Home » It’s Finally Cheap Enough To Finance A New Car You Might Actually Want

It’s Finally Cheap Enough To Finance A New Car You Might Actually Want

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The average transaction price for a new car in the United States almost reached $50,000 this year and has stubbornly refused to recede, hovering around $48,000 for most of 2024. Even with increased incentives, the lack of affordable financing has made it harder for people to buy cars. That’s changing just a little bit.

Have you ever gone to a wedding or any big event with a buffet and they clearly have a few extra chafing dishes at the end so they fill it with super random stuff? It starts out normal, with chicken, some form of green bean, a potato done in an extra fancy way, some kind of half-assed vegetarian option, and maybe a prime rib if the parents really want the wedding to stick. But then it’s pork egg rolls, eggplant parm, and saag paneer to round it out.

Vidframe Min Top
Vidframe Min Bottom

I’m not complaining! One of the best weddings I’ve ever gone to had the most chaotic food choices and it was a blast.

That’s The Morning Dump today. I have no big thought that ties everything together. First up is car financing, then some VW union news, followed by the revelation that the alleged UHC CEO killer worked in the car industry, and then I’ll share a news report about Stellantis that I did right before Tavares got canned.

Great Deals Abound For Certain Cars

Toyota Tundra 2022 1280 04

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I think the story of the car market this year has been one of rebounding inventory, stale products, too many electric cars, and not enough cheap financing. With the Fed finally lowering rates and the economy maintaining its steam, automakers are becoming more aggressive with car loans.

“Auto loan rates are declining, with the average used rate at 13.76% and new rate at 9.12%,” according to economist Jonathan Smoke at Cox Automotive, who adds that there’s a lot more low-interest lending as “lenders become more aggressive.”

This summer, the best financing was probably on cars you didn’t necessarily want. Assuming you had decent credit, there was a Nissan dealer somewhere willing to sell you a Rogue at a good rate. That’s still true today, as CarEdge points out, with Nissan offering 0% financing for 60 months.

2024 Mazda Cx 90 06

It’s not just Nissan in the game. Mazda has offered competitive financing deals all year and now could give you 0.9% financing for 60 months on any version of the very good CX-90, including the plug-in hybrid.

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If you want a pickup truck, both the Toyota Tundra and Ram 1500 are competing for the title of “the other truck” people buy. Toyota is doing 1.99-2.99% financing for up to 72 months as well as cash-on-the-hood. Ram is offering 15% off MSRP and 0.9% financing for 72 months on the 2024 Big Horn.

Even Subaru is in the game, with the slower-selling 2024 Outback getting 2.9% financing for 72 months. While I didn’t love my Forester, Subarus are still great cars, and the Outback, in particular, is a uniquely cool vehicle.

As always, these deals are reliant on region, dealer, and your own credit. The existence of all these deals, plus other factors, makes me think December car sales are going to be quite high this year. This is especially true if you’re willing to buy a 2024 MY vehicle and overlook the 2025 that just arrived on the lot.

Volkswagen And Union Continue To Talk, Continue To Make Little Progress

Volkswagen Plant Wolfsburg, Golf Production

I have a lot of dumb ideas for how automakers should act that I explain on this blog. Do I have an idea for how Volkswagen can extract itself from its current mess? I do not. Specifically, I do not know how to bridge the divide between Volkswagen and its union, IG Metall, in Germany.

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It turns out that I’m not alone. Volkswagen can’t figure it out, either. Here’s what the company is saying:

Arne Meiswinkel, chief negotiator at Volkswagen AG, said: “Today’s discussions were constructive, but we remain significantly apart on a solution. However, further collaboration is needed to identify additional financial opportunities. The goal remains to find short-term and sustainable measures to reduce costs in order to secure the company’s competitiveness in the long term.”

The employee side had submitted a counter-proposal in the previous round of negotiations, which signaled its openness to a financial contribution from employees. The company welcomed this step, but pointed out that this proposal was not sufficient to ensure a sustainable reduction in costs.

Basically, Volkswagen wants to close plants. The union wants to do anything but close plants. Volkswagen is not as competitive in Europe, North America, or just about anywhere as it once was. It probably needs to close plants to deal with its overcapacity.

Unfortunately, Volkswagen promised its workers years ago that it wouldn’t close plants and the German political system is partially built on VW employment in what used to be East Germany.

Good luck with all that.

There’s Always A Car Angle

Luigi Mangione
Screenshot: LinkedIn

I was tempted to avoid this one, but it’s news so I’ll do it quickly. As some of you have pointed out, the person suspected of killing United Healthcare CEO Brian Thompson in an assassination in New York City did work for the popular car-buying website TrueCar.

