Lowest Car Loan and Lease Rates for May 2015

Timing is a big factor when buying a new or used car. Memorial Day weekend combined with some of the lowest interest rates and lease money factors in history make May 2015 a good time to get a great deal for anyone in the market to buy a car.

Even though people are keeping their vehicles longer and most people don't buy a car unless they absolutely need to. The Federal Reserve has provided car shoppers record-low interest rates and manufactures are doing their best to keep 2015's surging sales on an upward swing. There may not be a better time to borrow money to buy a car, especially a new one.

Over the past few months the average new and used car price has been going up. However, manufacturers and lenders are doing a great job keeping the monthly payments on these vehicles low and affordable. Experian stated, total car loans in the first quarter of 2015 were up 11 percent from 2014, setting a new record of $905 billion.

This is good news for our economy, but as we all know, history repeats itself and these low rates won't be around forever. The Federal Reserve has stated that rates will most likely start to move up sometime later in the year.

Take a look at which automakers are providing the lowest interest rates and lease money factors on our chart below:

Lowest Car Loan and Lease Rates for May 2015

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Car Manufacturer Financing APR May 2015 Lease APR (inferred) May 2015
Ford 0.00% 2.81%
Toyota 0.00% 2.87%
Cadillac 0.00% 3.04%
Volkswagen 0.00% 3.89%
Nissan 0.00% 4.57%
Kia 0.00% 7.54%
Dodge 0.00% 10.86%
BMW 0.90% 3.35%
Honda 0.90% 4.77%
Average 1.58% 4.92%
Volvo 1.69% 2.95%
Acura 1.90% 3.84%
Infiniti 1.90% 3.84%
Mini 1.90% 6.60%
Chrysler 1.90% 9.15%
Hyundai 2.59% 3.62%
Audi 2.90% 2.73%
Jaguar 2.90% 6.87%
Mitsubishi 2.99% 3.50%
Chevrolet 2.99% 5.28%
Fiat 3.90% 3.12%
Mazda 3.99% 9.21%

Methodology

Rates above are best case scenarios for car buyers with excellent credit. The actual rate you qualify for is based on several factors such as location, income, credit worthiness, promotional programs, and even your negotiating skills. Finance and lease rates are subject to change and vary by region. Always confirm with your dealer what interest rates are available in your local area.

I've always advised people to get a pre-approved car loan before contacting a dealership. You can use your pre-approval as leverage to negotiate a better interest rate while at the dealership. This will keep a dealer more honest when presenting you finance rates and terms. It will also protect you from becoming victim of any car dealer financing scams.

Read my car financing tips here >>

If you're considering the purchase of a new car, I recommend using a free online referral service such as Edmunds and TrueCar to guarantee you pay the lowest price. These services will tell you what others are paying for the vehicle you're considering in your local area and which dealers give the greatest discounts.