If you're in the market for a new car, now may be the time to trade in your clunker. Car loans aren't as rock-bottom as mortgage loans, but manufacturers are offering plenty of incentives, such as special financing options. Still, at press time the average 60-month new-car loan was around 4.4 percent, according to Bankrate's weekly survey, and some car loans are even cheaper.
"This is where a person with good credit can use that credit as a force multiplier," McFarlane says. "Stretch out your financing dollar for as long a term as possible, especially since inflation can't be postponed forever."
If you are still paying off your current car, you may want to consider refinancing the remaining car loan at lower and more favorable interest rates.