A question that a lot of members ask when shopping for a new vehicle is “Is it really better to accept the 0% offer on the interest rate?”
There are a number of factors to consider:
- About 10% of applicants will actually qualify for the 0%, so if you do not have a perfect credit score you possibly will not qualify
- You will generally have to choose between the 0% financing and any potential rebate
- This is an important consideration based upon how long you will keep the loan open. i.e.: Will you pay off the loan (or trade in the subject collateral) early or will you keep the loan to its maturity?
- 0% usually only applies to certain makes and models
- 0% offers are restricted to shorter terms thus raising the amount of your monthly payment
- If you do qualify double check to make sure that processing or other fees have not been added to your contract
- If you are ever late with a payment your 0% rate could jump considerably
If you are in the market for a car, remember that Verity Credit Union has very competitive rates and terms on auto loans.