Looking at 2012 cars with almost no interest rates that are good until end of July. I may need to buy at the end of August. Will there be any incentives to purchase a 2012 model then? In other words, do car dealerships have secret agendas? Of course the interest rates are good now so they can get the 2012 off the lot soon for the 2013s. Will I do as well purchasing in august??? Specifically Mazda and maybe Honda, Nissan, or Toyota.
Depends on the model you’re looking at. If you checking out a CX-7, which is being discontinued, you might still be able to get a low/no interest rate loan. If you are looking at a CX-5(do they even have a '12 model?) good luck with that, they’re selling them as fast as they can make them.
What models are ou looking at, specifically?
The selection of leftover '12’s will mean less choice for you since production of '13’s means no more '12’s are coming into the dealerships. You will be looking at the less popular colors and models that are offered with higher incentives. August incentives will be the same or better, but popular models and colors will be scarce.
Incentives are determined by the factory. It is likely that any incentives that are in effect now will continue until the last of the 2012s are sold. But you never know. Honda’s low rate financing goes through Labor Day. If you can swing it now, the rates are near zero.
Whether new or used, the least popular models in the least popular colors with the unpopular options will have the greatest discounts and offer the best deals. A pea green sedan with manual transmission and roll up windows might be a steal for someone who intends to drive it until it folds.
As Bruce Williams said, better to take a fast nickel than a slow dime. Who is to know what will be left and what incentives. Seems to me if you can get zero to 1% now on something you like, why wait?
There are alternatives to dealer financing. If you are going the dealer route, watch out for padding on the loan. This scam, very common BTW, is where you get a very low rate, but that amount reported to the bank is much higher than what you see. They add things like insurance and extended warranties.
For example, you buy a car for $20k at 1%. The dealer shows you a contract for the $20k loan at 1% for 60 months with payments of $374.31. Looks OK until you do the math. That would be the payment on a $21k loan at 1% for 60 mo. They just told the bank that you bought a warranty or something that you weren’t aware of.
Check the deals at your bank or credit union, their rates are unlikely to change in the next year or so. Low interest will be around for awhile.
Another factor is how long do you keep your car, 3 years or less wait till the next model year, 10 years snag a deal.
And if you’re gonna trade the car in in 3 years or less, why are you financing it and not leasing it?
Can you get a good deal? Sure - you already can. My insurance co. is showing their purchasing program offering 2012 Mazda6 i Sports with a manual transmission for $17,200, and automatics at $18,200. I could even still knock another $500 off for owner loyalty…
2 years ago we got an automatic for $17,800. By comparison right now, comparably equipped Fusions, Sonatas, Optimas, Camrys, and Accords are all still stuck in the $20,000+ range.
What baffles me is that it is MUCH cheaper nowadays (3 years ago this was not the case) than a Ford Fusion, which shares much of the same hardware - though the Fusion is assembled in Mexico and the Mazda6 by UAW labor in Michigan, so you would think the Mazda would have a price disadvantage.