Manufacturers are expected to continue aggressive discounting to help move cars off the lot. The average dealer incentive is $3,805, up from $3,645 last August, according to J.D. Power.
In addition to dealers making room for 2018 models, continuing low interest rates also could help drive sales. Of course, the interest rates offered vary depending on the buyer’s credit score and the source of the loan.
For people with great credit, the terms offered by the financing arm of a manufacturer generally trump other lenders. WalletHub data shows that the average interest rate for a five-year, $20,000 loan from a car manufacturer is 1.74 percent. In comparison, credit unions offer an average 2.48 percent interest rate; small and community banks, 4.07 percent.
“Some people think they can get the best rate at their credit union or a bank, but that’s pretty much never the case, especially if you have good or excellent credit,” Gonzalez said.