Many car dealers offer you the choice of 0% financing or a cash rebate. But how will your save the most? Take the rebate, apply it to vehicle’s purchase price, and finance the balance with Southwest FCU – even when the dealer’s advertised rate is lower than ours. For example, if you’ve chosen a $20,000 vehicle, you may have the option of financing it through the dealer with 0% interest or taking a $3,000 rebate. If you take the 0% interest and finance the full $20,000 for 48 months with the dealer, your payment will be $416.67. If you take the rebate instead and finance $17,000 with Southwest for 1.99% APR, your payment will be $368.76. Over the four years of your loan, you’ll save $2,301.12. Keep in mind that Southwest members with two or more depository accounts are eligible for another .25% off our low loan rates.
Be on guard for:
0% offers that are only for 24 or 36 months. You may want a longer loan term.
A higher vehicle price. Dealers will be less willing to negotiate if you won’t be paying interest to their finance company.
The dealer’s “informing” you about Southwest rates. A member of our volunteer Board of Directors was preapproved recently for a vehicle loan and went shopping for a car. When it came time to sign the papers, she told the dealer she would be financing through Southwest. He presented her with rates he claimed were Southwest’s and tried to redirect her auto loan to a financial institution from which he would receive an incentive (Southwest does not engage in that practice). The rates were inaccurate and much higher than our vehicle loan rates. Fortunately our member knew that or she would have had a much higher payment.
Remember:
Our rates are as low as 1.74% APR. This is a regular, not promotional rate, and will not be adjusted up after part of your loan term has passed.
No payments for 90 days
Flexible terms