The Broad Impact of 0% Auto Loans

No surprise that automakers are running incentives into the market at such a time, as well as 0%, 84-month financing terms. The captive financing that this generates is impacting banks and credit unions of course, but also driving many would-be used car shoppers into considering and buying new. Used car inventories, already bloated in the face of 14-15% price depreciation, are now made even less attractive when compared with the 0% financing that allows consumers to “upgrade” to a new car smell without a huge hike in monthly payment.

ESA’s Adam Armbruster plots all the data points on this dynamic, in another Thought Leadership Now flash update.

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