There was a time when new cars were hard to afford. Just a couple of years ago, during the so-called credit crisis, banks tightened their lending standards and made it more difficult for anyone to get auto financing.
Well, the credit faucets are flowing once again, and lenders are lining up to offer buyers the chance to purchase a new car — often on very favorable terms.
Many people without perfect credit are able to get auto financing for their new vehicles once again, which helps turn the dream of driving a new car into reality. And, thanks to low interest rates and rebates offered on many models, it means buying a new car can be surprisingly affordable.
Consider the zero-percent car financing offered by some car companies. While they’re usually available for a limited time, and you’ll need good credit to qualify for them, they do give you the opportunity to drive a brand-new vehicle without paying a penny in interest charges. That’s a huge advantage.
And if zero-percent auto financing isn’t available for the car you want, today’s interest rates are still below the historical averages. If you can lock in rates while they’re low, you’ll be saving yourself a lot of money over time if interest rates rise in the future like many financial experts are expecting. That makes now a smart time to buy.
Rebates are another way car companies are “sweetening the deal” for buyers looking at new cars now. While some manufacturers reduced the rebates they offered buyers a few years ago, they’re starting to creep back up at many brands, which is a great thing for smart shoppers.
Finally, there are more auto financing options available today, including the ability to spread your car payments over as many as six years, which means lower monthly payments. These longer-term loans don’t make sense for everyone, but for people looking to save on their monthly payments, they can be helpful to make that new car fit your budget.
With everything combined — affordable interest rates, more available financing, and big rebates being offered — it makes now a great time to buy your dream car.