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If you've been waiting to buy a new car, you've probably noticed costs have remained steady over the past few years. Early into the pandemic car prices rose because of industry shortages and high demand. But now, overall costs are maintaining that same level due to rising interest rates.
In January 2022, Rebecca Betterton of Bankrate reported the average five-year auto loan interest rate was just about 3.9%. Now, in 2023, the average auto loan rate is more than 6%. And with vehicle prices holding strong, you could face a painful reality when it is time to sell or trade in your vehicle.
That is unless you take advantage of the Rate Cut Sale at Volkswagen SouthTowne. If you're a well-qualified buyer, this sale could save you thousands and protect you from the pains of skyrocketing inflation. In fact, with this sale, it's the best time in months to buy a car and subsequently protect your finances.
Here are just a few reasons why shopping for the best interest rates is a crucial way to get the best possible car deal right now.
Prices are stabilizing
While interest rates were historically low in the last few years, limited inventory and component shortages caused car prices to rise. So even though buyers weren't paying much interest, Ian Thomas at CNBC reports buyers most likely paid more than the manufacturer's suggested retail price for new and some used cars.
In 2023, inventory is rising at most dealerships, so prices are coming down. Surprisingly, inflation is also having very little effect on car prices. But car payments aren't all that different because you're paying more in interest.
The Rate Cut Sale is easing the burden of interest rate hikes
If you need a new car but are waiting until interest rates go back down you could be waiting a while. Fortune reports the Fed (Federal Open Market Committee) raised interest rates another 25 basis points for the third time this year. With continually rising interest, it is more important than ever to shop around for the best interest rates.
The truth is, no one is offering rates like Volkswagen SouthTowne. During their Rate Cut Sale going on right now, Volkswagen SouthTowne is cutting interest rates in half. Instead of raising prices and holding interest rates, the dealership is buying down interest rates, saving customers thousands of dollars over the course of their loan.
For example, well-qualified buyers can finance a brand-new Taos S all-wheel drive for 36 months at 1.9%, or a new Atlas for 60 months at 3.9% — far better rates than you'll find anywhere else right now. This is especially beneficial should interest rates stay at current levels, or worse, continue to rise. With that special rate locked in, there's no worrying about having to pay more later.
While you're welcome to pay more in interest somewhere else, it's a no-brainer to go with a vehicle from Volkswagen Southtowne during their Rate Cut Sale. The difference between a 3.9% and a 6.9% 60-month loan means not only saving thousands of dollars long-term but also means alleviating the burden on your wallet each month.
Trading your vehicle could mean savings long-term
Another solution Volkswagen SouthTowne is offering is to buy your vehicle and help you get into a more cost-efficient one. Did you buy your car when prices were well above MSRP? Do you want to downsize? Are you looking for a more fuel-efficient vehicle? Have your driving habits changed? These are all questions people are asking themselves as they look at their monthly budgets in light of inflation.
Volkswagen SouthTowne can help with its MSRP Vehicle Exchange Program. They're offering to pay the original base MSRP for that vehicle, deducting only for mileage, manufacturer incentives, and any damage (2010 and newer, and excludes high lines and EVs).
Refinancing is a future option
Should you not qualify for the super-low rates available during the Rate Cut Sale, don't stress too much. Medora Lee of USA Today says that while rates might continue to rise through 2023, "... rates will likely stop rising and hold at a higher level this year."
As the saying goes, "What goes up, must come down." Eventually, rates should lower as inflation settles down. If you need a vehicle and you're capable of paying the payment now, why not go ahead and get that new car?
When rates decrease, refinancing will be a breeze and save you money. It's only going to get better down the line.
Check out your options
The Volkswagen SouthTowne Rate Cut Sale isn't going to last forever, so be sure to visit in person or online and browse their available inventory. Whether you're looking for a family car or something that can efficiently get you to the office and back, Volkswagen SouthTowne will have the vehicle for you.
