The Partnership Federal Credit Union

Consumer NEWS You Can Use

The Partnership FCU Products & Services Offerings - Click here for complete details!

Untitled Document


The Holes in 0% Financing

Are You Confused by All of the Auto Offers out there? You’re Not Alone.

Deciding between a low-rate 0% APR DEALER LOAN or a DEALER REBATE can be difficult. Here are the FACTS:

0% APR Dealer Loan Offer:

Dealer loan rates of 0% sounds attractive, but beware of hidden costs! Most of these loans require a larger down payments and offer shorter terms such as 36 months. These loans may also require high credit scores or may only be valid on in-stock vehicles and slow-selling models.

0% Dealer Loan Payment:
$694.44 Monthly

Loan payment example based on a $25,000 vehicle loan at the dealer 0% APR for a 36 month term. If the monthly payment is too high for you, the dealer may try to talk you into a higher rate with longer terms.

Dealer Rebate / Cash Back Offer:

Say the dealership will give you $2,500 cash back –this will reduce your loan amount from $25,000 to $22,500. Then your new vehicle can be financed with the credit union.

$2,500 Dealer Rebate and Credit Union Loan
Payment: $408.81 Monthly
(SAVE $285.63)

Loan payment example based on a $22,500 vehicle loan, after dealer rebate, at the credit union 3.45% APR* (check our CURRENT RATES) for a 60 month term. You save $285.63 monthly! Think of all the things you could do with the extra money!

Are you missing out on money savings?

Even if you can afford the high monthly payment of 0% APR dealer financing, it still may not be your best option. Take a look at this example:

*Auto loan rates as low as 3.45% APR (check our CURRENT RATES). APR=Annual Percentage Rate. Your actual rate may vary. APR on all loans will be based on applicant’s past and present credit performance.
** Total cost estimate based on bi-weekly payments of $188.87 for 60 months.