Posted by: John S Kiernan

Labor Day weekend is one of the busiest car-buying days of the year. And this year in particular will be interesting for consumers as dealers expect a drop in sales, perhaps forcing them to negotiate on prices. In 2015, the auto industry witnessed its highest sales in 15 years, selling more than 17 million cars and light-duty trucks, and that may have been the peak, according to industry experts.

With such grim projections, you might be wondering, “Is now a good time to buy a car?” The market says yes, but the decision ultimately rests on widely ranging factors — from your monthly disposable income to the type of vehicle you’re eyeing to whether you should buy or lease. The data provided in this report, along with our panel discussion featuring top industry experts, will help you make those decisions. This information is based on a detailed analysis of financing offers from a diverse group of 158 lenders. Scroll down for the complete results.

1. Key Findings
2. Who Offers the Best Rates?
3. Rates Over Time
4. Excellent vs. Fair Credit Score
5. Manufacturer Transparency
6. Debt Levels Over Time
7. Ask the Experts
8. Methodology
9. Historical Data

Key Findings

• Interest rates for new cars are at their lowest point in the past three years. However, the average new-car loan now charges 17 percent less interest than the average used-car loan.
• Now is the time for people with excellent credit to buy used cars. The average interest rate for such buyers has fallen nearly 32 percent since Q3 2014.
• Overall, buyers who have fair credit will end up spending about six times more to finance a vehicle than someone with excellent credit, which equates to $6,671 in additional interest payments over the life of a $20K, five-year loan.
• People in the market for a new car should start their search for financing with car manufacturers (rates 51 percent below average) and credit unions (26 percent below average). National banks (1 percent below average), and regional banks (35 percent above average) should be secondary options.
• Car manufacturers continue to lack transparency when it comes to leasing offers, with the average one receiving a WalletHub Transparency Score of 4.68/10. The most transparent manufacturers are currently Mazda, Infiniti, Mini, BMW, Acura, Mercedes, Honda, Volkswagen, Kia, Toyota, Nissan, Audi and Hyundai and even they registered only a 6-point rating.
• Toyota, Nissan, Hyundai, Subaru, Ford, Mini and Cadillac offer the lowest financing rates out of the major car manufacturers we surveyed. Nissan, Toyota, Hyundai, Jaguar, Ford, Honda and BMW have the best leasing offers.

Who Offers the Best Rates?

  Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/10131/auto2016-columnchart1.html" width="780" height="450" frameBorder="0" scrolling="no"></iframe> <div style="width:780px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2lPFOQX;  Note: Above data is based on a 36-month term.  

Financing Offers by Car Manufacturer

It is important for consumers to understand that car-dealership financing offers may originate from the financing arm of a car manufacturer or from a third-party financial institution. The following offers reflect financing available directly from car manufacturers’ financing arms.

Car Manufacturer	Financing APR Q3 2016	Lease APR (inferred interest rate) Q3 2016
Honda	1.99%	3.13%
Toyota	0.00%	2.97%
Volkswagen	1.99%	3.59%
Chevrolet	2.90%	4.68%
BMW	0.90%	3.16%
Nissan	0.00%	2.54%
Hyundai	0.00%	3.03%
Kia	2.00%	3.65%
Mazda	2.69%	4.86%
Acura	1.99%	5.32%
Subaru	0.00%	6.76%
Ford	0.00%	3.10%
Dodge	2.90%	10.02%
Audi	1.99%	4.11%
Infiniti	0.99%	4.23%
Mini	0.00%	7.82%
Lexus	0.90%	5.85%
Mercedes	2.99%	4.81%
Jaguar	1.90%	3.06%
Scion	1.90%	3.35%
Fiat	3.90%	7.53%
Cadillac	0.00%	3.17%
Average	1.45%	4.58%

Note: Above data is based on a 36-month term. The APRs presented for the financing and lease programs of the car manufactures are only informative. The actual values that one can obtain are based on various factors, including the borrower’s credit worthiness, income, location of residence, promotional programs and even negotiation skills. Make sure to always check upfront with a dealer about the availability of any discounts for particular groups (i.e. USAA members) that you might qualify for as well as whether any other costs and/or restrictions may be imposed, especially in the case of lease contracts.

Rates Over Time

Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/10131/auto-linechart1.html" width="780" height="450" frameBorder="0" scrolling="no"></iframe> <div style="width:780px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2lPFOQX;Note: Above data is based on a 36-month term.

Excellent vs Fair Credit Score

Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/10131/auto-columnchart2.html" width="780" height="450" frameBorder="0" scrolling="no"></iframe> <div style="width:780px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2lPFOQX;    Note: Above data reflects a $20,000 five-year loan for a new car with a fixed interest rate, using WalletHub’s interest rate data from Q3 2016.

Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/10131/auto-linechart2.html" width="780" height="450" frameBorder="0" scrolling="no"></iframe> <div style="width:780px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2lPFOQX;

Manufacturer Transparency

Leasing offers are the most difficult type of car-purchasing arrangement for consumers to understand, as they lack the equivalent of an APR that can be used for comparison purposes. As a result, the transparency of manufacturers about these deals is integral to a consumer’s ability to make informed decisions.

