Key takeaways The Federal Open Market Committee (FOMC) sets the benchmark rate, which impacts the rates auto lenders set. When the federal funds rate fluctuates, so will the cost to finance a vehicle. The Fed increased the benchmark rate 11 times between 2022 and 2023, and the central bank has cut its rate three times to date in 2025. While auto loan rates have begun to decrease, it will likely take several rate cuts before borrowers see significantly lower rates. Over the past two years, Americ ...