The surprising spate of low interest offers are all designed to give sales a much-needed lift on flagging models.
There’s a battle for car sales, and buyers can benefit from lower finance rates.
Renault’s announcement followed hot on the heels of Holden’s offer of 0.5 per cent, while Honda’s 0 per cent and Nissan’s 1.4 per cent have been running for a few weeks (the Nissan one just up from the 1 per cent that near doubled their sales in July).
There are conditions and restrictions. Renault’s offer starts August 10 and finishes on September 30, and is for a three-year term but only for the Megane hatch, Fluence and Latitude sedans and Koleos SUV – but also get $199 capped-price servicing for three years. Other models in the range are still being offered with a 2.9 per cent rate.
Holden’s offer of 0.5 per cent for a three-year loan will run for just one week from August 9-15, but the eligible models exclude the Cruze CD, Cruze Equipe and 4x2 Colorado utes. Buyers will not have to tender a deposit, but Holden says other terms and conditions will be revealed when the offer is activated tomorrow.
Nissan’s 1.4 per cent deal runs until the end of August and covers the Maxima sedan, 370Z sports coupe, and Pathfinder and Murano SUV models. Honda’s 0 per cent is also deposit-free but is only on its hybrid cars: the Wheels Car of the Year-winning CR-Z, Insight and Civic Hybrid.
The surprising spate of low interest offers are all designed to give sales a much-needed lift on flagging models, and echoes the strategies that emerged in the US during the 2008 Global Financial Crisis. In that market, the interest rates have continued to stay fiercely competitive - and with Australia’s market just as hungry for sales, there’s reason to think we might see more low finance offered here.