest profit but usually are not kept for the duration of the contract. Bottom line is that banks and lending institutions want the Bad Credit Loans because of their overall profit but want to somehow lower the risk. To do this, banks would then turn around to compete with other lenders for your business by offering a lower interest rate to consumers with bad credit.

"Low interest financing is compelling for consumers because those who qualify often enjoy greater savings than they would get from a cash-back offer," said Jessica Caldwell, Senior Analyst for Edmunds.com. "Low APR offers are also better for automakers, because they are less damaging to brand image and residual values."