Manufacturer	Transp. Score Q3 2016		Manufacturer	Transp. Score Q3 2016
Mazda	6		Audi	6
Infiniti	6		Hyundai	6
Mini	6		Subaru	5
BMW	6		Ford	3
Acura	6		Dodge	3
Mercedes	6		Lexus	3
Honda	6		Chrysler	3
Volkswagen	6		Volvo	2
Kia	6		Buick	2
Toyota	6		Cadillac	2
Nissan	6		Chevrolet	2

Debt Levels Over Time

Source: Federal Reserve Bank of New York Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/10131/auto-linechart5.html" width="780" height="450" frameBorder="0" scrolling="no"></iframe> <div style="width:780px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2lPFOQX;

Source: Federal Reserve Bank of New York Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/10131/auto-linechart6.html" width="780" height="450" frameBorder="0" scrolling="no"></iframe> <div style="width:780px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2lPFOQX;

Source: Federal Reserve Bank of St. Louis Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/10131/auto-linechart7.html" width="780" height="450" frameBorder="0" scrolling="no"></iframe> <div style="width:780px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2lPFOQX;

Source: Federal Reserve Bank of St. Louis Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/10131/auto-linechart8.html" width="780" height="450" frameBorder="0" scrolling="no"></iframe> <div style="width:780px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2lPFOQX;

Ask the Experts

If you aren’t carefully monitoring the trends in car sales, you might price yourself out of a good deal — or buy at the wrong time. For additional insight into the car-buying process and related issues, we asked a panel of leading experts to weigh in. Click on the experts’ profiles to read their bios and responses to the following key questions:

1. On a scale of 1 (an emphatic no) to 10 (an emphatic yes), is this a good time of year to buy a car?
2. Do you expect auto financing deals to improve/get worse/stay the same over the next 12 months?
3. What steps can buyers and dealers take to make the car buying process more transparent and hassle-free?
4. What tips do you have for individuals with fair or poor credit who are looking for an auto loan?
5. What are some signs that you may be getting ripped off in the auto financing process?

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• William J. Pinilis Civil Trial Attorney and Founder of ConsumerFraudForum.com
• Elizabeth C. Crockford Assistant Professor of Business Administration at Colby - Sawyer College
• Jeremy Heckman Lead Wealth Manager at Accredited Investors Inc.
• Mark Jansen Assistant Professor of Finance in the David Eccles School of Business at The University of Utah
• Shaun William Davies Assistant Professor of Finance in the Leeds School of Business at University of Colorado at Boulder
• Carole Makela Professor in the School of Education in Colorado State University’s College of Health and Human Sciences
• Abed G. Rabbani Assistant Professor of Personal Financial Planning at the University of Missouri