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According to Automotive News, the alleged killer was not working there when the murder occurred:

Mangione joined the vehicle listings company as a data engineer in November 2020, according to his LinkedIn page. But he hasn’t worked for the company in nearly a year, a TrueCar spokesperson told Automotive News via email.

“While we generally don’t comment on personnel matters, we confirm that Luigi Mangione has not been an employee of our company since 2023,” the spokesperson said.

And that’s enough of that.

What Happened To Jeep?

I did an interview with the non-profit news organization More Perfect Union about Carlos Tavares and Stellantis’ recent woes. You can see the video above (or linked here). I think it turned out well, though I did the interview before Tavares resigned, so that was fun timing.

Please enjoy me dressing like Sergio Marchionne. [Editor’s Note: Matt has pointed this out to me a couple times, and I think it may be the subtlest, nearly-imperceptible, deepest cut/in-joke that we’ve ever had here. I just thought Matt was wearing gonna-be-on-camera Matt clothes, but then again, I always mention Carl Sagan when I wear a turtleneck and blazer, so I’m really no better. – JT]

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What I’m Listening To While Writing TMD

The Foo Fighters video for “Big Me” is absolutely one of my all-time favorites. I was thinking about this recently after I saw this viral clip about Christopher Walken unwittingly mispronouncing the band’s name. Now my wife and I will sometimes blurt out “Foo Fighters”  in our worst Walken impression, just for lolz.

The Big Question

What’s the best deal you’ve ever gotten on a car?

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Huja Shaw
Huja Shaw
1 minute ago

“Auto loan rates . . . with the average used rate at 13.76% and new rate at 9.12%,” according to economist Jonathan Smoke at Cox Automotive

Thirteen and three-quarters to finance a used car?! That blows my mind.

Aaron
Aaron
13 hours ago

In 2019, I bought a new 2018 Buick TourX Essence (fully loaded, minus the panno roof), for just a hair over $28k or about $20k off MSRP. It had been a manager’s loaner, so it had about 3k miles but was otherwise perfect. Two years later, I traded it in for $26k. When you factor in the reduction on the taxable sale price for the next purchase, I basically drove the Buick for free for two years.

DadBod
DadBod
13 hours ago
Reply to  Aaron

I regret missing the boat on the Great TourX Selloff.

Huja Shaw
Huja Shaw
17 seconds ago
Reply to  Aaron

I’ll see the odd one for sale here and there and am shocked at the asking prices. Wagon people want their wagons.

EXL500
EXL500
14 hours ago

In 1971 16 year old me bought a 1963 Valiant convertible for $300. I sold it several years later for $350.

Unfortunately this was the height of my purchasing prowess. On the other hand I spent nothing on buying cars for 36 years living in Manhattan.

Shop-Teacher
Shop-Teacher
16 hours ago

Best deal I’ve ever gotten? My 2006 GMC Sierra crew cab, was under $22k out the door, brand new, including tax and an extended warranty long enough to insure I would never have to deal with repairs and payments at the same time. Since then, it has never left me stranded, nor have I ever had a repair bill on the high side of $600, with the exception of when I had the rusty rocker panels redone.

Kevin Rhodes
Kevin Rhodes
17 hours ago

Even at 0%, there are no new cars that I want currently that I would actually buy. Sigh. Closest is a Jeep Gladiator, which I have a completely irrational liking for, because I think they are both silly and I don’t have the slightest need for one – but I want one anyway. Just not enough to spend the money. Maybe when I can get a used one for couch cushion money I will indulge myself. Or if my Disco I blows up.

Best deals on cars:

  1. Bought a leftover ’08 Saab 9-3 SportCombi 6spd in the GM Saab firesale in ’09. $36K MSRP, paid $23K + TTL once all the discounts stacked up.
  2. Bought a technically “used” but 28 miles on it ’18 Fiata Veloce in ’19. Also $36K MSRP, paid $24K. CJD dealer had bought a bunch of ex motor show and dead dealer inventory cars from Fiat, my car had been on the stand at the Chicago Auto Show.
  3. My beloved ’11 BMW 328! wagon in unicorn RWD/6spd stick form. Not AS good a deal upfront, I got about $6K off between the dealer and the European Delivery discount, so paid about $39K for it. But who knew back then how RWD/6spd wagons would hold their value? Still worth every bit of $25K 14 years on, and it’s not depreciating at the rate I don’t put miles on it. Lives at my summer place in Maine, so at most 2K a year these days. Like a reunion with a long-away lover every year when I head up there in the summer.
  4. A better upfront deal was the ’16 M235i (6spd no sunroof) I did Euro Delivery on in ’15. MSRP $55K, I got about $11K off between the dealer and ED discounts. Cheap BMW financing too, IIRC, 2.99%, then refi’d with my credit union to even a little bit less than that. Cost me about ~$6K to drive it for less than two years, but worth every penny – especially the month in Europe in it with my Mom. Nine countries, vMax on the Autobahn a bunch of times. Wheeee! But I found it boring in the US, and when I took it with me to my new winter place in FL, I found out how useless a 2dr coupe is as an only car when you are setting up and renovating a house.
  5. Probably the absolute best deal on a new car that will ever happen (and one of my biggest regrets for not keeping). Bought a ’17 GTI Sport in the depths of Dieselgate. Paid $22K on a $30K MSRP, and traded the MUCH more expensive BMW M235i for it (and they gave me ALL the money in trade) so I didn’t even pay any sales tax on it. Then just shy of it’s 4th birthday, Carvana gave me $21K for it in the pandemic used car madness. $1K to drive a great car for four years and 21K miles – but I sure do wish I’d kept it. Sigh.

