Loans & Credit Cards
Is 0% Dealer Financing Too Good To Be True?
You’ve seen and heard the dealer ads that go something like this…”Come in today and get 0% financing (or some other amazingly low financing) on your purchase.”
Sounds great! What could be wrong with that? Plenty!
Once you get all the details, you’ll find that such offers are not always the great deals they would like you to believe them to be. Consider the following:
- These offers are often available only to those with the best credit history. One small blemish and your rate goes up.
- These offers are often available only on shorter terms (i.e., 36 months or less). That increases your monthly payment.
- The rates are often offered only on “selected” models, which are usually not the most popular.
- Often, getting 0% financing may depend on your willingness to pay the full sticker price of the vehicle. And, paying the full sticker price, means your taxes will also be higher!
- To get 0% financing, you’ll likely be giving up the manufacturer and/or dealer rebate that you would otherwise be eligible to receive. Losing the rebate may mean thousands of dollars are added onto the price of the car resulting in higher payments.
- Only a small percent of people applying for 0% financing actually qualify for it.