William J. Pinilis Civil Trial Attorney and Founder of ConsumerFraudForum.com On a scale of 1 (an emphatic no) to 10 (an emphatic yes), is this a good time of year to buy a car? I would say 8. There are usually a good number of end of summer and Labor Day weekend sales. The end of the month is always a good time to buy a car because dealers usually finance the cars that they sell on a monthly basis. If you take delivery of a car at the end of a month, the dealer does not have to finance it for the following month. This usually incentivizes dealers to make deals. Also, most car manufacturers release new model year cars between September and December. This also provides a powerful incentive to make deals and get the existing models (which will soon be replaced) off of the lot. Do you expect auto financing deals to improve/get worse/stay the same over the next 12 months? If I knew the future cost of credit, I would be a very wealthy person. Nobody really knows what the consumer credit markets will do in the future. The important thing is for consumers to shop around for credit and make sure to pay a price for credit (the finance charge or what we think of as “interest") which the consumer can afford. What steps can buyers and dealers take to make the car buying process more transparent and hassle free? Shop for your own loan and do not allow the dealer to arrange financing or insurance. Use the various price comparison tools on the internet to find the best loan rates. Car salespeople will often ask you to tell them the most you can afford to pay on a monthly basis. Don’t ever do this! This is a common ploy used to get you to agree to pay the monthly payment you say you can afford, while you vastly overpay in other ways, like a substantially longer loan period. What tips do you have for individuals with fair or poor credit who are looking for an auto loan? Be careful shopping for credit, and make sure to seek a loan from more than one source. You would shop around for the best price before buying an expensive appliance, or the car itself. A loan is simply another purchase. When consumers take out a loan, they are really buying the use of money. And the cost of the use of that money varies dramatically. Think of a loan as you would any other consumer purchase, and shop around! Do not simply allow the car dealer to arrange a loan and accept the assurance (which is almost always not true) that the rate is the best you will do. Often you can do better dealing directly with a lender. What are some signs that you may be getting ripped off in the auto financing process? They present you with folded papers, or flag the areas of the contract that you are supposed to sign, while rushing you through the process and not giving you a chance to review. Ask to take the documents home and return the next day to pick up the car! Elizabeth C. Crockford Assistant Professor of Business Administration at Colby - Sawyer College On a scale of 1 (an emphatic no) to 10 (an emphatic yes), is this a good time of year to buy a car? It seems like the ‘deals’ are pretty good – low payments being advertised – but of course, looking at all the terms is critical and you don’t get those in the television and print ads. Check out the fine print. In addition, I tend not to like to buy a car in the fall as I live in the Northeast – nothing dirtier than a car in the winter and I prefer early spring so I have that new car smell for awhile! Do you expect auto financing deals to improve/get worse/stay the same over the next 12 months? In general, I don’t think we’ll see too many rate changes until after the election. The Fed doesn’t know any better than the rest of us what is going to happen in November. After that, it may be anyone’s guess. We know rates will eventually go up – when is the unknown. If you know you need a car in the next 6-8 months – I would go earlier rather than dragging your feet. What steps can buyers and dealers take to make the car buying process more transparent and hassle free? I probably pay more for a car than those who love the negotiating and haggling… for me, saving a couple hundred dollars is not worth the time and hassle. If you like the dealing – take the time to negotiate and don’t hesitate to walk away. If you don’t – go to a dealer who has ‘set pricing’ and just pay what everyone pays – they are more transparent and you can see they take a ‘fair’ profit and you know exactly where you stand. This has been effective for having some options in how you choose to buy a car. What tips do you have for individuals with fair or poor credit who are looking for an auto loan? Well, first of all – start dealing with your credit. It takes time and the longer you put off managing your credit – the worse it gets. Pay down cards, close some cards (keeping 2 is reasonable), pay everything going forward on time… watch your spending. There are places who will sell/lend for autos to those with poor credit – understand you will pay more, that is just the nature of the beast. Buy solid used cars – and maintain them well so you can get the loan paid off before it is time to buy again. Forge a good relationship with a service station who is reasonable in the fees charged. Resist the urge to over-spend on a car until you get spending under control and your credit in good shape. Good credit will reduce the cost of your next car and that can be your incentive for better consumer behavior over the next 2-3 years… and maybe a brand new car becomes more possible next time. What are some signs that you may be getting ripped off in the auto financing process? Game playing and rushing you. I dislike the ‘I need to run this by my manager’ or ‘you need to give me a check for $500 to show you are serious’. I refuse those games… giving a check doesn’t secure a thing, I can just put a stop payment on it the moment I walk out the door – and it just irritates me. If they begin to rush you while you are trying to read the fine print – be suspicious. Don’t get rushed by being told it is the very last car available… so what, maybe the next car will be better. Dealerships have generally become more open and transparent as the access to more information via the Internet has become so common. When you are an educated consumer – you don’t get scammed… do your homework about interest rates, car ratings, dealer ratings, price comparisons, etc., before you step foot in a dealership. Jeremy Heckman Lead Wealth Manager at Accredited Investors Inc. On a scale of 1 (an emphatic no) to 10 (an emphatic yes), is this a good time of year to buy a car? 7. Generally speaking, late summer or early fall can be a good time of year to buy a car as the new models for the coming year arrive at dealerships and they look to clear out of any old inventory. However, caution should be exercised on making a decision to purchase a car based solely on the time of the year as many other factors should be considered that are likely more important. Do you expect auto financing deals to improve/get worse/stay the same over the next 12 months? I wouldn’t be surprised if financing deals generally stayed the same over the next 12 months. We have experienced a long period of low interest rates and while the threat of higher interest rates could change that over time, it will likely take longer than 12 months for any rate increases to have a significant impact on the consumer. Further, manufacturers will likely continue to be aggressive to find ways to incentivize the consumer. A good example of this may be the current 0% financing offer for 72% months on the Toyota Camry, as sales for the vehicle have decreased over the past year from this time last year. What steps can buyers and dealers take to make the car buying process more transparent and hassle free? The car buying process has become much more transparent in recent years thanks to online resources such as Truecar.com and the Costco Auto Program for Costco members. Consumers should utilize tools such as Truecar.com to educate themselves as to what they should be paying for a vehicle in their current market and region. Truecar.com allows consumers to see what others paid for the vehicle and provides an opportunity to obtain upfront pricing on the vehicle you are looking for with the specific options you want. Dealerships should continue to employ associates who can assist the educated consumer looking to purchase the exact vehicle they have researched and priced online once they are ready to make the purchase. What tips do you have for individuals with fair or poor credit who are looking for an auto loan? Individuals with fair or poor credit looking for an auto loan should first understand why their credit scores are fair or poor and what they can do to correct them before obtaining financing. The consumer may also want to work with a local credit union to understand their credit history and determine ways they can improve their credit to obtain better financing options. If they are unable to improve their credit before there is a financing need, they might want to finance the least amount possible for the vehicle, perhaps by changing their expectations on what they really need in a vehicle instead of what they may want or what looks good. The consumer should also understand if the loan they are applying for has any upfront costs or prepayment penalties. If the auto loan does not have any prepayment penalties, then the borrower should look to improve their credit as quickly as possible and make plans to refinance the loan to a lower interest rate as soon as they are able to. What are some signs that you may be getting ripped off in the auto financing process? Upfront costs, prepayment penalties, higher interest rates, stretching the loan out for a longer term to meet a monthly budget goal, adding additional package items to the amount financed. The consumer should educate themselves as to what financing offers are currently available and what type of credit is needed to obtain the offers. They can do so by utilizing resources such as wallethub.com. Perhaps most importantly, consumers should know their own credit rating so they understand what financing offers they are eligible for. Consumers should have a plan going into the auto financing process. They should 1) Know their credit rating 2) Understand current financing offers 3) Set a budget they wish to stay within, which does not mean a monthly payment, but rather a total cost of the purchase 4) Know what they are looking to purchase and what they do not want to purchase – this last point often gets overlooked as consumers go to dealerships to look and end up buying. Consumers can then find themselves at the financing table purchasing additional items such as extended warranties, paint protection packages and other offers from the dealer that were not pre-planned and can increase financing costs substantially. Mark Jansen Assistant Professor of Finance in the David Eccles School of Business at The University of Utah On a scale of 1 (an emphatic no) to 10 (an emphatic yes), is this a good time of year to buy a car? While there are many factors that determine the optimal time to buy a car, an important consideration is the cost of financing that purchase. Interest rates for car loans are currently at near historical lows. Car buyers that are ready to make a purchase may be able to take advantage of attractive financing deals that are currently available. Do you expect auto financing deals to improve/get worse/stay the same over the next 12 months? Predicting future financing costs of car loans is notoriously difficult. While interest rates and auto financing deals could improve over the next 12 months, it's unlikely that any improvements will be meaningful. In contrast, there are several macroeconomic scenarios by which increases in interest rates and interest rate spreads could adversely affect the cost of automotive financing for consumers across the entire credit spectrum. What tips do you have for individuals with fair or poor credit who are looking for an auto loan? Consumers with poor credit may face significant variation in the cost of automotive financing. As a result, it is particularly important for consumers with marginal credit to shop around for not only the best car value, but also give heavy consideration to the financing terms before making a purchase decision. In effect, a marginal credit consumer should not finalize their vehicle (or even a dealership) selection until they are able to compare the credit terms that are offered from multiple dealers and lenders. Consumers should be particularly cautious if the underlying value of the vehicle that is being financed is not in line with common guidelines (i.e., NADA, Blue Book, Black Book). Shaun William Davies Assistant Professor of Finance in the Leeds School of Business at University of Colorado at Boulder The one piece of advice I would have for all individuals is: don't fall into the pressure trap. For example, when going to look for new cars don't bring your checkbook or don't drive the car you plan to trade-in. This creates a credible means to not buy while you're there and will give you the opportunity to reevaluate outside the dealership walls. A salesperson might say the deal is only good for that day, or that they'll give you a special discount if you purchase now instead of later, but that most likely is not a credible threat. It's all about incentives. Suppose a salesman says "I can give you $1,000 off the price right now, but only if you purchase tonight". While this might be true due to car company sales and such that expire, most times it is not credible. That is, suppose you declined and came back the next day. Is it reasonable that the salesman wouldn't give you $1,000 off the next day too? His or her incentives are to sell the car and it's hard to imagine that they would be so stubborn to not honor the offer from the previous evening. Carole Makela Professor in the School of Education in Colorado State University’s College of Health and Human Sciences What steps can buyers and dealers take to make the car buying process more transparent and hassle free? Buyers: Know what you can afford (however it will be financed). If a trade-in is involved, do your homework so approximate value is known; will the car be serviced where purchased (what is the reputation of their service? — that is who you will be dealing with from now on); don’t be surprised that few cars will sell at advertised price (added options, transportation, other additional charges); understand the sticker price, mark-ups, etc. Dealers: Set prices, salaried sales personnel — but these are the exceptions. Don’t use a high pressure approach. Be fair to all car shoppers — less than equal treatment including pricing to women, minorities, or first time buyers is unacceptable. Have well trained sales personnel. The buyer should recognize that the purchase transaction becomes more complicated when it is more than buying a car. Complicating factors are a trade in, loan, extended warranty, insurance, lease or buy, etc. Each of these is its own set of decisions and one must recognize that each gives a dealer another option to make money. This is not to say that there shouldn’t be a fair gain for the dealer. What tips do you have for individuals with fair or poor credit who are looking for an auto loan? Know your credit score and recognize if there are actions that can be taken to improve your score. Shop for credit. What are some signs that you may be getting ripped off in the auto financing process? Being rushed to sign the paperwork or being asked to sign paperwork with incomplete information filled in, addition of items that may not have been agreed as extended warranty, insurance (shop separately for it), given an option of length of time of repayment (will you keep the car the length of the loan?), refusal to let one take the paperwork overnight to review it (and read it), stiff penalties for early repayment. Abed G. Rabbani Assistant Professor of Personal Financial Planning at the University of Missouri On a scale of 1 (an emphatic no) to 10 (an emphatic yes), is this a good time of year to buy a car? Timing is important in buying a car. If this is a good time of the year to buy a car depends on if you are trying to buy a new or a used car. You need to understand the demand in the market; buying a new car when it’s in high demand may not be a good decision. The conventional wisdom is that buying a new car at the end of the calendar year is a good strategy since dealers will try to meet their annual sales goal. As for the used car, September is a good time as dealers often try to clear out used cars during this time to get ready for new models. Therefore, in my opinion, if you are buying a used car I would give 8 and for a new car, I would give 6. Do you expect auto financing deals to improve/get worse/stay the same over the next 12 months? Auto financing deals are strongly linked to the overall economic activity. I expect the U.S. consumer spending to increase over the next 12 months. I also expect consumer confidence to increase. This economic growth could pave the way for the Federal Reserve to raise the interest rate at the end of this year. Therefore, I expect the financing deals to stay the same during the rest of 2016. However, car buyers should be prepared for financial deals to get worse in 2017 as the interest rate could increase. What steps can buyers and dealers take to make the car buying process more transparent and hassle free? If you are a buyer (1) do your research before going to the dealer. The number of choices you have at any point in time is directly related to the amount of detail you have. Utilize Kelly Blue Book, Edmunds, TrueCar, and AAA; (2) know how much car debt you can afford. Do not buy a car that you cannot afford; (3) receive and compare multiple credit offers before you decide; and (4) have a clear idea about your needs/wants regarding trims, add-ons, and extended warranty, etc. that make sense for you. What tips do you have for individuals with fair or poor credit who are looking for an auto loan? Plan ahead for this big ticket purchase. Start saving for your car purchase if you think you will not get qualified for good financing deal. Start rebuilding and improving your credit score. The best way to improve your score is to pay your bills on time and keep low balances. In addition, check your credit report for errors. Shop around for a good auto loan. Avoid cutting corners by availing a less attractive loan from the auto dealer’s finance company. You will regret it later. What are some signs that you may be getting ripped off in the auto financing process? A reduced monthly payment offer is a sure sign of getting ripped off. Low monthly payment means longer loan term. Resist the temptation to accept this deal. You will end up paying more over the long run. An extra year or two of indebtedness will cost you more money in interest. Your purchase decision should be based on calculated total cost you can afford. Another sure sign is the offer “Bad Credit, No Credit, No Worries” deal. If a dealer qualifies you with a bad credit or no credit that means you will end up with an exceptionally high interest rate.

