0% Financing Is Not Always The Deal It Seems

No doubt you've seen offers for zero percent financing at auto dealerships.  They are the No. 1 "come-on" right now because dealerships know similar ploys worked so well earlier this decade.


Be honest with yourself. If your credit is not perfect, you shouldn't go into that dealership expecting to qualify for zero percent.  You’ll be turned down and then – and here’s the part the dealerships love! – talked into letting the finance department write a loan for you at above market interest rates.


Dealers love “payment buyers” who can only afford to pay X dollars per month.  By taking that approach to purchasing, you lose sight of the total cost of the loan over its lifetime.


You actually end up burning yourself twice: First because you don’t get zero percent, and second because you walk out with a high-interest loan.


When it comes to taking a rebate or taking zero percent interest, taking the rebate is almost always the better deal.  That way you are financing less which leads to less interest paid!  You can use this calculator to be sure which is the better deal.


So, where should you get that auto loan?  Your Credit Union.  On average, credit union car loans are 1.5 percent below the banks and 4 points below what you’d pay at a dealership!


Once you have arranged your financing with your credit union, you are ready to work a deal on the auto of your dreams.  And your credit union is ready to back you with financing.


Contact Lizette, Cassie, or Kay in Rome, at 706.232.6871 or Connie or Kay in Carrollton, at 770.214.1050 or Sue at Plant Bowen, at 770.606.6123 for more information on all of your credit union's loan products!




*Subject to credit approval

** Rates vary and are subject to change without notice

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