Low-Rate or 0% Financing
Zero percent financing sounds like a great deal. After all, who wouldn’t want to pay no interest on a vehicle loan? But these offers often come with restrictions:
Shopping for a new vehicle? Manufacturers and dealers often offer incentives like 0% or low-rate financing or cash back rebates. Both can save you money, but which offers the best deal? The answer may surprise you!
- Excellent credit required: Only buyers with strong credit histories may qualify.
- Shorter loan terms: Higher monthly payments may be required.
- Limited vehicle selection: Offers may apply only to certain makes and models.
- No cash rebate: Choosing promotional financing may mean giving up a manufacturer’s cash back incentive.
Manufacturer Cash Rebates
Cashback incentives can lower the amount you need to finance. For example, if you’re purchasing a $35,000 vehicle with a $5,000 rebate, you could apply that rebate toward your purchase and finance just $30,000, assuming no other costs or down payment.
Here’s where SFFCU comes in. Taking the cash rebate and financing through SFFCU could save you more than choosing the dealer’s promotional rate. Even with interest, a smaller loan amount may result in lower overall costs.
Which Option Is Right for You?
Don’t assume low-rate financing is automatically the best deal! Compare the total cost of financing, not just the interest rate or monthly payment. Here’s how:
Use the “How much will my loan payments be?” calculator to crunch the numbers.
Run two scenarios and compare.
- Scenario 1 (Cash Back): Add the rebate amount into the Down Payment Amount field (or subtract it from the Purchase Amount) and use the SFFCU interest rate.
- Scenario 2 (Low Rate): Enter the standard Purchase Amount and down payment, then use the dealer or manufacturer promotional rate.
SFFCU offers competitive vehicle loan rates, including flexible financing terms up to 84 months, and convenient payroll deduction for State Farm employees.
Before you sign at the dealership, compare your options with SFFCU. You might be surprised by how much you could save!