Time to Enjoy That New Car Smell
Now is a good time to buy a new car
Buying a new car can be stressful, so let us reduce that headache a bit by telling you that right now is a great time to do some shopping. This is especially true if you're like most people and plan to finance that new vehicle.
According to a study by WalletHub, the interest rates for new (and used) car loans are lower than they've been in three years. The study analyzed loans from 157 lenders across the nation and found that the average rate for a new car loan is 4.29 percent and 4.96 for a used car loan. But just because rates are low doesn't mean you should just accept the first quote you're given.
"People in the market for a new car should start their search for financing with the manufacturer," WalletHub rep Jill Gonzaleza told CNBC. "Car manufacturers are pumping out vehicles in record numbers and they're really pushing lower interest rates to stimulate sales." The numbers back up Gonzalez's suggestion. WalletHub's study found that the average loan from a car manufacturer is about 35 percent below the national average.
Of course now is not the time to shop for a car if you have bad credit. The low interest rates won't matter much at all. The report showed that those with fair credit will pay about four-and-a-half times more to finance a car than those with good credit. On a five-year, $20,000 loan, that adds an additional $5,500.
This Article was written by Chris O'Shea for SavvyMoney®.