Drop Everything and Buy a Car TODAY

If you’ve been thinking about buying a car, you might not see a better time than right now for a while to come. There are a couple of factors that have come together to make today the best time to buy, and the opportunity won’t last long.

Factor #1…

Cheap Car Loans

Everyone knows that car loan rates are credit dependent. If you have bad credit, car loans are more expensive – it’s the price to pay for rebuilding credit. But there is one other thing most car buyers don’t think about that can have a significant effect on your loan rate. That is the Federal Reserve interest rate.

Without going into too much detail, the Federal Reserve rate is the interest rate that banks and lending institutions pay when borrowing money. When the rate is low, their costs are low, and they can offer lower loan rates to consumers. And the rate has been low for several years.

In fact, since the Great Recession in 2008, the Fed rate has been close to 0%. This practically-free money has meant five-year used car loan rate as low as 2.81% nationwide. Prior to the financial crisis, those rates were around 8%.

That’s a significant difference. Getting a five-year, $20,000 car loan 2.81% , you’d be paying $358 per month, with a total of $1,461 in interest over the life of the loan. At 8%, your monthly payment goes up to $461 (over $100 per month more!) and total interest equals $4,332, an increase of almost $3,000!

The reason this is important is that the Federal Reserve plans to raise its rates next week. The Fed rate probably won’t go up by much but it is expected to have a somewhat significant effect on car loan rates. The lesson is, get your loan while money is cheap.

Now, Factor #2…

End of Year Quotas

Car dealerships have quotas to meet. The end of the calendar year usually means a big push to get their sales numbers as high as possible for the year.

How does that affect you? Well, in that big push, there are deals to be made. Salespeople might have financial incentives to finish the year strong. There could be hundreds or thousands of dollars of bonuses riding on making just a few more sales for the year. This is good news for you.

So December is a big month for deal making. If you find the right salesperson, there’s no telling what you might be able to negotiate on that new ride.

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Add these two factors together and you have the perfect storm for car buying. Don’t hesitate! You can get started right now by applying online.