Find the Best Car Deals Near You ⤵

Record Low Interest Rates on Car Loans

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.






3 Steps Every Car Buyer Needs to Take to Save Maximum Money

The key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:

Step 1 Get Prices From My Trusted Network

Select the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Select Vehicle to Get Local Pricing

Step 2 Get Prices From TrueCar / CarsDirect

TrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.

Step 3 Complete my Checklist

Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- 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...


(Absolutely NO SPAM, easy to unsubscribe)
×

About The Author

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

May 2022

April 2022

I welcome your car buying questions. Email Me and I'll be glad to answer them!





Your Zip Code:
processing...