Zero Percent (0%) Financing is Not a Deal


0% financing– here’s an interesting
subject! But nothing is free. At the end of the day, the 0% is costing you. A
common offer is 0% financing or $2,500 cash back. I’d rather take the $2,500,
because it’s going to lower the price of the car. Let’s do the numbers on this.
If you pick out a $20,000 car and you take 0% for five years, your monthly payment
will be roughly $333 dollars. If you instead took the $2500 cash
back and finaced at 3.99% for five years, your monthly
payment would be roughly $322 a month. That lower monthly payment adds up to a savings of a total of six hundred and fifty dollars compared to a 0%
offer. For this type of offer, I encourage people to take the dealer financing
for the first 10 days get the $2,500 cash back and then refinance at a lower
rate with the credit union. You can maximize every savings offer available
without losing anything. What I’m here to do is prevent the stress and games of
dealerships. With the Merrimack Valley Auto Advisor program we want to help you
feel comfortable going to a dealership and also educate you in the car buying
experience.

Paul Whisler

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