Methodology

For this report, we reviewed auto-financing offers from 158 lenders, including 27 “Community Banks” (<$1 billion in total deposit volume) and “Small Banks” ($1 billion to $10 billion in total deposit volume), 47 “Regional Banks” ($10 billion to $100 billion in total deposit volume), 10 “National Banks” (those with a national presence), 52 “Credit Unions” and 22 “Car Manufacturers.”

For comparison purposes, we used 36 months as the repayment term for both financing and lease programs.

For bank-originated loans, we applied the following assumptions:

• $20,000 Loan: New Cars
• $10,000 Loan: Used Cars
• 80 Percent LTV
• Excellent Credit Score: 720+

In order to calculate the “Lease APR,” we used the following methodology:

• We calculated the difference between the price of the car at the beginning and end of the lease to represent the amount that someone “borrows” when he or she leases a car.
• We then multiplied the monthly payments with the term of the lease to obtain the total amount paid for that contract.
• Finally, we calculated the difference between the total amount of payments on the lease contract and the amount “borrowed” to represent the total amount of interest, in dollars, that was paid during that period.

We obtained car-manufacturer loan and lease data from manufacturer websites, where available, or contacted the manufacturer directly. We also applied the following assumptions:

• Excellent Credit Score: 720+
• Annual Expected Mileage for the Lease Program: 15,000

For each car manufacturer, we requested APR data from an AutoNews study published quarterly for the most popular model with the most basic equipment options available.

