Auto sales in March were up nearly 25% versus one year ago. General Motors sold enough cars to reclaim it’s title as the No 1 automaker. All these improvements could signal the curtain call for incentives and discounted loan offers.

Perhaps not all bets are off for a cheap car loan this summer – although Toyota broke it’s own record in March for 0% loans, it’s sales were only up 4%. Perhaps we can expect Toyota to offer discounts for the rest of summer in order to gain back customers and reputation after it’s massive recalls.

If you are in the market for a new or used vehicle, auto loan rates may be ready to start ticking up, start thinking about pulling the trigger.

Auto loan rates continue their decline and auto sales increase. December is expected to be the highest volume car sales month since the cash for clunkers program ended.

Why are rates so low despite a 50% increase in foreclosures last year? Currently the government is guaranteeing these loan instruments to large private banks. If you don’t pay, the investors don’t lose their money, the government has given them a fail safe plan.

The bad news is this TALF, the government program that insures the auto loans to investors, ends in March. The program, launched in March 2009, stabilized the auto loan securities market that was on the verge of collapse. This has given the private banks almost a year of insured lending, allowing them to lend money cheaper. Once the program ends, it’s likely interest rates will go through the ceiling.