Lower Car Loan Interest Rates Make Cars Cheaper

Lower Car Loan Interest Rates Make Cars Cheaper
Buying a car has become much cheaper in the last year. There are three main reasons for this; cars are now designed and engineered to be cheaper to make; the interest rates has made financing a car cheaper and the financial crisis has forced car manufacturers to be more competitive with their pricing and finance deals.

If you have a steady income and great credit rating you could hardly find yourself in a better time to finance a new car for yourself. The only problem for most of us is actually getting that “steady income and great credit rating”.

However let’s taste the good news for a little longer. The Comerica Bank has recently published a report that details just how cheaper it is to buy a car now. For instance buying a new “average-priced” vehicle now takes 21.5 weeks of an average family’s income. This is a significant drop of 1.3 weeks from the prior quarter, especially when one takes into account that the median family income has also dropped.

The same source also found that the total cost of manufacturing and financing a new car dropped by $1,700 dollars to $26,000 in the last quarter.
Comerica Bank found that the total vehicle cost of buying and financing a new car fell more sharply than income, reflecting sharply falling interest rates on car loans. The total cost of buying an average-priced light vehicle fell to $26,000 in the first quarter, down $1,700 from the prior quarter.

What does this mean for us, the “average consumer”. Well it could mean a great opportunity or nothing at all. As incomes fall and job security plummets many families do not feel it is the time to shop for a new car regardless of the great deals to be found.

However if you do have some savings, have a relatively secure job and your credit rating is healthy you could get yourself the deal of a lifetime with record low car loan rates.
If this is your case you can further reduce the cost of buying a car with these simple tips.

Having great credit rating gives you amazing leverage when dealing with your car loan finance provider. You are precisely the customer they are looking for and it is you they are trying to attract with their low car loan interest rates. The best thing you can do is find your own finance before you even start looking for a car. Once you know what budget you have and you have found yourself a good interest rate, go shopping for your dream car. Do not discuss finance with the car dealer just get the best price you can on the car. Once the price is settled and not before ask what deal they can offer on the finance, tell them what deal you already have and ask if they can improve it.