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Is 0% Financing Too Good To Be True?

Buyer Beware

If you are in the market for a new car or truck, you’ve probably seen or heard commercials advertising 0% APR financing from dealers or manufacturers. What a great deal! Well, maybe not.

When you take a close look, a loan with a 0% APR is exactly as it appears: You purchase the car at the agreed-on price and make monthly payments on the principal of the car with no interest, but here is what you need to take into consideration:

  • 0% APR is likely only for buyers with excellent credit scores and high incomes.
  • The interest may only be offered for part of the loan term.
  • If you miss a payment, the interest rate may skyrocket and be retroactive.
  • Negotiating the car price will be difficult.
  • 0% APR is typically for new, in-stock models with premium trims
  • You may not get as much money for your trade-in vehicle.
  • You may not get any other manufacturer rebates or incentives.

While it may be worth it to see if you qualify for a 0% APR loan, it is also a good idea to get pre-approved for a loan through Carpenters Credit Union before you head to the dealership. Having as many options as possible is an important financial strategy.

Applying for a loan is easy! Visit our easy to use online loan application here. All the messy paperwork is left behind. Just fill out your information and submit. A loan officer will review your information and contact you as soon as possible!

Of course, we’re also happy to assist you by phone at 1-888-815-8827. An easy, hassle-free loan process – It’s our commitment to you!