0% Auto Financing Facts
If you have shopped for a new vehicle recently, you have probably come across advertisements for 0% financing. While 0% sounds very inviting, there are a few things that you should consider before signing on the dotted line.
- If you are given a choice of 0% financing, or a factory rebate; you might actually save more money by taking the rebate and applying it against the purchase price. Then, finance the remainder taking advantage of the credit union’s already low rates and you may save a bundle. Affinia loan officers will be more than willing to help you do the math to find out which deal is better for your wallet.
- 0% deals are often applicable only on certain makes and models. Do you really want to spend more on a higher priced model just to get 0%? Affinia can offer you a great rate on the car you really want. Consider getting pre-approved for a loan at the credit union before you shop. It is easier to say "no" to deals that are not what you really want, when you have a plan in place.
- Many 0% deals are restricted to shorter loan terms, resulting in higher monthly payments. At Affinia, our terms are flexible, giving you the opportunity to manage your payments comfortably.
- Consumers with less-than-exemplary credit usually will not qualify for 0% financing. According to a Consumer Task Force for Automotive Issues survey, fewer than 10% of those who want to take advantage of this offer actually get 0% loan rates. Once again, it’s better to be prepared with a pre-approval in your pocket, so that you know what your credit union rate would be. If the 0% offer leaves the table, you’ll have a sound back-up plan.
The bottom line is to "Stay in control." It is easy to get excited by the look and smell of a new car, especially with the lure of 0% financing. Remember going in that you are the one paying the bill and you need to compare the facts before making a final decision. Pre-approval is the best way to be prepared for a win/win deal. You deserve that new car and you deserve to know that you got the best deal available. Please don’t just test drive the car, always test drive the deal with your Affinia loan officer.