With the exception of my first new car, a leased ’02 Golf GLS TDI that I got raped on not knowing any better, I have never bought a new car for myself unless it was a screaming deal. If it’s not a deal, I just don’t need it that badly. Even the MSRP -rebate I paid for my mother’s Soul two years ago was a good deal for the time. And I needed to not have to deal with my mother’s car dilemmas, so it was worth every penny.

For used stuff:

  1. I needed something to daily between selling the Saab and taking re-delivery of the BMW wagon in 2011 – my other cars were a Saab 900CVT, and Alfa Spider, and my Triumph Spitfire. Bought a ’95 Volvo 945 with 220K on eBay for $1250. Spent maybe $500 sorting it out, drove it as a daily for six months, then as a spare car for another year, and sold it for $2500. Result! Even the A/C worked fine.
  2. My ’74-ish Triumph Spitfire. Bought it on my birthday in 1997 for $3500. Mostly restored other than the interior, hopped up earlier 1300cc motor with dual carbs, electric overdrive transmission, just a fantastic car. Like the BMW wagon, I plan to own it until I *die*. Left it to my best friend in my will, LOL.
  3. ’84 Jetta GLI – bought in college to replace my ’85 Jetta 2dr because I was sick of roasting with no A/C in the summer. $1850 with 150K miles on it. As reliable as an anvil, got me through the last 2yrs of undergrad, 3yrs of law school, and beyond. Sold it to my best friend, then we traded it back and forth for YEARS until the tinworm finally got it at 350K+. I would pay stupid money for another one today.
  4. That ’85 Jetta was a great deal too. Paid 4K for it when it was three years old and only 17K miles on it after my Volvo 242 blew up (NOT a great deal, that one). Cheap from a family friend who owned a bodyshop that sold a few used cars on the side. Bought as a package of “flood cars” so it had a salvage title, but it had to have been VERY minimally flooded. No issues other than a funky smell on hot days the first couple years, and the starter failed soon after I bought it – he replaced it for free. Put 100K on it, but it didn’t have A/C and I am a delicate flower. Sold this one to my best friend too, who sold it to another friend, who sold it to another one before it disappeared.

I have bought LOTS of used cars that in hindsight were not good deals, of course.

Baron Usurper
Baron Usurper
15 hours ago
Reply to  Kevin Rhodes

Had a Gladiator for 2 months while on a job assignment. Very fun to drive but chugged gas and the driver’s side was hella cramped. Would not purchase.

Kevin Rhodes
Kevin Rhodes
15 hours ago
Reply to  Baron Usurper

I had one as a rental and loved it. Just not quite enough to open my wallet given what they cost, given I already have a 4×4 and have no need whatsoever to replace it. If they were <$30K for a base model with a hardtop and a stick, maybe. If they made one with two doors and a more useful length bed, even more likely. A modern “Extra cab” Ranger is what I really want, not a four door sedan with a back porch.

Compared to the ’95 Land Rover Disco I have now for that position in my fleet a V6 Wrangler might as well be a Prius, and I wouldn’t drive it enough to care anyway.

One More Last Chance
One More Last Chance
18 hours ago

My best deal was when I had an ’80 something VW Rabbit that blew it’s head gasket. The mechanic offered me $350 or I could pay him $1000 plus for repair. I took the money, walked out to the road and put out my thumb. The guy who picked me up said his daughter had a car that she wanted to sell. So we swung by his house and there was a ’84 Chevy Citation. I offered the daughter the $350 and she took it. I left home in a red Rabbit and came home in a red Citation. I don’t think my girlfriend even noticed. The Citation turned out to be a pretty good car. I drove it for a couple years and sold for more than I paid.

OrigamiSensei
OrigamiSensei
18 hours ago

You know, I got some pretty good lease deals in the 90s on my Jeep Grand Cherokees and I picked up my ’88 Jag for $5600 in 2017 in really pristine shape. However, I kind of think my best deal ever was on my 2018 Ford Fiesta ST.

