Many auto manufacturers have brought back 0% financing, but the fact is consumers may get a better deal elsewhere. That’s right, in many cases, consumers can end up with a lower payment and save substantially over the life of the loan with traditional vehicle financing through a credit union or other financial institution.
Consumers need to do their homework. There are important things to consider when enticed by the 0% financing offers:
- The discounted dealer financing rates are often only available to those with the best credit records – one small credit blemish and the rate could go up.
- Some of the 0% financing offers are only available for up to a 36-month term. Shorter terms mean larger payments that many consumers cannot afford.
- Accompanying the 0% or low rate financing offers often is a requirement that a consumer must forego a rebate in order to receive the discounted rate. With many sizable cash rebates available now, it’s often better to take the rebate and apply it to the purchase price of the loan, then finance through Dutch Point Credit Union. In many cases, not only will the payment be lower, but the consumer will have substantial savings in the long run.
