RealCarTips Logo

Record Low Interest Rates on Car Loans

April 22, 2010

0% financingThe cost of financing a car has hit a record low according to Edmunds.com. The average interest rate on car loans last month was only 4.4%. This is down from 5.8% just a year ago.

While this may not seem like a big drop, the typical car buyers is actually saving over $1,000 in financing costs compared to last year.

We can thank Toyota for starting the incentives war after they introduced 0% financing following their recall fiasco. Although Toyota has scaled back their incentives to certain regions, other car makers have picked up the slack.

GM, Ford, Nissan, Chrysler, Mazda, Suzuki and Saab all offer 0% financing on some of their models. Even Porsche is offering 1.9% financing on all models except the Panamera.

Banks and credit unions have also become more competitive with their car loans. Last year, it was very difficult to get financing even if you had great credit. Now, many car buyers can secure financing without having to pay outrageous interest rates.

One word of caution: Don't assume you automatically qualify for the low-rate financing offered by the car manufacturers. Many still require you to have great credit. Nothing is worse than going to a dealership thinking you're getting a low interest rate only to discover you don't qualify.

Always have a backup plan and make sure you secure financing before going to a dealership. Securing financing doesn't mean you have to use it. The dealer will usually try to offer a better rate than what you already have.


My Recommendation for Car Shoppers

TrueCar, Edmunds, and 1-800 Car Show are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.

New York Tri-State Residents - Important:

There is a new car leasing service called Carvoy, available to NY tri-state area residents, which I recommend you try - especially if you hate the stress of haggling with car dealerships. Carvoy provides pre-negotiated lease deals, calculated with taxes and all fees incuded so you know exactly what it will cost. Here is my list of Best Carvoy deals, updated each month.

- Gregg Fidan

Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
  • Best Rebates, Incentives, and Lease Deals
  • Latest Car Buying Scams and Tricks
  • The Best & Worst Time to Buy a Car
  • Which Cars You Should Avoid
Enter Your Email Below

(Absolutely NO SPAM, easy to unsubscribe)
×

Gregg Fidan

About: Gregg Fidan


Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.

Latest Weekly Car Buying Tips    RSS Feed

September 27, 2018
September 20, 2018
September 13, 2018
September 6, 2018
August 30, 2018
August 23, 2018
August 16, 2018
August 9, 2018
August 2, 2018
July 26, 2018
July 19, 2018
July 12, 2018
July 5, 2018
June 28, 2018
June 21, 2018
June 14, 2018
June 7, 2018
May 31, 2018
May 24, 2018
May 17, 2018
May 10, 2018
May 3, 2018
I welcome your car buying questions. Email Me and I'll be glad to answer them!