Memorial Day is one of the busiest car-buying days of the year and new-auto sales are expected to rise for the seventh year in a row. This is according to the personal-finance website, WalletHub, who has released the second-quarter installment of its 2016 Auto Financing Report.
To help prospective car buyers find the best card deals, WalletHub’s analysts compared auto-loan and -lease offers from a diverse group of more than 150 lenders.
Key Stats:
- 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 $6,304 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 38 percent below average) and credit unions (rates at 29 percent below average). Secondary options include national banks (rates at 2 percent above average) and regional banks (rates at 30 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, WalletHub recommends that prospective car buyers review their free credit score to assess the types of rates they stand to qualify for and leverage a Car Payment Calculator to determine their car-loan payments and pay-off times.
Video courtesy: Audi Coral Springs (SouthFloridaReporter.com Sponsor)
[vc_btn title=”More on Auto Financing Report” style=”outline” color=”primary” size=”lg” align=”left” link=”url:https%3A%2F%2Fwallethub.com%2Fedu%2Fauto-financing-report%2F10131%2F|title:More%20on%20Auto%20Financing%20Report|target:%20_blank”] [vc_message message_box_style=”3d” message_box_color=”turquoise”]By John S Kiernan For a WalletHub News Release for SouthFloridaReporter.com May 27, 2016 [/vc_message]
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