Low APR or good deal?

Question

I'm shopping for cars and in the few salespeople we talked to (mostly imports so far), it seems like you can either get a good APR rate (i.e. 1.9% for 48 mo., 2.9% for 60 mo., etc.) OR a good deal on the car price. But, not both. Is that typically the way it goes?

In other words, if you get one of those promotional APR rates, are you basically going to have to pay close to sticker???

Answer 1

No, you can go with the low APR from the car manufacturer, AND negotiate a discount with the dealer. Don't let the dealer tell you that you can't get a discount with the low APR.

It's true that you cannot get both a low APR and a rebate from the manufacturer, but it does not mean the dealer can't kick in a discount because the low APR is no money out of his pocket.

Answer 2

First, you usually have to qualify for the low interest rates.  Have a good credit rating.  If that is OK, then figure out what you would be saving interest wise over the 36/48/60 months vs. the rebates you may be getting.  New car dealerships do negotiate prices whether you are getting low interest or rebates.  You just need to be an educated buyer.   Most, if not all car manufacturer's have a website you can visit to see what rebates or low interest rates are available.  There are many that are not widely known.  Military, College Grad, previous ownership (same make) or switching makes.  Certain makes have discounts for people that work for certain companies, that have nothing to do with the automobile industry, called "Supplier Pricing".  Be an educated buyer, know what is available to you and do the math.