For the price of the car, we used the “Manufacturer Suggested Retail Price,” or “MSRP,” minus any applicable dealer discount. Our sample of cars includes the following:

Car Manufacturer	Car Model Q3 2016	Price of the Car
	2017 Honda Accord Sedan LX	$21,387
	2017 Toyota Camry SE FWD	$22,447
	2016 Volkswagen Jetta Sedan S Automatic	$18,040
	2016 Chevrolet Cruze Sedan LS	$18,510
	2016 BMW 3 Series -320i Sedan	$35,993
	2016 Nissan Altima 2.5 S	$23,664
	2017 Hyundai Elantra SE Automatic	$17,750
	2016 Kia Optima LX	$21,839
	2016 Mazda3 i Sport	$17,418
	2017 Acura ILX	$27,922
	2016 Subaru Outback 2.5i	$25,200
	2016 Ford Fusion SE	$24,180
	2016 Dodge Charger SE	27,495
	2017 Audi A4 2.0 TFSI Premium FWD	$36,980
	2016 Infiniti Q50 3.7	$37,107
	2016 Mini Cooper Hardtop	$25,045
	2016 Lexus ES 300	$36,868
	2016 Mercedes-Benz E350 Sedan	$48,416
	2016 Jaguar XF 35T Premium	$54,245
	2016 Scion TC Automatic	$21,662
	2016 Fiat 500 POP Automatic	$14,490
	2016 Cadillac ATS Sedan RWD 2.5L Standard	$28,700

Car Manufacturer & Dealer TransparencyHow easy is the process of obtaining complete financing and lease information from car manufacturers and dealers? – Worth 10 Points Total

1. When lease information is provided on the manufacturer/dealer’s website, how complete is the info? – Worth 5 Points Total
   • Monthly Payment + Lease Term – 0 points
   • Price of the Car – 1 point
   • Down Payment – 1 point
   • Residual Value – 3 points
2. Does the manufacturer/dealer provide complete lease info on its website for any car combo a consumer may choose? – Worth 1 Point Total
   • Yes - 1 point
   • No - 0 points
3. How prevalent is the lease information provided on the manufacturer/dealer’s website? – Worth 2 Points Total
   • Complete Info is not Provided – 0 points
   • Complete Info is Provided but it is on Fine Print or Hard to Find – 1 point
   • Complete Info is Provided and it is Prevalent – 2 points
4. Does the manufacturer/dealer provide complete lease info offline? - Worth 2 Points Total
   • Both Car Manufacturers and Car Dealers are Willing to Provide Complete Info – 2 points
   • Only Car Manufacturers are Willing to Provide Complete Info – 1 point
   • Only Car Dealers are Willing to Provide Complete Info – 1 point
   • Neither Car Manufacturers nor Car Dealers are Willing to Provide Complete Info – 0 points

 

Historical Data Car Loan APRs 2013-2016

	Q2 2016 (vs. last yr)	Q1 2016 (vs. last yr)	Q4 2015 (vs. last yr)	Q3 2015 (vs. last yr)	Q2 2015 (vs. last yr)	Q1 2015 (vs. last yr)	Q4 2014 (vs. last yr)	Q3 2014 (vs. last yr)	Q2 2014 (vs. last yr)	Q1 2014 (vs. last yr)	Q4 2013 (vs. last yr)
National and Regional Banks - New Cars	3.90% (-8.91%)	4.15% (-3.20%)	4.08% (-5.25%)	4.29% (-0.76%)	4.28% (-1.45%)	4.29% (-2.44%)	4.31% (-3.20%)	4.33% (-2.55%)	4.34% (-3.74%)	4.39% (-5.26%)	4.45% (-7.87%)
National and Regional Banks - Used Cars	4.54% (-8.76%)	4.73% (-4.73%)	4.81% (-6.14%)	5.05% (1.47%)	4.98% (-0.98%)	4.96% (-1.30%)	5.12% (-1.16%)	4.98% (-2.04%)	5.02% (-2.84%)	5.03% (-4.65%)	5.18% (-5.90%)
Credit Unions – New Cars	2.21% (-7.43%)	2.20% (-8.62%)	2.16% (-11.40%)	2.18% (-11.97%)	2.39% (-3.58%)	2.41% (-4.24%)	2.44% (9.25%)	2.47% (N/A)	2.48% (N/A)	2.51% (N/A)	2.24% (N/A)
Credit Union – Used Cars	2.49% (-6.32%)	2.49% (-6.96%)	2.46% (-15.79%)	2.45% (-16.85%)	2.66% (-10.38%)	2.68% (-9.94%)	2.93% (15.35%)	2.95% (N/A)	2.96% (N/A)	2.98% (N/A)	2.54% (N/A)
Community and Small Banks – New Cars	4.22% (13.82%)	4.35% (14.42%)	4.13% (4.41%)	4.34% (9.64%)	3.71% (-7.27%)	3.80% (-4.82%)	3.96% (-12.14%)	3.96% (N/A)	4.00% (N/A)	4.00% (N/A)	4.50% (N/A)
Community and Small Banks – Used Cars	5.36% (17.93%)	5.33% (18.18%)	5.17% (5.61%)	5.30% (8.71%)	4.55% (-7.48%)	4.51% (-6.86%)	4.90% (-2.21%)	4.88% (N/A)	4.92% (N/A)	4.84% (N/A)	5.01% (N/A)
Car Manufacturers – New Car Financing	1.93% (21.87%)	2.19% (4.78%)	1.99% (N/A)	1.21% (N/A)	1.58% (N/A)	2.09% (N/A)	1.92% (-21.89%)	N/A (N/A)	N/A (N/A)	N/A (N/A)	2.46% (N/A)
Car Manufacturers – Leasing	4.94% (0.43%)	4.43% (-10.14%)	4.76% (N/A)	5.00% (N/A)	4.92% (N/A)	4.93% (N/A)	5.73% (31.84%)	N/A (N/A)	N/A (N/A)	N/A (N/A)	4.35% (N/A)

Note: Above data is based on a 36-month term.

