Historically speaking, there may never have been a better time to purchase a new car than right now.
Not only are cars more advanced than ever before — with new technologies and reliable, fuel-saving drivetrains that can save drivers money — but they’re also available during a “perfect storm” of financial conditions that make it a great time to consider purchasing a new vehicle.
LOW INTEREST RATES
Everyone knows that interest rates can make a big difference over the life of a loan. A few short years ago, top-tier new car buyers may have had to pay 10-percent interest or even higher to purchase a new vehicle, while people with less-than-perfect credit would have to pay even more.
Today’s interest rates, though, are drastically lower than they were just three or four years ago. The financial crisis of 2008 caused central bankers to lower interest rates, and they’ve kept them near record lows ever since.
That means new car buyers can save thousands of dollars compared to what they would have paid before 2008. It makes new cars more affordable for more people, and it lowers monthly car payments for everyone.
Another reaction to the 2008 financial crisis was a tightening of lending standards. For a brief time, unless you had spotless or near-perfect credit, it was all but impossible to qualify for a car loan.
Fortunately, the auto financing world has returned to a more reasonable place since then. Car makers and banks reported making more loans to people with lower credit scores in 2012, and dealers are saying that it’s easy to find auto financing for people with all types of credit histories.
Between the historically low interest rates and more reasonable lending standards, now may be the perfect time to shop for a new car. There’s no way of knowing how long these current financial conditions could last.