(WTNH) — WalletHub announced the second-quarter installment of their 2016 Auto Financing Report as Memorial Day inches closer and closer, so does the busiest car-buying day of the year. With new car sales expected to rise for the seventh year in a row.
According to WalletHub potential car buyers need to find the best deals, the companies analysts compared auto-loans and lease offers from a group of over 150 lenders.
WalletHub says there are four things prospective car buyers need to do when finding the best deals:
- 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.
- 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.
- : 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).
- 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, we recommend 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.
For more information on buying a car during Memorial Day click here.