If you are looking to purchase an automobile, you will be surprised to know that making a purchase at the right time will also go a long way to save you funds. While festive times are known to be the ideal time to make an automobile purchase, the end of the year is another time to purchase a car.
There is a reason to this statement. The final weeks of December are unique to the car business. Not only is it the end of the month, but it is also the end of the quarter, as well as the end of the year. This means, manufactures will be looking to boost their sales numbers, while dealers will be working extra hard to meet their quotas. It is during this time of the year, you will get access to the best incentives, such as low APR financing and cash back rebates. And this is not only restricted to the new car, but also the used car.
Here are few reasons as to why the end of the year may be a great time for you to make a car purchase with a loan:
Lenders are approving fewer bad credit card loans: According to the latest auto reports, lenders are reducing the amount of car loan approvals, with subprime credit. In other words, even if your credit score is at an acceptable score, you may not get and the approval for a car loan you want. This is because, lenders are tightening up on bad credit card loans. They are approving fewer loans, while ensuring that they are more careful about how these loans are being structured, while following stricter credit standards. So if you have the ideal credit score, you have a higher chance of being approved for the loan. You can even use the car loan calculator to calculate how much of a loan you can expect with your current credit score.
Interest rates are on the rise in the next year: While lenders may be tightening up the loan structures, interest rates tend to go on the rise. Even a 0.25% increase will go a long way to increase your loan repayment. Anytime the interest rates rises, consumers can expect lenders to raise the rates and charge their customers accordingly. However, the silver lining about this fact, is that the interest rates normally rise after the new years has passed. Therefore, this an ideal warning for those who want to opt for a car loan, to opt for a loan now and lock in the rates that are low. You can even use the car loan calculator to your advantage and see how much of the loan rates can benefit you.