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?”

  1. There are a number of factors to consider:
  2. 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
  3. 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?
  4. 0% usually only applies to certain makes and models
  5. 0% offers are restricted to shorter terms thus raising the amount of your monthly payment
  6. If you do qualify double check to make sure that processing or other fees have not been added to your contract
  7. 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.

Pete Spalding

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