The car’s MSRP was $23,400 or thereabouts and they knocked $6k off of sticker; even in the high tax and registration fee environment of California I got the car out the door for $19,500. I’ll always remember the sales guy expressing surprise – “you sure you want the Fiesta? I mean, your credit would let you buy anything on this lot except for the GT.” No, I really wanted the FiST.

Despite Ford’s reputation for quality being job 12 or whatever I have put nothing but regular maintenance and consumables into the car for over six years. The worst problem I ever had was having to turn the car off and on again to reset the SYNC system, and that only happened once. Meanwhile, the ability to drive it like a maniac without getting traffic tickets has made it the perfect stealth hooligan car and I love it.

Kevin Rhodes
Kevin Rhodes
16 hours ago
Reply to  OrigamiSensei

My old man got one of those cheap lease deal Cherokees. A ’92 Larado in that dark green with silver that so many of them were. He got it because a nephew got one and was raving about what a deal it was. I LOVED that thing as a college kid. When the lease was up after two years, he got one of the very first Ford Windstars. Lovely, but what an epic turd it ended up being mechanically. He should have kept the Jeep.

I looked at and liked the FiST, but bought a Fiat 500 Abarth. It was just more fun, and even cheaper. But that was as a 4th car just for fun – for a daily for sure the Ford would be a far better choice. Loved that silly little thing though, another car I wish I still owned. Siren song of doing European Delivery again had me selling it to order an M235i. That I didn’t love.

OrigamiSensei
OrigamiSensei
13 hours ago
Reply to  Kevin Rhodes

The residual values were set so high on those Grand Cherokee leases that they were a screaming deal payment-wise, but it would have been utterly stupid to buy out the leases despite how much I loved those cars. I was leasing at the time because my company made that the attractive option.

Kevin Rhodes
Kevin Rhodes
13 hours ago
Reply to  OrigamiSensei

Of course, that is how they made them so cheap. Classic subventing of the lease – and I am sure the money factor was LOW as well. But he still would have been better off buying out the Cherokee (or buying another one) than buying that Windturd. Great design for the day, woefully executed.

Cerberus
Cerberus
18 hours ago

No way that’s the guy who whacked that parasite CEO! He was hanging out with me the whole day. We were just hiking in the woods, so there’s no one else to corroborate, but I’ll swear to it in court.

A number of my cars were good deals:

’84 Subaru: $500 for 3 years of continual abuse. So cheap, it makes the manual ’83 sedan seem like a rip off at $1200, which it wasn’t.

’90 Legacy 5MT FWD wagon $3200. Bought it at 107k and beat the hell out of it for about 165k more miles. It’s the one car I wish I could have kept forever, but rodents and cancer prevented that.

’12 Focus SE 5MT hatch for a couple hundred over $20k. Corolla reliable for over 200k miles until assholes crashed into it.

’16 Focus ST for a couple hundred over $23k. Just as reliable as the SE until the Ecoboom problem resulted in burning coolant at about 180k.

’22 Toyota GR86 6MT OTD for under $30k, exactly what I wanted.

Njd
Njd
18 hours ago

Best deal I’ve ever gotten on a car was my second saab 9-5. 2004 Arc (uncommon luxury trim) wagon. Bought it in I think 2016 from friends of my parents with 110k on the odometer for for a thousand bucks. I loved that car.

Spikersaurusrex
Spikersaurusrex
19 hours ago

The best deal I ever got on a car was my Maverick. I ordered it and when I picked it up I paid MSRP. This was when they were routinely selling for $5K+ over MSRP.

Best deal I ever gave on a car was when I sold my Yaris to a friend for $6K. He drove it two years and sold it for $6500.

Njd
Njd
19 hours ago

The dealer I got my Maverick from told me that they almost hoped people would back out of their Maverick orders because they had no way to get inventory and that way they could mark them up. They made it sound like Ford was very adamant that people placing orders should pay MSRP, and it’s not like an order was really all that much work for the dealership anyway.

Spikersaurusrex
Spikersaurusrex
19 hours ago
Reply to  Njd

Yeah, my dealer gave me three days to take delivery after they notified me. If I had not taken it, they would have slapped 5 – 10K on it and sold it the next day.

Njd
Njd
19 hours ago

That’s crazy. Mine didn’t do anything like that, in fact they forgot to tell me when it was ready for a couple days.

Bags
Bags
18 hours ago

I had a coworker who ordered an F-250 and they told him the same thing. It got delivered the day after he had knee replacement surgery so it was a whole situation for him to get down there and sign the papers when normally they wouldn’t have given a shit. But at the time inventory was low because of the chip shortages (this was when they were reporting 10s of thousands of trucks sitting in holding lots waiting for parts) and this was probably the only XLT they’d seen in months so they knew they could mark it up and sell it in an instant when everything else on the lot was Platinum King Ranch Offroad FX-4 models.

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