Many dealers are offering 0% APR financing and cash rebates to drive traffic into their dealerships. 0% APR sounds pretty good so why not take the dealer up on this offer, right? Not necessarily...
When the dealer offers a rebate as an alternative, you can often save more on your new car than if you chose 0% APR financing. Simply do the math to see your savings—when you apply the rebate as your down payment on the vehicle and include your low rate with Texans CU, you'll often come out ahead with this option. Consider an example:
|0% APR financing
with no rebate
|2.50% APR Texans rate with $2,500 rebate|
|Term||60 months||60 months|
|Total Paid for Car||$20,000||$18,635|
In this example, you're saving $1,365 over the life of the loan and saving $22.75 each month on your car payment—an annual savings of $273!
The next time you see 0% APR financing, be sure to read the fine print and do your homework to make sure you're getting the best deal. And be sure to get pre-approved with Texans CU to find out how much you could save if you take the rebate and finance with your credit union instead!
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