The truth about 0% financing

Beware of drawbacks like these:

  • Credit score.  Only about 5% of all consumers qualify for zero percent financing.  You must have an excellant credit rating and a certain amount of income to qualify.
     
  • Shorter loan terms.  Some dealers offer 60 month terms, but 36 months is more typical, which means higher monthly payments.
     
  • Fewer models to choose from.  The customer may be limited to what is in stock, and therefore, not able to buy the vehicle they truly want.
     
  • No rebate.  The customer may be asked to choose either zero-percent financing or a cash rebate.
     
  • No grace period.  If you purchase on a zero percent interest rate program and fail to make a monthly payment, the terms of the contract change, and the deal is off.  You are now charged a very high rate of interest that began accumulating the day of your purchase and perhaps all kinds of penalty fees will be tacked on as well.
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Equal Housing LenderNational Credit Union Administration
NCUA - Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government agency. Equal Housing Lender - We do business in accordance with the Fair Housing Law and Equal Opportunity Credit Act
2410 Gaynor Ave. NW • Grand Rapids • MI
Phone (616) 784-4822
Phone (800) 962-6378
Routing 272480872

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