Car Shoppers Find Fewer Zero-Percent Financing Deals in August, According to New Edmunds Analysis

Car Shoppers Find Fewer Zero-Percent Financing Deals in August, According to New Edmunds Analysis

Labor Day car bargains may not be as plentiful this year as automakers hesitate to ratchet up incentives to move building inventory

SANTA MONICA, CA — September 01, 2017 — Although new vehicles are sitting on dealer lots longer than at any point since July 2009, incentives — particularly tempting zero-percent finance deals — have been slow to materialize in August, according to a new analysis from Edmunds, the leading car shopping and information platform. Though days to turn now averages 77 days — two days more than in July — incentives in August were basically flat compared to last month. Automakers have also been stingy with financing deals; only 10 percent of loans in August had zero-percent APRs, compared to 15 percent of loans last August. The average interest rate on a new-car loan was also up 2 percent in August, compared to July.

"Labor Day weekend usually brings in nearly a third more buyers than the typical first weekend of the month, so this is critical opportunity to make a dent in inventory," said Edmunds Executive Director of Industry Analysis Jessica Caldwell. "Given the state of the market, we would usually expect automakers to pull out all the stops to get shoppers into their showrooms, but based on what we saw in August, it's not a sure thing."

Edmunds analysis shows inventory of 2017 model-year vehicles is particularly plentiful on dealer lots, even as 2018 models begin to arrive in showrooms. Edmunds estimates that only 8 percent of new vehicles sold in August will be 2018 models, while in August 2016, 17 percent of vehicles sold were from the new model year.

"Car shoppers now are savvy enough to know that you can get the best deals on outgoing model-year vehicles," Caldwell said. "In many ways it's a buyer's market, and they're not going to purchase if they think there's a chance a better offer could come along in the near future."

More insight into recent auto industry trends can be found in the Edmunds Industry Center at

August 2017 Change from
August 2016
5-Year Change
Loan Term 69.3 months 0.8% 6.8%
Monthly Payment $507 0.6% 10.1%
Amount Financed $30,473 0.2% 15.5%
APR 4.8% 10.9% 17.8%
Down Payment $3,667 5.9% 9.1%

August 2017 Change from
August 2016
5-Year Change
Loan Term 66.7 months -0.1% 5.5%
Monthly Payment $382 1.4% 5.1%
Amount Financed $21,091 0.9% 11.2%
APR 7.5% 2.6% -6.1%
Down Payment $2,480 7.2% 14.7%

About Edmunds
Edmunds is the leading car information and shopping platform, helping millions of visitors each month find their perfect car. With products like Edmunds Your Price, Your Lease and Used+, shoppers can buy smarter with instant, upfront prices for cars and trucks currently for sale at more than 13,000 dealer franchises across the U.S. Edmunds' in-house team of unbiased car shopping experts provide industry-leading vehicle reviews and shopping tips, as well as welcome all car-shopping questions to the free Shopper Advice line at 1-855-782-4711, via email at, via text at ED411 and on Twitter and Facebook. The company is regarded as one of America's best workplaces by Fortune and Great Places to Work. Edmunds is based in Santa Monica, Calif. and has a satellite office in downtown Detroit, Mich.

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