Consumer research and ratings firm J.D. Power has released its December 2019 auto sales forecast, and the trends aren’t looking the best for the industry. New-vehicle retail sales are projected to have a 2.8% decrease compared to December 2018. But even though sales are down, individual transaction prices are increasing, which is helping manufacturers to maintain their profits.

At the moment, the market appears to be tilting in favor of the consumer. But there are more questions than just whether or not to buy. Should buyers apply for financing from banks, credit unions or manufacturers? Which manufacturers offer the best financing and leasing terms? How do interest rates compare for new versus used vehicles?

EDITOR’S RATING

4.0 / 5

PROS

• ARS as low as 2.49%
• Loans as high as $50,000
• Get approved within 24 hours
• High BBB score
• No prepayment fees
• Low minimum income requirement: $24,000
• Co-borrowers accepted

CONS

• Not a direct lender; connects borrowers with partnered lenders
• Maximum APR not disclosed; must check rates online
• One-time $399 fee
• Late fee depends on the lender

MotoRefi Review Summary: MotoRefi is a brokerage company that helps people refinance their existing auto loans at cheaper rates. MotoRefi doesn’t actually issue loans, but rather connects applicants with “trusted lenders, like credit unions and community banks,” that can give them the best deal on a new auto loan. No matter the lender, MotoRefi always charges a one-time fee of $399 for doing the paperwork to refinance your loan and transfer your vehicle’s title.

You don’t need a certain credit score to lease a car. The average credit score among new lessees has ranged from 715 to 722 over the past five years, according to Experian. But people with credit scores below 580 have taken out roughly 13% of the auto loans and leases over the past decade, according to data from Equifax. And more than 7% of new leases go to people with credit scores of 300 to 600. Such scores are firmly within “bad credit” territory, which just goes to show that a low score won’t completely prevent you from leasing a new set of wheels.

Although it’s clearly possible to lease a car with pretty much any credit score, the lower your score is, the fewer options you’re likely to have and the more expensive they’ll be. Just consider how those low rates you see advertised on television are “limited to well-qualified lessees.” Whether you opt for a lease or a loan, you’ll also have to get car insurance. And the cost will also depend on your credit standing, with people who have excellent credit capable of saving a great deal.

When purchasing a car – even some used cars – you’ll be faced with a decision about whether to purchase an extended warranty to protect yourself from expensive car repair bills. Before paying for one of these plans, it’s important to know what you’re buying and what your alternatives are.

Auto loans play a critical role in the US economy both as a major contributor to the US GDP, as well as a key factor in the household budgets of most families across the country. Not only does the automobile employ 11% of the total US workforce, the personal car also represents the main choice for the majority of Americans to commute to work. According to the latest US Census data over 86% of the American workforce (16 years of age and above) are driving or carpooling to work, for an average of 16 miles per day. Thus the ability to have access to a car can have a significant impact on a family’s earning potential. Access to reasonable sources of auto financing can maintain and boost car sales, thus preserving jobs and helping the overall economy.

With all the focus on mortgage refinancing these days, it’s easy to forget that you might have a bundle of potential savings tucked away in your garage.

Despite favorable interest rates and a lot of newish cars on the road, Americans are only beginning to realize the benefits of auto refinancing. And with more consumers taking out auto loans of 60 and 72 months than ever before, even a modest drop in interest rates can really pay significant dividends.