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Finding the vehicle you've always dreamed of is usually the easy part. The real challenge is how to get a good deal on it. A lot of factors go into this, but there is one thing that may catch your interest at some auto dealers - 0% financing. Is it really the dream come true that it seems to be?

Will it mean paying more for the vehicle?
Since the dealer earns no profit from 0% financing, you could end up covering the loss for the dealer somewhere else. For instance, you may have to pay full sticker price in order to qualify. Paying more for the vehicle may offset paying less for financing.

Will it cause your monthly payment to be too high?
Most 0% loans are for very short time periods. As a result, your monthly payment could be higher than your budget allows. For many, it is easier to pay smaller amounts over a longer time frame, even if the interest rate is slightly higher.

Are you eligible?
Dealers often restrict 0% financing to those buyers with spotless credit or may also require a large down payment.

Will you end up owning more than the market value of your vehicle?
You might if you've paid full sticker price because you've opted for zero percent financing. Here is why. Suppose you buy a vehicle at the end of the year when the new year's vehicles are coming in. The market value of your vehicle has started to fall, and will fall even further once you drive it off the lot. Because you have paid full sticker price, there can be a substantial gap between what you owe and the market value of your vehicle (in other words, you owe more on your vehicle then you could sell or trade it in for). This gap could affect you financially if you later trade it in or become involved in an accident.

Questions? We've got answers!
Drop by or call us today for a friendly, no-obligation meeting with one of our Personal Lending Specialists to review your specific personal, financial, and borrowing needs. We'll work with you offering the best possible car loan program - placing you in the driver's seat quickly and easily.