Beware zero percent financing!
Zero percent financing sounds like an amazing bargain–after all, how can you beat a no interest loan? Often, you can. Such “deals” frequently come with inflated prices for extended warranties and loan insurance, high application fees, and pre-payment penalties. And because you forfeit the rebate option, you end up paying a higher price for the car. You may also be required to repay the car in three years or fewer–resulting in a very high monthly payment.
Zero percent financing can be elusive. It is only offered to those with very good credit, as determined by the lender. And it is often not available for the most popular cars and trucks. When you’re in the market for your next vehicle, let us help. Though we cannot offer 0% interest loans, taking advantage of a loan from Upward Credit Union with a competitive interest rate will most likely result in a better deal!
Dealer and Finance Company Loans
At an auto dealership, you will most likely be encouraged to use the dealers financing. While not all dealer loans are bad, in most cases a loan from Upward Credit Union will be a better deal.
Here are some tips to help you get the BEST deal on your next vehicle:
- STOP BY CAR LOTS WHEN THEY ARE CLOSED AND LOOK AT THE VEHICLES.
This gives you the opportunity to kick some tires when there’s no high pressure sales person to hassle you while you look.
- DRIVE THE CAR IN THE DAYLIGHT.
If it is the one you are buying, you will want to make sure there are no dings or marks to be discovered later.
- GO LATER IN THE DAY.
The sales people will often be less likely to try and spend an excessive amount of time with one customer.
- ALWAYS PUT LIMITS ON YOUR BUDGET BEFORE GOING TO THE DEALERSHIP.
Never walk into the dealership unprepared. Know what model you’re looking for, the options you want, and how much you can spend. Do not get “talked into” going past your pre-set limits. You set that limit for a reason. Think about it away from the dealership. If the dealership is afraid to let you go, or makes it uncomfortable for you to do so, this is more of a reason to get away and think.
- MOST IMPORTANTLY!
Get pre-approved for your auto loan before you go to the dealership. Apply online 24/7 at www.upwardcu.org. Walking into the dealership with a pre-approval shows that you’re serious about making a purchase and gives you the upper-hand in negotiating the best price for your next vehicle.
Car buying tips courtesy of IFMAAutonetwork.comopens in a new window.