With today’s auto loans, zero-percent financing can cost more than you think. Before you seal the deal on your next auto loan, you should know a few things about this special financing arrangement.

Zero Percent May Offer Fewer Choices
Usually, only certain models or brands qualify for special financing. Your choice may also be limited to the dealer’s stock on hand, which means you might not get the color, style, or options you want. Unwanted options can drive the sticker price up 25% or more, lessening your ability to negotiate a better price on the new vehicle or for your trade-in.

Nothing’s for Nothing
According to a Consumer Task Force for Automotive Issues survey, fewer than 10% of all applicants meet the strict credit criteria needed to qualify for the zero-percent rate. Those with less-than-perfect credit get bumped up to a higher-rate loan. Also, many loans require a shorter payback term, making your monthly payments less manageable. You may even have to make a larger down payment and be subject to bigger prepayment penalties.

Make a Real Deal
Want to make the best deal? Take rebates instead of special financing, negotiate a good price, then come to your credit union for financing. We offer competitive rates on new and used auto loans, and you can get pre-approved in minutes. This chart illustrates your potential savings:

New Auto Financing: Car costs $20,000
Loan Terms	36 Months		60 Months
Rates	0% APR	SchoolsFirst FCU 4.0% APR*	2.9% APR	SchoolsFirst FCU 4.3% APR*
Cost of new car	$20,000	$20,000	$20,000	$20,000
Less dealer rebate	$0	$2,000	$0	$2,000
Amount to finance	$20,000	$18,000	$20,000	$18,000
Monthly payment	$555.56	$531.35	$358.49	$333.53
Total financing cost	$20,000.00	$19,128.60	$21,509.40	$20,011.80
SchoolsFirst FCU Savings		$871.56		$1,497.60

You can use our online financial calculators to determine your monthly payments. We encourage you to compare payment plans to ensure you're getting the best deal.