Although the 0% financing option may sound attractive at first, looking deeper may reveal a different story. Ask yourself the following questions:
Is the dealer charging you a higher price for the vehicle for the option of 0% interest?
What is your credit rating?
Is the 0% offer limited to certain models or dealer stock?
Is the 0% offer restricted only to short-term loans?
Is the dealer charging you a higher price for the vehicle for the option of 0% interest?
Car dealers also have to raise the price of a vehicle before offering 0% interest financing to the buyers. Often, the buyer has the choice between a low interest rate or a large discount. By financing your new purchase with an HFCU automobile loan, you may be able to receive the dealer's discount incentives without paying their high interest rates.
What is your credit rating?
There are usually strict stipulations in qualifying for the 0% deals.
Is the 0% offer limited to certain models or dealer stock?
That means you may have to sacrifice color, style, and/or options you want. Unwanted options can add to the sticker price of your car.
Is the 0% offer restricted only to short-term loans?
If so, the monthly payment could be so high that it's difficult to afford.
Remember, the dealership is in the business of making money. Do your homework first - you'll probably be better off taking the rebate, negotiating a better price, and financing with Houston Federal Credit Union.
If you have any questions please feel free to call HFCU at 1-866-OUR-HFCU (1-866-687-4328) or (281) 243-0500. You can also request information online or stop by and visit with one of our friendly service representatives.
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