Edmunds Finds Fewer Finance Deals

By Staff Writer September 05, 2018

Zero-percent finance deals were more elusive than expected for car shoppers in August, according Edmunds.

The percentage of sales with zero percent finance deals has been cut in half in the last two years — dropping from 14.6 percent of transactions in August 2016 to only 7.4 percent this August. This continues a trend that started last year, when only 10.4 percent of August auto sales had zero percent financing.

This is unusual for this time of year, given that zero percent finance deals typically peak in August and September.

Edmunds analysts note that higher interest rates continued to contribute toward the scarcity of zero percent finance deals in August. The annual percentage rate (APR) on new financed vehicles averaged 5.8 percent in August compared to 4.9 percent in August 2017 and 3.9 percent in August 2013.

Inventory levels have also hit a record low not seen since 2016, which Edmunds experts say is creating less of a need for automakers and dealers to pile on costlier incentives.

Last modified on Wednesday, 05 September 2018 13:36

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