| Read the fine print! Many times,
0% financing restricts the length of months you can finance your
loan to 12 – 36 months, which significantly increases your
monthly payments.
Other items to aware of:
- only consumers with “excellent” credit ratings qualify;
- a 10% down payment (or more) may be required;
- trade-ins are restricted.
Most of the time you are better off taking the rebate that the
dealership is offering and financing through your credit union.
Below is an example of how you can save in such a situation:
| |
Manufacturer’s Financing
0% APR for 36 months |
Allegacy Financing 4% APR for
48 months |
| Vehicle selling price |
$18,000.00 |
$18,000.00 |
| Manufacturer’s rebate |
-0- |
$2000.00 |
| Amount financed |
$18,000.00 |
$16,000.00 |
Interest over
Loan period |
-0- |
$1340.50 |
| Total Cost |
$18,000.00 |
$17341.00 |
| Monthly payment |
$500.00 |
$361.00 |
By financing through Allegacy Federal Credit Union, you save $139.00
in monthly payments and $658.00 over the length of the loan period.
As you can see, you would certainly save money by taking advantage
of the manufacturer’s rebate offer and financing your vehicle
through the credit union instead of taking the 0% financing offered
by the dealership.
|
