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Is 0% Dealer Financing Too Good To Be True?

You've seen 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! But 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 on shorter terms which increase your monthly payment.
  • The offer is often only on “selected” models, which are usually not the most popular.
  • These offers are often available only to those with the best credit history.
  • You may be required to pay full sticker price for the vehicle and give up any manufacturer and/or dealer rebates. Losing the rebate may mean thousands of dollars are added onto the price of the car resulting in higher payments.

Read this example1:

  • A 3 year loan on an $18,000 vehicle at 0% = $18,000 in total payments over the life of the loan
  • A 3 year loan on $18,000 vehicle at 3.00% minus a $2,000 manufacturer rebate = $16,752 in total payments over the life of the loan (that’s a total savings of $1,248!)

Take some time to read the fine print and get educated before you shop. The tempting offer is often a way to simply get buyers into the dealership. Remember! You're often better off skipping the tempting low dealer rate, taking the manufacturer/dealer rebate and going through NIHFCU! Call us today so we can help you save!

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Email: ConsumerLoans@nihfcu.org

Example is used for illustrative purpose only. The rate used may not be available to every buyer.