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Win-Win: Extremely Low Dealer APR Means You Get a Cheap Car Loan

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cheap car loan

2014 is the perfect time to get a cheap car loan.

If you’re planning on financing a new or used car sometime this year, you may want to listen up: Time Business & Money’s Martha C. White cites a new study that shows 2014 may very well be a perfect time to get a cheap car loan.

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The study, from, determines that car loans dropped considerably last year. Dealership APR for a number of brands—including Acura, Mazda, Kia, and Honda—were well below 1 percent. No automaker boasted a dealer APR of more than 4.9 percent (Fiat), and three brands—Hyundai, Nissan, and Subaru—had no dealer APR at all.

Of course, the rates are all contingent on different factors, including an assumed 36-month finance period and a 720 or better credit score. Regardless, car loans are nearing historic lows with average commercial bank APR around 4.5 percent (which is a long way from the 11.6 percent average of 24 years ago).

Where this plays to the advantage of car buyers: low rates mean more competition between manufacturers and lenders in order to earn your business. Not only will you get a cheap car loan out of it, but you also have the comfort of knowing that your bargaining power is greater than it’s been in decades.

So let us know: if you’ve gotten a cheap car loan in the last 12 months, what did you use it for, and how satisfied are you with the result?

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