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What is your car worth?
What is that vehicle you have your eye
on worth?
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Edmonds Car Book
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Forgoing Rebate Offers
With many of today's dealer offers, buyers have a choice: Accept zero-percent financing, or a cash-back rebate that can outweigh the benefits of interest-free financing. Let's say, for example, you're looking to put down $2,000 on a $33,315 loaded 2008 Chrysler 300 Limited. You could go with Chrysler's offer of zero-percent financing over 36 months and pay $33,315 by the time you're done paying for the car.
Or you could accept Chrysler's $5,000 cash back offer instead, then apply that money toward a $7,000 down payment on the car, financed at a 6.9 percent rate (that national average for car loans last year) for the same 36 months through a bank or credit union outside the dealership. You'd pay a total of $2,716 in interest on the car over the life of that loan -- and minus the dealer's $5,000, you'd have parted with $31,031 of your own money over three years -- $2,284 less than with the zero-percent deal.
We have some of the best rates around on Auto Loans and very flexible terms. Apply on-line or come in and see us to get preapproved for your next car or truck purchase. Let us put you behind the wheel of the vehicle you really want!
NEW AUTO LOANS:
Check out our "Great Loan Rates" . . Same great rates for new and used autos. Then click on the car keys to start your application today!
0% vs. Cash Rebate
0% sounds pretty good, however, fewer than 10 out of 100 people actually receive the 0% APR due to the narrow qualifications set up by the auto manufacturers. And, when you don't qualify for the 0%, the finance managers will move you to a higher rate that is usually higher than the rate you can get at the credit union.
So, if the dealership is offering a rebate, it can sometimes be a better deal to take the credit union financing and the rebate. The dealership will only let you choose 0% or the rebate - they will not let you have both. If a person chooses 0% APR financing over the cash rebate, the value of the rebate is typically added back to the cost of the car. This ultimately makes the car more expensive, as the loss of the rebate constitutes a hidden finance charge. Many times, dealerships will not come down off the sticker price of the car if they are offering 0% financing.
With Appalachian Community Federal Credit Union, you can have both a cash rebate and low interest financing. Get pre-approved for your next vehicle and use the rebate as the downpayment.
USED AUTO LOANS:
You can receive the new car rate on vehicles up to 10 years old and having less than 25,000 miles.
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