The following auto loan deals expire on June 2, 2025, unless stated otherwise. These offers come directly from the manufacturer and are accessible to highly qualified borrowers. Keep in mind, the availability may vary based on car models, trims, and geographical location. Check out the manufacturer’s website to verify these offers. The two prominent offers widely prevalent for numerous Honda models, and other models listed below, will last until March 31, 2026.
There's a possibility for auto loan interest rates to reduce this year, albeit not significantly. These rates usually fluctuate with the federal funds rate established by the Federal Reserve. A low federal funds rate means lower loan rates, and vice versa. The present federal funds rate ranges between 4.25% and 4.50%.
As per predictions made by interest rate traders on May 23, 2025, the federal funds rate may decrease by 0.25% this September and once again by the end of 2025. Hence, delaying your auto loan could give you a slightly better deal. However, if you require a car urgently, it's practical to explore options and make a choice right away rather than waiting for possible future drops in interest rates.
The aforementioned manufacturer deals are typically applicable to specific new car models and trims and are principally designed for borrowers with good to excellent credit scores. They may also be subject to regional restrictions.
Investopedia’s impartial study of online auto lenders and auto loan aggregators indicated an average minimum APR of 5.17% for new cars. Manufacturer deals might provide better terms if you possess excellent credit and are in the market for a new car.
If these conditions don't match your situation, consider these two financing alternatives. It is advisable to explore all your options. For instance, pre-qualifying with multiple auto lenders to see the terms they can offer places you in a strong negotiating position. If you secure a loan before visiting a dealership and are open to alternative options if they do not provide a better deal, you can significantly reduce the stress associated with buying a car.