First of all we'd like to state the obvious: Gasoline prices were low. Although OPEC’s September announcement to restrict oil production hiked pump prices during the final quarter, the nationwide average price for regular has yet to top $2.40 per gallon. Back in February 2016, retail prices fell as low as $1.72. Low interest rates continued to keep financing and leasing attractive.
Through the third quarter of 2016, 86 percent of all new-car buyers financed in some capacity, at average rates of 2.6 percent and 3.6 percent for the two top credit tiers, and the national average was 4.7 percent. New-car loans averaged just over $30,000, financed over 68 months, both on par with 2015. Leasing represented nearly 30 percent of all retail sales (up from 27 percent in 2015) as average monthly payments dropped $90 compared with the third quarter of 2015.
According to the U.S. Bureau of Labor Statistics, through November 2016, car buyers paid 11 percent less for leased cars than a decade earlier. In September, incentives averaged a record $3923, up from $3753 at the end of 2008, averaging about 73 days’ supply as of December 1, compared with 65 days in 2015. By the end of December, dealers had cleared inventory down to about 62 days. This would appear to portend even greater incentives and better deals in 2017. Unless, of course, you’re hunting for hot models like the BMW M2.