When it comes to zero-percent financing, is zero really your hero? While you may be eager to accept this popular offer from dealers, there are many factors to consider before driving off with a zero-percent auto loan.
What is zero-percent financing?
The financer is lending money to the buyer without charging any interest over the life of the loan. It’s common for dealerships to offer incentives like zero-percent financing or a rebate, especially for slower-selling models or to make room for newer models.
Which offer should I choose: zero percent or a rebate?
Combining a shorter term, like 36 months, a low interest rate, and a rebate can potentially fuel your savings more than a zero-percent offer.
|New Auto Loan: $30,000|
|Net Price of Car||$27,500||$30,000|
|Loan Amount + Interest Repaid||$28,400||$30,000|
*FAIRWINDS rate and savings shown is for illustrative purposes. Your actual savings will vary.
Before you head over to your nearest car dealership or check out their online inventory, get a precise picture of which option could save you the most money with our free Rate vs. Rebate calculator. Another recommendation? Make sure you’ve determined how much you want to contribute for a down payment and start building a rock-solid savings plan to decrease the amount you finance.