Historical Financing Offers by Car Manufacturer

Car Manufacturer	Financing APR Q2 2016	Lease APR (inferred interest rate) Q2 2016	Financing APR Q1 2016	Lease APR (inferred interest rate) Q1 2016	Financing APR Q4 2015	Lease APR (inferred interest rate) Q4 2015	Financing APR Q3 2015	Lease APR (inferred interest rate) Q3 2015	Financing APR Q2 2015	Lease APR (inferred interest rate) Q2 2015	Financing APR Q1 2015	Lease APR (inferred interest rate) Q1 2015	Financing APR Q4 2014	Lease APR (inferred interest rate) Q4 2014	Financing APR Q4 2013	Lease APR (inferred interest rate) Q4 2013
Nissan	0.00%	5.09%	0.90%	4.53%	2.99%	4.18%	0.00%	3.06%	0.00%	4.57%	0.00%	0.94%	0.00%	4.74%	0.00%	2.04%
Toyota	0.00%	2.35%	2.99%	1.94%	0.00%	5.78%	0.00%	3.29%	0.00%	2.87%	0.00%	4.39%	1.90%	5.66%	3.38%	4.42%
Mazda	0.00%	6.19%	1.99%	5.76%	3.99%	5.15%	0.90%	2.86%	3.99%	9.21%	2.24%	5.75%	0.90%	6.36%	0.90%	3.23%
Honda	0.90%	3.56%	0.90%	6.40%	0.90%	2.83%	0.90%	3.36%	0.90%	4.77%	0.90%	5.67%	0.90%	3.67%	0.90%	6.25%
Chrysler	N/A	N/A	N/A	N/A	N/A	N/A	0.90%	3.41%	1.90%	9.15%	0.00%	4.55%	1.98%	8.28%	3.64%	4.80%
Lexus	1.90%	4.05%	2.90%	5.26%	2.90%	3.92%	0.90%	3.68%	N/A	N/A	N/A	N/A	N/A	N/A	2.90%	2.17%
Volvo	N/A	N/A	1.99%	2.70%	N/A	N/A	2.69%	1.94%	1.69%	2.65%	1.90%	2.57%	1.90%	7.23%	N/A	N/A
Kia	1.90%	6.99%	2.99%	2.70%	N/A	N/A	0.00%	4.83%	0.00%	7.54%	1.90%	4.36%	0.00%	5.27%	0.90%	6.01%
Ford	0.00%	3.44%	2.90%	5.00%	N/A	N/A	0.00%	5.02%	0.00%	2.81%	5.90%	6.95%	3.94%	4.71%	4.90%	2.38%
BMW	2.97%	3.72%	2.92%	4.97%	2.92%	5.98%	0.90%	4.42%	0.90%	3.35%	3.12%	6.67%	3.12%	2.26%	2.99%	4.67%
Volkswagen	1.90%	3.34%	2.90%	3.23%	1.90%	5.02%	0.00%	5.42%	0.00%	3.89%	2.90%	3.97%	2.90%	5.68%	3.90%	2.51%
Infiniti	1.90%	3.62%	1.90%	4.81%	N/A	N/A	1.99%	3.84%	1.90%	4.14%	2.90%	2.87%	2.49%	4.68%	2.99%	5.64%
Audi	2.90%	6.94%	3.90%	5.83%	2.90%	3.88%	2.90%	3.34%	2.90%	2.73%	2.29%	5.23%	2.90%	6.41%	1.90%	4.34%
Chevrolet	2.90%	2.71%	1.99%	1.91%	1.99%	6.97%	1.99%	5.03%	2.99%	5.28%	2.90%	3.27%	1.90%	1.32%	2.90%	1.15%
Subaru	1.49%	8.35%	1.49%	6.59%	1.49%	3.92%	1.90%	5.23%	1.49%	3.81%	1.49%	4.37%	2.99%	8.01%	0.00%	2.50%
Buick	1.99%	5.02%	2.90%	3.88%	N/A	N/A	0.00%	7.26%	N/A	N/A	N/A	N/A	1.85%	4.13%	1.90%	3.49%
Mercedes	2.69%	3.46%	2.99%	4.23%	N/A	N/A	3.49%	4.32%	N/A	N/A	2.99%	8.11%	2.99%	9.28%	3.90%	5.43%
Mini	3.44%	6.19%	0.90%	6.84%	N/A	N/A	1.49%	6.83%	1.90%	6.60%	0.90%	4.27%	1.90%	7.89%	N/A	N/A
Cadillac	N/A	N/A	1.90%	4.17%	1.90%	3.81%	1.88%	6.65%	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Hyundai	1.90%	5.39%	2.99%	4.18%	N/A	N/A	1.90%	7.24%	2.59%	3.62%	2.90%	7.42%	2.90%	6.37%	0.00%	4.73%
Dodge	3.90%	9.24%	0.00%	5.99%	0.00%	5.68%	0.00%	10.41%	0.00%	10.86%	1.90%	7.74%	1.99%	10.64%	3.90%	6.78%
Acura	1.90%	4.28%	1.90%	4.06%	N/A	N/A	1.90%	8.52%	1.90%	3.84%	0.90%	3.20%	0.90%	4.53%	0.90%	5.08%
Mitsubishi	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	2.99%	3.50%	N/A	N/A	0.00%	3.31%	N/A	N/A
Jaguar	1.99%	2.00%	1.90%	2.57%	N/A	N/A	N/A	N/A	2.90%	6.87%	1.90%	5.14%	N/A	N/A	N/A	N/A
Fiat	3.90%	5.73%	N/A	N/A	N/A	N/A	N/A	N/A	3.90%	3.12%	3.90%	6.05%	N/A	N/A	4.90%	6.08%
Scion	1.90%	6.94%	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	3.95%	7.59%
Average	1.93%	4.94%	2.19%	4.43%	1.99%	4.76%	1.21%	5.00%	1.58%	4.92%	2.09%	4.93%	1.92%	5.73%	2.46%	4.35%

