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Car buyers noticing fewer zero percent APR financing deals

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Car buyers are noticing fewer 0% APR financing deals for both new and used cars.

Why? Edmunds, the online information spot for everything cars, says dealerships are now offering deals to buyers paying in cash. 

"The better economy is driving interest rates higher, and that's because the fed have elevated interest rates," says Tim Jackson, with the Colorado Automobile Dealers Association. 

Jackson believes there are always downsides for consumers in a thriving economy, and this is an example. 

Right now, the average APR is 4.21%. So, if your car cost $30,000 and you want to pay it off in 5 years, your monthly payment would roughly be $555. 

However, if you changed that APR to 0%, your monthly bill would be about $500. That's a $55 savings, which is a significant difference annually. 

If buying a new car is something you want to do, Jackson says there are a few things you can do to insure the best deal in this economy. First, keep a good credit score. Second, choose the vehicle with the best incentives.