Is 0% Financing Really a Good Deal?
Consider the Facts
Zero percent financing and low dealer promotional rates can seem great if you’re looking to save money when buying a car. But dealer financing offers are often not as they seem. Here are some key points to keep in mind when considering a dealer rate incentive:
- Low or 0% rates may only be offered to buyers with nearly perfect credit.
- Terms are often shorter, such as 24 to 36 months, as opposed to the average 60 month loan.
- Incentives may only apply to slower selling models and not the popular models you may want.
- There may be hidden application or pre-payment penalty fees.
- You’ll often save more by taking a cash rebate over zero percent financing.
So, the next time you see a zero percent car financing offer, remember the facts and get pre-approved for a vehicle loan before you shop. You won’t be distracted by deceptive financing offers so that you can focus on what’s important - getting a great deal on your car.
To apply for an auto loan, go to Online Banking, click All Services and select New Loan Application. You can also call us at 800-222-1226 or visit one of our branches.