Historical Manufacturers Transparency Score

Manufacturer	Transp. Score Q2 2016	Transp. Score Q1 2016	Transp. Score Q4 2015	Transp. Score Q3 2015	Transp. Score Q2 2015	Transp. Score Q1 2015	Transp. Score Q4 2014
Mazda	6	6	6	6	6	6	6
Infiniti	6	6	6	6	6	6	6
Mini	6	6	6	6	6	6	6
BMW	6	6	6	6	6	6	3
Acura	6	6	6	6	6	6	3
Jaguar	N/A	N/A	N/A	N/A	6	6	N/A
Honda	6	6	6	6	6	3	3
Volkswagen	6	6	6	6	6	3	3
Kia	6	6	6	6	6	3	3
Toyota	6	6	3	3	3	3	3
Nissan	6	6	3	3	3	3	3
Ford	3	3	3	3	3	3	3
Dodge	3	3	3	3	3	3	3
Audi	6	3	3	3	3	3	3
Volvo	2	2	3	3	3	3	3
Fiat	N/A	N/A	N/A	N/A	3	3	N/A
Mitsubishi	N/A	N/A	N/A	N/A	3	N/A	3
Cadillac	2	2	3	3	3	N/A	N/A
Chevrolet	2	2	1	1	1	1	3
Chrysler	3	3	3	3	1	1	3
Hyundai	6	6	1	1	1	1	1
Subaru	5	5	2	2	1	1	1

List of cars used to calculate the Lease APR (inferred interest rate) by quarter:

