Wauna Federal Credit Union

Is 0% Financing A Good Option?

0% Financing? It Often Has Zero Advantages!

Below-market financing offers from auto makers may appear to be tempting, but it is always going to affect the price you ultimately pay for the vehicle. In fact, choosing the special financing instead of the rebat can result in paying 10% to 20% more in the end! Plus, higher down payments and pre-payment penalties are often buried in the special financing terms.

But that is just one of the drawbacks to below-market finacing. Super lwo rates are usually offered for limited terms, such as 14 or 36 months. An $18,000 to $20,000 loan for such a brief term is going to result in monthly payments in the $600 to $800 range. On top of all that, dealers generally offer special financing only on a limited selection of vehicles. So, you could get stuck with unwanted features and options. Take the Rebate and Run!

Special financing is nearly always offered in lieu of the factory rebate. So when you choose the unrealistically low rate, you are instantly giving up a rebate - which can be $2,000 or more! Instead, take the rebate... and run to WFCU for our great low rates and extended financing terms. You pay less for the vehicle and you can choose a payment term that fits into your budget. According to a survey by Bankrate Monitor, credit unions consistently offer the best auto financing rates and terms among all financial institutions.

Always read the fine print in any auto-finacing contract and fully understand all the terms. If you need help calculating the benefits of taking a below-market financing rate or a rebate, call or stop by the WFCU branch nearest you. We can give you loan payment projections in person or on the phone.