Will you be shopping for a car at Memorial Day sales?
May 22, 2015
Source: WalletHub
With interest rates and gas prices low and the average vehicle being more than 11 years old, some consumers may be looking for a bargain during this year’s Memorial Day sales.
In order to help consumers find the best deals in financing, WalletHub has released the latest installment of its 2015 Auto Financing Report. It analyzes auto loan and lease offers from more than 150 companies and financial institutions offering the loans.
Among its findings:
- Interest rates for new cars are at the lowest point in three years, with the average new car loan now charging 17 percent less interest than the average used car loan.
- Overall, buyers who have fair credit will end up spending about four-and-a-half times more to finance a vehicle than someone with excellent credit, which equates to about $5,300 in additional interest payments over the life of a $20,000, five-year loan.
- People in the market for a new car should start their search for financing with car manufacturers, rates 49 percent below average, and credit unions, 23 percent below average. National banks,10 percent above average, and regional banks, 43 percent above average, should be secondary options.
- Car manufacturers continue to lack transparency when it comes to leasing offers, with the average a WalletHub Transparency Score of 3 9/10 out of 10.
- Toyota, Volkswagen, Kia, Ford, Dodge, Nissan, and Cadillac offer the lowest financing rates of the major car manufacturers surveyed. Volvo, Audi, Ford, and Toyota have the best leasing offers
To read the report, visit: http://wallethub.com/edu/2015-auto-financing-report/10131/.
Copyright 2015, Rita R. Robison, Consumer Specialist
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