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You've done the shopping, test drove the car, and picked
the interior colors. Now you're presented with the financing
terms.
Often, car dealers will offer a choice of a rebate on the
price of a new car, or a below-market finance rate such
as 1.9% or 2.9% APR*. In most cases, you're better off taking
the cash rebate.
HERE'S WHY:
The lower interest rate is often offered with VERY strict
terms, not usually evident in those flashy, and fast, TV
ads. For example, you might get 1.9% for 24 months, but
9% for the remainder of the loan. They may also offer zero
percent for the term, but demand $5000 down on the purchase.
Or, the dealer may give you a really low rate, but only
for 24 months which could translate into a huge monthly
payment for you.
Even with the same loan term of 48 months, taking the
cash rebate will still lower your monthly payment.
TAKE A LOOK:
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Credit
Union Financed |
$15,000 purchase price
-$2000 dealer rebate
$13,000 financed
4.24% APR**
48 months
$299.67 monthly payment
$14,384
Total Cost |
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Dealer
Financed |
$15,000 purchase price/financed
1.9% APR*
48 months
$324.79 monthly payment
$15,590
Total Cost |
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And, with an APGFCU auto loan, you know you'll always
get the convenience, service, and trust of your
credit union behind you.
You can also get APGFCU auto financing at over
70 area car dealers right in the showroom through
our Dealer
Direct program.
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