0% Financing Myth
When buying your new car, you may be offered 0% financing, which sounds great! You think that’s going to save you a lot of money … but will it really??
Remember, the interest rate that you receive when financing a new or used car varies depending on your own credit rating and the term (length) of the loan.
In many cases, to receive the 0% interest rate offered you must agree to a shorter loan term and have A+ credit. If you agree to a shorter loan payment period or you don’t qualify for the 0% interest rate offer this will in turn make your payments higher than what you originally planned for or expected. Additionally, you may be limited in your choice of vehicles.
If you do qualify for the 0% financing offer, and you like the vehicle they are offering, sometimes it is better to take the rebate offered and not the 0% financing offer.
With financing from First Castle Federal Credit Union you choose the vehicle you want, make the best deal, and select the term of the loan.
So, when deciding on whether to take the 0% offer or a rebate keep the following chart in mind.