0% APR financing may not always be the best deal.
Here's why.
If you're in the market for a new car, you're probably thinking about the money you can save by taking the 0% APR financing that many dealers are offering. Before you sign on the dotted line though, you should be aware of the drawbacks and fine print details associated with your 0% APR financing deal that could end up costing you money.
Not all models may qualify for 0% APR, so you could be forced to select from cars that the dealer has in stock, sacrificing the color, options, or special features you want. In addition, 0% APR is usually reserved for consumers with excellent credit––if you don't qualify, you could be bumped up to a much higher rate. And, since these offers are commonly restricted to short-term loans such as 12 or 36 months, your monthly payment may end up being more than you can handle.
The bottom line is that 0% APR financing may not work for everyone, so be sure to read the fine print and ask questions if you're considering one of these offers. You should also check with Northwest Federal, because an auto loan from us may save you even more than 0% APR financing can. You'll forego the 0% APR, but you'll get a $1,600 or $2,500 cash rebate from the dealer. Add the rebate to your downpayment and/or trade in, and you'll reduce the amount you need to finance, ultimately saving you interest and lowering your monthly payments. Plus, you'll have the piece of mind that comes when you do business with a trusted financial partner, and get the added convenience of having your loan payments directly deducted from the NWFCU account of your choice.
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