weather icon Rain

Getting the best financing for your next car purchase

New cars are getting more and more expensive. The average transaction price is more than $33,000. That’s $7,000 more than Nevada’s per capita income, according to the U.S. Census Bureau.

So, if you’re buying a new car, in most cases you are financing it. It’s smart that you know how to get the best financing for your next car purchase. Fortunately, the website WalletHub.com has done some research to help you get the best deals.

You’re most likely going to get the best deal starting with the manufacturer, reports WalletHub. Their financial arms offer the best deals (think “0 percent down!” and “0 ercent interest for 60 months!” for example). WalletHub says their rates can be 61 percent below average.

Toyota, Volkswagen, Kia, Ford, Dodge, Nissan and Buick offer the lowest financing rates out of the major car manufacturers surveyed. Volvo, Mazda, Nissan and Toyota have the best leasing offers, on the other hand. Leasing right now is really strong, according to SwapaLease.com. The site reports approval rates above 80 percent for three months in a row. Last September, for example, 64.5 percent of leases were improved.

Leasing is a good alternative to the high price of new cars. You can afford a lot more car for less money. Of course, you have to turn the vehicle in after three years, but it is a good way to make car payments affordable if you have strong credit but don’t want to see your cash tied up in financing a new car.

However, WalletHub says you’re going to get lower financing rates if you plan to keep your car for only three years. It says 95 percent of manufacturers will give you a better deal if you finance instead of lease. There are other things to take into consideration, such as comparing down payments and monthly payments. You may be paying a higher interest rate on the lease, but you’ll typically only pay a lease equal to 50 percent of a car’s value.

The next best source of automobile financing is going to be credit unions, which average 30 percent below typical lending rates. Your worst deals come from regional banks that offer loans 43 percent above average and national banks that come in 10 percent higher.

Something else important to consider is how good your credit is. Are you recovering from some financial difficulties? You probably don’t want to spend too much on your next car. Sure, you may need to finance it but borrow as little as possible in order to repair your credit rating.

As WalletHub says, buyers with fair credit spend six times more on a loan than those folks with excellent credit — about $6,100 more on a five-year, $20,000 loan. Fair credit could be defined as someone with a score around 650 and excellent credit is above 720. Everybody is rated on a scale from 350 to 800. Financing a car with a credit score below 600 is going to be really expensive. You should consider only paying cash.

Regardless of where you finance your next car loan, take a few minutes to crunch the numbers. Find an easy-to-use loan calculator online and see what you can expect to pay.

Don't miss the big stories. Like us on Facebook.
Lake Las Vegas hosts Drive 25 on Saturday

Hundreds of vehicles will be on display at Lake Las Vegas on Saturday as part of the Drive 25 car and golf showcase.

Cadillac Through the Years to be held Sunday at Town Square

The 14th annual Cadillac Through the Years car show will be Sunday at Town Square Las Vegas, and the event promises to be another blockbuster show featuring 117 years of Cadillac design and performance.

MuscleCars at The Strip returns to Speedway

One of the most celebrated aspects of Americana is the muscle car, an iconic example of the power of Detroit iron. Muscle car culture and drag racing are once again on display Friday through Sunday at the Las Vegas Motor Speedway with the return of MuscleCars at The Strip.

New truck sales are booming

Southern Nevada has endless opportunities for pickup truck drivers in a region that offers everything from the desert to the mountains. And whether a vehicle has two-wheel drive, front-wheel drive or all-wheel drive, trucks are fast becoming the choice of young adults, millennials and baby boomers.

Motor Trend show to be held this weekend

The Motor Trend International Auto Show returns to Las Vegas this weekend, bringing more than 350 of the latest automobile models from nearly 20 top manufacturers.

Green Car Factory showcases technology at SEMA

A Las Vegas company is drawing on technology popular in Europe to change the way car and truck owners service their vehicle’s engines.

Valley car dealers host AARP safe driving series

Summer has always been the deadliest time of year for driving, and those older than 65 have a much higher incidence of fatal injury per annual miles driven.

Ducati to auction custom Scrambler motorcycle for charity

On Saturday, a custom Scrambler build will cross the auction block at Mecum Las Vegas Motorcycle Auction at the South Point, with full proceeds going to Shriners Hospital for Children. The one-of-a-kind motorcycle was customized as part of Ducati’s Maverick program by prolific celebrity tattoo artist Grime.

Mecum Motorcycle Auction returns to South Point

Following the success of the inaugural summer Mecum Las Vegas Vintage Motorcycle Auction last June, which achieved $4.4 million in sales with an 80 percent sell-through rate, Mecum will again return to the South Point this Friday and Saturday with an estimated 600 vintage and collectible motorcycles on offer.