Labor Day Offers Great Deals on Auto Financing
The Labor Day holiday is right around the corner!
As one of the busiest car-buying times of the year, car dealers traditionally offer special deals over this holiday weekend, but auto-industry experts are predicting lower sales this year compared with 2015, which means that potential car buyers have more negotiating power with dealers, according to the 2016’s Labor Day Auto Financing Report released by the personal-finance website WalletHub.
The report compares auto-loan and auto-lease offers from a diverse group of more than 150 lenders to help prospective buyers find the best car deals.
Key Stats, based on WalletHub's report:
Interest Rates: For new cars, interest rates are at their lowest point in the past three years, with the average new-car loan today charging 17 percent less interest than the average used-car loan.
Credit Standing: Buyers with fair credit will end up spending about six times more to finance a vehicle — about $6,671 in additional interest payments over the life of a $20,000, five-year loan — than consumers with excellent credit.
Financing Sources: Consumers in the market for a new car should begin their search for financing with car manufacturers (rates at 51 percent below average) and credit unions (rates at 26 percent below average). View the complete report to learn more about financing -- currently averaging about 4.6 percent -- available directly from car manufacturers’ financing arms. Secondary options include national banks (rates at 1 percent below average) and regional banks (rates at 35 percent above average).
Transparency: Car manufacturers continue to lack transparency when it comes to leasing offers, with the average automaker receiving a WalletHub Transparency Score of 4.68 out of 10.
Before hitting the dealership, we recommend prospective car buyers review their free credit score to assess the types of rates they might qualify for and check out WalletHub's Car Payment Calculator to better understand what their car-loan payments and pay-off times might be.
And, to save time and money, shop for your Labor Day deal at the AskPatty Auto Buying Service, where you can research new and used vehicles and request a Guaranteed Savings Certificate from your Certified Dealer to get your negotiation-free Guaranteed Savings (available in most states) and streamline the buying process.
When you use the AskPatty Auto Buying Service, and purchase through a Program Dealer, you are eligible for Buyer's Bonus benefits at no additional cost. Learn more here!