CoPilot's October Monthly Incentives Radar highlights the top financing and cash-back incentives available to consumers for popular vehicles. With car prices lingering near record highs, incentives have become an important tool for manufacturers and dealers to bring in more customers who have been priced out of the competitive new car market, and jump start sluggish sales.
While the current average interest rate for a new car loan is 6.84%, automakers are offering more financing deals to bring more consumers in the door, especially given the fact that new car sales have seen a substantial slowdown in Q3. Manufacturers have also ramped up financing incentives for electric vehicles, which have suffered from a lack of consumer interest for the better part of a year. One example of this is the Kia EV9, which currently has an offer of 0% financing for 72 months. As a result of EV incentives, EV sales have actually increased by 51% between July and September—showing how they can be an effective tool in enticing customers to buy in a challenging market.
In a similar vein, as new car prices are averaging $49,619—29% more expensive than they were pre-COVID-19—automakers are also offering cash-back deals with an effective discount on the sticker price. Especially when used in combination, these incentives can help alleviate the sting of the double whammy of record-high new car prices and interest rates, which are still prohibitively high even with the Federal Reserve's most recent cuts.
With the Federal Reserve lowering interest rates last month, it has become increasingly more feasible for many consumers to finance a new vehicle purchase. Below, CoPilot has compiled a list of new cars with monthly payments of about $400 or less:
Unless otherwise stated, this table assumes a 6.84% interest rate (avg. for new cars) and a 60-month loan.
This story was produced by CoPilot and reviewed and distributed by Stacker Media.
