In the market for a new car? While this might not seem like a priority for most consumers at the moment, there may never be a better time in the future.
Rates are low and dealerships are nervous. That’s combining to some fantastic auto deals for those who are interested in purchasing a new car. While, as CNN says, buyers should proceed with caution, educated buyers may be able to get the deal of their dreams on a car that they love.
Here’s what you need to know.
0% Interest Loans Abound
Even before the pandemic, banks were slashing rates. Now, car companies are offering vehicle loans at 0% interest. That’s right: It costs no interest to purchase the car. There are even seven-year loans with 0% interest straight through. Even better, a lot of these cars don’t need to be paid for in the first four months or so. That being said, they may require relatively high credit scores to get the best deals.
There are also dealerships that are offering cash rebates for vehicles, which could ultimately end up being cheaper than the 0% interest loans. It’s important to do the math before you sign any paperwork at the dealership. You may also need to shop around from dealership to dealership too, because they aren’t offering these deals on all their vehicles. It’s usually specific models, and usually from their 2019 product.
Traditional advice doesn’t necessarily apply to these new loans. At a 0% loan, sometimes the minimum monthly payment (and longest terms possible) may be the smartest choice.
Shopping Around Online
Many car dealerships have had to change their model for cars, with showrooms shut down and employees interacting less hands on. But that’s actually a boon for most consumers. Most dealerships now have all their products online, in addition to an overview of their financing options. That means that consumers can compare cars and financing options from the comfort of their home rather than potentially getting pressured by sales tactics.
In fact, there are some dealerships that will do everything over the phone for you, and offer you curbside pickup to test out and pickup cars. Talking to your local dealerships and searching around online can give consumers a lot of negotiating power, even in a time when the rates and the loans are so favorable.
What to Consider When Getting a Loan
A 0% interest loan is a way to save thousands of dollars, potentially even tens of thousands of dollars depending on the term of the loan and the type of vehicle. But there are still some risks: Everyone needs to make sure that they’re purchasing a vehicle that they can afford, and that they’re still going to even want to have the vehicle within the next seven years.
If you’re in the market for a car, this is the perfect time to purchase one. Dealerships want to move their products, and they’re willing to forego a lot of profit to do so. The same standards in car dealership still applies: Make sure you negotiate, and don’t get too eager to make a deal. Purchasing a car during a pandemic is also a unique experience, and everyone involved should make sure they’re being careful when doing so.
