Some of the nation’s biggest auto manufacturers are reporting impressive increases in sales over last year. GM reported sales are up 24.6% on core brands, but that’s nothing compared to Porsche’s gains. They saw sales increase 75% last month over July’s numbers last year. Customers with good credit are using auto loan calculators to figure out the payments on excellent loan offers, and many are taking advantage of great deals on cars.
The increase is largely credited to special incentives on auto loans. GM is offering 0% financing for up to 72 months on many of its models. Compared to standard financing rates, which currently range from 4.49% – 7.49%, the savings are really astounding. We used an auto loan calculator to work out the math.
On a $20,000 vehicle with a $4000 trade-in and $1500 down, GM’s dealer financing option would cost a buyer just $15,620 over six years, including sales tax of 7%. Compare that to a third-party car loan at 4.49% ($17,847) or 7.49% ($19,440) and the savings are drastic. You don’t have to use an auto loan calculator to figure out customers are saving big, but we calculated a savings of $2,227 – $3,820 overall on these deals. That’s equivalent to 15% – 20% off the total cost of buying a new car.
“The size and scope of the U.S. market demands a strong portfolio of well-targeted brands,” Don Johnson, VP of U.S. sales operations, said in a statement. “The success of Chevrolet, Buick, GMC, and Cadillac month in and month out, indicates that the new GM’s brand strategy is sound.”
GM is not alone in their success, however, as other US auto manufacturers are also doing well. According to the Associated Press, “Every major automaker except Ford and Daimler said U.S. sales of cars and trucks rose from June to July. The companies credited summer promotions and looser credit for the uptick.” Read the full article here.
Most car manufacturers are offering great financing deals, with 0% financing on many models, but the bargains don’t end there. AutoLoanDaily.com reports that lease incentives are also plentiful right now.