Car Manufacturer	Car Model Q2 2016	Car Model Q1 2016	Car Model Q4 2015	Car Model Q3 2015	Car Model Q2 2015	Car Model Q1 2015	Car Model Q4 2014	Car Model Q4 2013
	2016 Honda Accord Sedan LX CVT ($21,468)	2016 Honda Accord Sedan LX CVT ($20,496)	2016 Honda Accord Sedan LX CVT ($21,435)	2015 Honda Accord Sedan LX CVT ($20,800)	2015 Honda Accord Sedan LX CVT ($21,591)	2015 Honda Accord Sedan LX CVT ($21,160)	2015 Honda Accord Sedan LX Automatic ($21,014)	2014 Civic Coupe LX ($17,600)
	2016 Toyota Camry SE Sedan Automatic ($21,675)	2016 Toyota Camry SE Sedan Automatic ($21,920)	2016 Toyota Camry SE Sedan Automatic ($22,176)	2015 Toyota Camry SE Sedan Automatic ($23,088)	2015 Toyota Camry SE Sedan Automatic ($21,888)	2015 Toyota Camry SE Sedan Automatic ($24,088)	2015 Toyota Camry SE Sedan Automatic ($22,665)	2014 Toyota Camry L ($22,988)
	2016 Volkswagen Jetta Sedan S Automatic ($19.315)	2016 Volkswagen Jetta Sedan S Automatic ($17,653)	2016 Volkswagen Jetta Sedan S Automatic ($20,596)	2015 Volkswagen Jetta Sedan S Automatic ($22,700)	2015 Volkswagen Jetta Sedan S Automatic ($19,269)	2015 Volkswagen Jetta Sedan S Automatic ($16,038)	2015 Volkswagen Jetta Sedan S Automatic ($17,995)	2014 Volkswagen Jetta Sedan S ($14,999)
	2016 Chevrolet Cruze Sedan LS ($18,597)	2016 Chevrolet Cruze Sedan LS ($18,973)	2016 Chevrolet Cruze Sedan LS ($15,510)	2015 Chevrolet Cruze Sedan LS ($16,237)	2015 Chevrolet Cruze Sedan LS ($17,605)	2015 Chevrolet Cruze Sedan LS Manual ($17,858)	2015 Chevrolet Cruze Sedan LS Manual ($17,950)	2014 Chevrolet Cruze LS ($17,438)
	2016 BMW 3 Series -320i Sedan ($33,600)	2016 BMW 3 Series -320i Sedan ($35,375)	2016 BMW 3 Series -320i Sedan ($35,505)	2015 BMW 3 Series -320i Sedan ($30,850)	2015 BMW 3 Series -320i Sedan ($31,445)	2015 BMW 3 Series -320i Sedan ($32,950)	2015 BMW 3 Series -320i Sedan ($31,940)	2014 BMW 320i Sedan ($34,500)
	2016 Nissan Altima 2.5 S ($21,058)	2015 Nissan Altima 2.5 S ($21,801)	2015 Nissan Altima 2.5 S ($18,975)	2015 Nissan Altima 2.5 S ($20,758)	2015 Nissan Altima 2.5 S ($22,175)	2015 Nissan Altima 2.5 S ($22,995)	2015 Nissan Altima 2.5 S ($19,848)	2014 Nissan Altima 4dr Sedan I4 2.5 S ($21,500)
	2016 Hyundai Elantra SE Automatic ($16,250)	2016 Hyundai Elantra SE ($16,866)	N/A	2015 Hyundai Elantra SE ($16,483)	2015 Hyundai Elantra SE ($18,000)	2015 Hyundai Elantra SE Manual ($15,794)	2015 Hyundai Elantra SE Manual ($17,055)	2014 Hyundai Sonata SE 2.0T ($24,010)
	2016 Kia Optima LX ($21,370)	2016 Kia Optima LX ($22,945)	N/A	2015 Kia Optima LX ($19,440)	2015 Kia Optima LX ($18,390)	2015 Kia Optima LX ($19,485)	2015 Kia Optima LX ($19,208)	2014 Kia Soul Base (A6) 4dr H ($16,236)
	N/A	N/A	N/A	2015 Chrysler 200 Limited Sedan ($19,540)	2015 Chrysler 200 Limited Sedan ($20,460)	2015 Chrysler 200 Limited Sedan ($22,220)	N/A	2014 Chrysler 200 ($22,800)
	2016 Mazda3 i Sport ($16,781)	2016 Mazda3 i Sport ($18,000)	2016 Mazda3 i Sport ($18,583)	2015 Mazda3 4-Door i SV ($23,710)	2015 Mazda3 4-Door i SV ($17,115)	2015 Mazda3 4-Door i SV ($18,226)	2015 Mazda3 4-Door i SV ($17,040)	2014 Mazda 3 Sedan ($20,599)
	2016 Acura ILX 5-Speed Automatic ($24,500)	2016 Acura ILX 5-Speed Automatic ($25,614)	N/A	2015 Acura ILX 5-Speed Automatic ($31,656)	2015 Acura ILX 5-Speed Automatic ($25,995)	2015 Acura ILX 5-Speed Automatic ($23,987)	2015 Acura ILX 5-Speed Automatic ($22,512)	2014 Acura TL ($36,960)
	2016 Subaru Outback 2.5i ($27,953)	2016 Subaru Outback 2.5i ($24,161)	2016 Subaru Outback 2.5i ($26,817)	2015 Subaru Outback 2.5i ($28,043)	2015 Subaru Outback 2.5i ($25,278)	2015 Subaru Outback 2.5i ($27,802)	2015 Subaru Outback 2.5i ($22,500)	2014 Subaru Outback ($22,998)
	2016 Ford Fusion SE ($21,680)	2016 Ford Fusion SE ($23,895)	N/A	2015 Ford Fusion SE ($22,371)	2015 Ford Fusion SE ($23,370)	2015 Ford Fusion SE ($20,156)	2015 Ford Fusion SE ($22,474)	2014 Ford Fusion ($20,697)
	2016 Dodge Charger SE ($26,771)	2016 Dodge Charger SE ($27,490)	2016 Dodge Charger SE ($28,524)	2015 Dodge Charger SE ($30,190)	2015 Dodge Charger SE ($26,900)	2014 Dodge Charger SE ($26,453)	2014 Dodge Charger SE ($25,020)	2014 Dodge Charger ($27,015)
	2016 Audi A4 2.0T FWD ($37,500)	2016 Audi A4 2.0T FWD ($40,945)	2016 Audi A4 2.0T FWD ($38,495)	2015 Audi A4 2.0T FWD ($34,000)	2015 Audi A4 2.0T FWD ($36,000)	2015 Audi A4 2.0T FWD Multitronic ($36,000)	2015 Audi A4 2.0T FWD Multitronic ($32,982)	2014 Audi A4 ($35,253)
	2016 Infiniti Q50 3.7 ($32,500)	2016 Infiniti Q50 3.7 ($30,995)	N/A	2016 Infiniti Q50 3.7 ($34,310)	2016 Infiniti Q50 3.7 ($39,545)	2014 Infiniti Q50 3.7 ($34,680)	2014 Infiniti Q50 3.7 ($36,334)	2013 Infiniti G37 ($33,835)
	2016 Mini Cooper Hardtop ($26,220)	2016 Mini Cooper Hardtop ($21,373)	N/A	2015 Mini Cooper Hardtop ($25,053)	2015 Mini Cooper Hardtop ($18,921)	2015 Mini Cooper Hardtop ($21,000)	2015 Mini Cooper Hardtop ($23,550)	N/A
	2016 Volvo S60 T5 Drive-E ($31,000)	2016 Volvo S60 T5 Drive-E ($36,295)	N/A	2015 Volvo S60 T5 Drive-E ($37,054)	2015 Volvo S60 T5 Drive-E ($33,750)	2015 Volvo S60 T5 Drive-E ($37,397)	2015 Volvo S60 T5 Drive-E FWD ($33,163)	N/A
	2016 Fiat 500 POP ($19,350)	N/A	N/A	N/A	2015 Fiat 500 POP ($18,676)	2015 Fiat 500 POP ($17,495)	N/A	2014 Fiat 500 ($14,495)
	2016 Jaguar XF 3.5T Prestige ($54,700)	2016 Jaguar XF Premium ($55,091)	N/A	N/A	2015 Jaguar XF 2.0T Premium ($49,974)	2015 Jaguar XF 2.0T Premium ($47,625)	N/A	N/A
	N/A	N/A	N/A	N/A	2015 Mitsubishi Lancer GT ($17,320)	N/A	2015 Mitsubishi Lancer ES 5MT ($20,905)	N/A
	2016 Mercedes-Benz E350 Sedan ($52,282)	2016 Mercedes-Benz E350 Sedan ($52,256)	N/A	2015 Mercedes-Benz C-Class Sedan ($50,106)	N/A	2015 Mercedes-Benz E250 Blue TEC Sedan ($55,100)	2015 Mercedes-Benz E250 Blue TEC Sedan ($53,835)	2014 Mercedes-Benz C-Class Sedan ($39,286)
	N/A	2016 Cadillac ATS Sedan RWD 2.5L Standard ($43,800)	2016 Cadillac ATS Sedan RWD 2.5L Standard ($36,010)	2015 Cadillac ATS Sedan RWD 2.5L Standard ($30,132)	2015 Cadillac ATS Sedan RWD 2.5L Standard ($35,018)	N/A	N/A	N/A
	2016 Buick LaCrosse ($34,418)	2016 Buick LaCrosse ($39,310)	N/A	2015 Buick LaCrosse ($42,100)	N/A	N/A	2015 Buick LaCrosse ($29,665)	2014 Buick LaCrosse ($33,409)
	2016 Lexus ES 300 ($38,222)	2016 Lexus ES 300 ($36,115)	2016 Lexus ES 300 ($42,057)	2015 Lexus ES 300 ($35,940)	N/A	N/A	N/A	2014 Lexus ES 300 ($42,957)
	2016 Scion TC Manual ($19,364)	N/A	N/A	N/A	N/A	N/A	N/A	2014 Scion tC ($20,909)

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