Automotive financing has shifted dramatically, with loan terms now commonly exceeding traditional 36- and 48-month periods. Extended terms of 60 to 72 months at rates as low as 2% or less are becoming standard across all vehicle types and manufacturers. Several automakers are pairing these terms with substantial rebates, potentially reducing purchase prices by thousands of dollars. This trend is driven by manufacturers’ desire to maintain sales volume in a competitive market where consumers are sensitive to monthly payment amounts.
Before diving into specifics, it’s crucial to understand the broader landscape. The current environment favors longer loan terms and lower rates, making vehicle ownership more accessible but also increasing the total cost over time.
Standout Deals by Manufacturer
Here’s a breakdown of the most competitive offers available in December 2025:
Mazda: CX-5, CX-50, and 3 Hatchback
Mazda is offering 0.9% APR financing for 60 months on select models. The CX-5, a popular choice, benefits from both the low rate and rebates ranging from $750 to $1,250 depending on the trim. The CX-50 and 3 Hatchback share the same interest rate but do not qualify for the cash incentives. However, if financing is pursued through other lenders, Mazda will offer $1,000 off the CX-50 and $2,000 off the CX-5 and 3 Hatchback.
Ford: 2025 Transit
The Ford Transit stands out with an exceptional offer: 0% APR for 60 months, combined with deferred payments for the first 90 days and a $4,000 rebate. This makes it an attractive option for businesses or individuals needing commercial-grade transportation. Ford’s aggressive pricing reflects the high demand for vans, where competition is less intense.
Lucid: 2026 Air
Lucid is making its luxury EV more accessible with 0.99% APR financing for 72 months or rebates between $12,500 and $19,000. The Air Pure and Touring trims receive the larger discount, while the high-performance Grand Touring also qualifies. The company is also offering additional incentives for trade-ins from competing brands. This strategy aims to compete with established luxury automakers and increase EV adoption.
BMW: Multiple Models
BMW is providing low interest rates, long loan terms, and significant rebates across nine models, including the X3, X7, iX, i5, i7, 2-Series Gran Coupe, 5-Series, 8-Series, and M8. The X3 and X7 feature the lowest rate of 0.9% for 60 months, while the 2-Series Gran Coupe offers a 72-month term at 1.99%. Loyalty credits further enhance savings, with the M8 offering up to $9,000 off MSRP and the i7 potentially saving buyers $13,500.
Rivian: R1S and R1T
Rivian is offering 0.99% APR for 60 months on the R1S SUV and R1T pickup. Despite EV depreciation concerns, these models have held their resale value better than many competitors. This makes financing a viable option for buyers seeking a high-end electric vehicle.
Infiniti: QX60 and QX80
Infiniti is promoting its Sport trims of the QX60 and QX80 with rates between 0.9% and 1.9% for 60 months, alongside rebates of $6,000 to $9,000. The QX60 Sport offers the lower interest rate, while the QX80 Sport provides a $9,000 discount.
Dodge: 2025 Charger Daytona EV
Dodge is offering 0% APR for 72 months and a $7,750 rebate on the Charger Daytona EV. This aggressive pricing is likely a response to declining EV sales and the impending return of the Hemi engine.
Toyota: 2025 Tundra Hybrid
Toyota is offering 0.99% APR for 72 months with a $3,000 rebate on the Tundra Hybrid. This deal applies to iForce Max trims with the twin-turbo V-6 hybrid powertrain.
Conclusion
December 2025 presents a unique opportunity for car buyers. Manufacturers are aggressively incentivizing purchases through extended loan terms, low rates, and substantial rebates. These deals are driven by market conditions and competition, making it a favorable time to finance a new vehicle. However, buyers should carefully evaluate the total cost of ownership, as longer terms can increase overall expenses.
