Really? I thought dealer financing was always a bad deal.
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Really? I thought dealer financing was always a bad deal. |
It certainly can be. The best method is to shop around. If the dealer offers a 0.0 or 0.9 percent rate, it is probably based on a lower rebate to you. This means that if you paid cash or obtained outside financing for your new vehicle the price might be $25,000.00 including rebates. But if you take the 0.9 interest rate, you forego some of the rebate and you finance maybe $28,000.00.
So, go to your handy-dandy credit union and see if financing $25,000 at 4.9 % is a better deal over 60 or 72 months than financing $28,000 at 0.9%.
Do the math. Usually - but not always - you do better with factory financing.