Automakers Who Offer Zero Percent Auto Financing Rate
Auto loans rates have been getting lower from the onset of the financial crisis. A 60 month auto loan is around 6.98 percent interest while a 36 month used car loan hovers around 7.75 percent. However, interest rates on auto loan are creeping up as the auto market seems to be picking up steam.
According to Edmunds, an online auto research company, sales for SUVs and big trucks are on the rise, after almost a decade of slow sales as a result of high price of gasoline which lead to a shift in the auto market to fuel efficient cars.
Among some of the auto models that have seen huge increase in sales are Toyota Camry, Honda Accord, Hyundai Sonta and Ford Fusion. Ford, after years of declining sales are reporting record orders for its vehicles.
After a couple years of financial uneasiness in the market, financing is getting easier and auto manufacturers and dealers are offering rates as low as zero percent financing on auto loans for qualified buyers. In addition, banks like Citi, Bank of America, Regions and even local banks are selling auto loans at rates not seen since 2006.
Chrysler is offering zero percent loans on its Chrysler, Jeep, Dodge and Ram trucks with the exception of the Dodge Challenger, Ram 2500 and Ram 35000. But even these models are being offered at an excitingly low rate of 1.59 percent.
Chrysler Jeep 2010 Model
Ford has also match Chrysler to offer zero percent on all of its Ford and Lincoln Mercury models with the exception of hyrids and a few other models such as the Taurus SE and Ford F-150.
GM is also offering zero percent auto loan on Silverado, Traverse, Malibu, Acadia and Sierra models. In addition General Motors has a rate of 2 percent loan on many of its other models including Cadillac and CTS.
Toyota, creeping out of its notorious recall, has a starting rate of zero percent interest on its Avalon, Highland, Matrix and RAVS cars.
Other foreign car maker are also introducing low to zero percent financing. Honda is offering a 0.9 percent loan rate on most of its Sedan vehicles and 1.9 auto loan rate on its Odyssey and Ridgeline.
Why You Should Buy Now
These zero percent auto loan rate are not for ever. Researchers belief that as the market improves interest rate will go up and deals such as these will slowly dwindle. An auto loan with zero interest compared with one of, say, 7 percent rate can result in a vast difference in payment.
A few years ago, auto buyers with bad or less than good credit would have to pay high interest rates or would have to seek a co-signer to get a loan. Today, credit is much more readily given. Car buyers with credit score as low as 450 are getting good deals on auto loan. Now is the time to buy a car
