car parked in front of lake at sunset

Is 0% Auto Financing The Best Deal?

If you're getting ready to buy a new vehicle, you’ve undoubtedly seen dealerships advertise 0% financing. But before you jump at what seems like such a great deal, take the time to learn your options. In some instances, a low-rate auto loan combined with the manufacturer’s rebate is a better deal than 0% financing. But this isn't the case for everyone. Here some facts to think about before making the deal:

  • Generally, buyers must forfeit the manufacturer’s rebate if they choose the 0% financing offer.

  • Buyers typically need to have a credit score above 700 to qualify for 0% financing offers.
     
  • 0% financing is usually reserved for select vehicle models. 
     
  • 0% financing means you're essentially only paying for the car but a processing fee may be applied to recover the loss of interest.
     
  • Many 0% financing offers are restricted to shorter terms. This can cause your monthly payments to be much higher.

  • 0% financing offers are only available for new vehicle purchases.

If you choose to finance through a credit union, like Orange County’s Credit Union, there are loan options for a wide range of credit history, terms up to 84 months, and your financing would be good for both new and used vehicles. Plus, you might be eligible for a dealer rebate. Use this calculator to help determine which is the best option for you.