Huntington Bank Says Your Trade-in Can Help You Get Better Rates And Shorter Terms On New Vehicle Loans
Huntington outlines financial tips for buying a new vehicle
COLUMBUS, Ohio, March 15 /PRNewswire-FirstCall/ -- Last year's deep downturn in auto sales could be consumers' silver lining this year for finding new car and truck financing with better interest rates and shorter terms. That's according to the experts at Huntington Bank, which ended 2009 as the top auto lender in Ohio. The bank's Auto Finance & Dealer Services unit also was awarded a 2009 Auto Finance Excellence Award by Auto Finance News. The award is presented annually to companies that have achieved notable success or contributed greatly to the auto finance industry.
"In 2009, sales of new automobiles topped 10.4 million vehicles, the worst year for auto sales in 30 years," said Nick Stanutz, senior executive vice president and auto finance and dealer services group executive. "This compares with sales of almost 17 million new vehicles each year during the previous decade.
"With fewer consumers trading in cars and trucks in 2009, the number of used vehicles available for resale has dropped," added Stanutz. "Today, most people can get more money for their trade-ins, which means they won't have to borrow as much on a new car or truck, and they can lessen their monthly payments. In short, more people have a better equity position than ever before."
As an example, Stanutz said that a trade-in a year ago that brought $10,000 could now bring up to $12,000. With the $12,000 trade-in on a $25,000 vehicle at an interest rate of 5%, the monthly payment would be $246 vs. $283 if you only had $10,000 on a trade-in.
Sales of new vehicles in the United States are expected to see a slight uptick in 2010, thanks in part to pent-up demand from consumers and a brightening economic picture. But even with a glimmer of better economic news around the corner, Huntington suggests buyers consider the following tips:
1. You are in the driver's seat of your trade-in: Surf used vehicle valuation Web sites and speak with several dealers about the best price for your trade-in. Once car and truck sales pick up, you may not have the opportunity for quite a while to have so much negotiating power with your used vehicle. 2. It's not your father's fuel bill:Analysts are predicting higher fuel costs during the coming summer travel season. Although automobile manufacturers continue to increase fuel efficiency, the results do vary by model. So make certain you are looking at a vehicle that you can afford to drive everyday for several years. 3. How low can they go?:With the Federal Reserve riding herd over interest rates to help stimulate the economy, interest rates on auto loans and leases are at historic lows. So if you have put off buying a new vehicle, now may be the time to look. But be sure to shop around for the vehicle and interest rate that are right for you. 4. Lesson learned:The U.S. savings rate increased during the recession with many Americans vowing that they had learned to be more cautious. If you want to be prudent when buying a new vehicle, ask yourself how much of a monthly payment you can comfortably afford. Make certain you are taking into account all of your monthly expenses and any commitments you have made to put money aside each month in savings. 5. Take your time: According to the National Automobile Dealers Association, the average cost of a vehicle in this country is $28,000—one of the most important investments of your lifetime.
Huntington Bancshares Incorporated (Nasdaq: HBAN) is a $52 billion regional bank holding company headquartered in Columbus, Ohio. Through its affiliated companies, Huntington has been providing a full range of financial services including checking, loans, savings, insurance and investment services to customers for 144 years. Huntington has more than 600 banking offices and offers retail and commercial financial services through its 600 banking offices; online at huntington.com; through its telephone bank; and through its network of over 1,300 ATMs.
SOURCE Huntington Bancshares Incorporated
Released March 15, 2010