When buying a new car, a great financing deal is more important than the sticker price on the car's windshield. A great financing plan will have a low interest rate with an affordable monthly payment. You won't need to struggle to make your payment each month, but you won't pay so little that you end up paying thousands more on the cost of your vehicle. Most major automakers offer promotional new car financing offers to encourage people to get behind the wheel. That said, you don't have to settle on the dealership's financing offers -- you can get new car financing offers from banks, credit unions and other sources. Cars Direct and MyAutoLoan help match buyers with lenders and work to find the best rates available. U.S. Bank offers low-interest rates, and LightStream has great options for people with great credit scores. Capital One offers several noteworthy financing deals and even has options for those with bad credit. Read on to learn more about new car financing deals.
Both dealerships and banks offer great deals on new car financing. It is always better to get pre-approval from a bank that can be used to compare with what the dealer offers. New car buyers with excellent credit can find loans for as low as 1.99% APR.
Summer is undoubtedly the best time to secure cheap financing on a new car. Dealers are looking to move inventory in order to make room for the next year's merchandise. Most dealers will offer 0% financing deals during the summer months.
When dealers are looking to move a lot of product, especially during the summer months, they will offer both 0% or low-interest financing as well as cash back. If more cash back is offered in return for a higher interest rate it makes more sense to take the lower cash back amount and the 0% or low-interest rate financing.
Capital One has joined the car lending market and is currently offering some of the lowest rates. They offer even lower interest rates and some flexible payment options to their existing credit card customers as well.
Dealer financing is convenient and has the added bonus of additional rebates and incentives. Before deciding to go with the dealer shop around to find other new car financing deals to compare.
Edmunds has a very comprehensive website that organizes deals, rebates, and incentives by location and car make and model. This site helps to locate the best deals all in my place with a click of the mouse.
Current rates can be as low as 1.99%APR for those with exceptional credit while the average is a still very low 3%. Bankrate lists rates for many different lenders on their site as well as what the current APR is by region.
Cadillac, Chrysler, Ford and Jeep currently have 0% financing available as well as cash back offers. Depending on the region of the country, cash back can range from $1,000 to $5,000. Jeep's offer is for 7 years which is a longer term than average.