The Labor Day holiday signals the start of several things, including school, football and it used to be the time that new model year vehicles became available.
That’s not entirely true now, but plenty of folks start looking for deals on last model year’s vehicles around this time. Fortunately for buyers, 2019 has been a slow year for automakers and there are some deals to be had.
“Labor Day marks the end of summer, and dealers are anxious to get leftover 2019 models off their lots before the 2020s hit,” said Jamie Page Deaton, executive editor of U.S. News Best Cars.
“We’re seeing an incredible number of no-interest financing deals – which can significantly lower monthly payments and save you thousands.”
Here are some of the deals that U.S. News found on new vehicles:
- 2019 Chevrolet Equinox: Purchase Deal: 0% financing for 60 months
- 2019 Toyota Sienna: Purchase Deal: 0% financing for 60 months
- 2019 Jeep Grand Cherokee:Purchase Deal: 0% financing for 72 months
- 2019 Hyundai Kona: Purchase Deal: 0% financing for 60 months
- 2019 Ford Mustang: Purchase Deal: 0% financing for 36 months
- 2019 Nissan Rogue: Purchase Deal: 0% financing for 36 months
- 2019 Subaru Outback: Purchase Deal: 0% financing for a limited term
- 2019 Kia Stinger: Purchase Deal: 0% financing for 75 months
- 2019 Ford Expedition: Purchase Deal: 0% financing for 60 months
The zero-percent financing options are the key. For most of this year, those deals haven’t been available, but lenders looking for a way to drive sales, they’ve been dropping interest rates during the last three months.
Although experts believe that we’ve seen the last of the interest rate cuts on auto loans, the rise of zero-percent loans is designed to get buyers into dealership showrooms. They’re also looking for less-than-perfect buyers as well.
Two additional reports reveal automotive lenders are easing restrictions on securing a loan in general for buyers with lowest tier of “prime” lenders as well as subprime buyers.
Within the total for the second quarter of 2019, originations for customers with credit scores below 620 rose 1.6% from a year ago. The New York Fed considers 620 the cutoff for subprime. Originations increased 4.3% for the credit score range of 620 to 659. The biggest year-over-year quarterly increase was in the range of 720 to 759, up 5.6%.
According to Equifax, 1.39 million auto loans have been originated YTD to consumers with a credit score below 620. This is a 1% decrease from March 2018. These newly issued loans have a corresponding total balance of $25.5 billion, a 2.4% increase year-over-year.