Despite a long-awaited interest rate hike by the Federal Reserve last week, manufacturers’ financing arrangements remain largely unchanged. While there are still a variety of financial incentives available for new cars, trucks and SUVs, things could change quickly due to unprecedented market conditions.
As we reported earlier this month, the best 0% APR deals involve interest-free financing for up to 72 months on models like the 2022 Jeep Wagoneer. months are long gone, there are still ways to save if you know where to look.
Hyundai has some of the best finance deals right now with 0% APR for 48 months and no payments for 90 days on just about every model in its lineup. Even the all-new Santa Cruz pickup is eligible, a compelling alternative to the 2022 Ford Maverick, which can no longer be ordered.
The downside is that manufacturers have been quietly lowering their prices for months. For example, Nissan advertised 0% financing on nearly all vehicles, although closer examination revealed the deal was limited to just 36 months. The brand’s best interest rate rose to 0.9% in March.
Meanwhile, VW doesn’t even advertise low-interest financing and has resorted to standard rates. Currently, that means an interest rate of 3.36% for 60 months or 4.11% for 72. Even Kia finally raised rates earlier this month, limiting financing to 1.9% for 60 months. months to just 48 on some models.
Rental prices rose slowly, but not always in obvious ways. For example, Honda has slowly increased the amounts owed on signing cars and SUVs. In the case of a 2022 Civic LX, the effective monthly lease cost has increased by $37 since the car’s launch nearly a year ago.
That said, no one can predict with certainty what will happen on April 1 when the incentives change from most major brands. Given that more buyers are paying MSRP or more and there are fewer cars available, another reduction in transactions could be possible after the Fed’s rate hike.
Factors such as the global chip shortage and resulting supply chain issues, the Russian invasion of Ukraine and the resulting spike in gasoline prices may further push buyers likely to be on the market to buy or replace a car right now. Stay tuned for our continuing coverage of ways to find the best deals.
The best rental offers of the month