When there is a high demand for car loans, interest rates may increase due to higher demand. Lenders may raise rates to manage risk and capitalize on the increased demand. However, other factors, such as overall economic conditions, competition among lenders, and monetary policy, can also influence interest rates.
what happens to interest rates when there is a high demand for car loans
interest rates decrease to encourage borrowing
interest rates remain the same regardless of demand
interests rates may increase due to higher demand
interests rates are only affected by government policies
1 answer
1 answer