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Take the Rebate and Run!

 

It doesn’t get any better than 0% vehicle financing … right?  Wrong!!

If you believe that, you could be making a very expensive mistake.

 

Here’s why.  To qualify for 0% financing you usually must agree to bypass manufacturer rebates. The real cost of 0% financing is not in what you pay (the interest rate) but in the rebates you give up.

 

Here is a real life example.

You’ve found your car and negotiated your best deal.  You now have two financing choices:

(1) a $25,000 purchase price, no rebate and 0% dealer financing… total financed is $25,000.

(2) a $25,000 purchase price, $2,500 rebate and 2.99% APR from Freedom… total financed is $22,500.

Check out the chart below for a side by side comparison.  Freedom’s 2.99% financing, combined with the manufacturer rebate, beats 0% financing hands down.  Not only is Freedom’s monthly payment lower but the total you pay over the loan term is also less! 

0% financing loses.

 

 

      0% Dealer     

60-months

2.99% Freedom 

60-months

2.99% Freedom 

72-months

Purchase Price

$25,000

$25,000

$25,000

Rebate Accepted

$0

$2,500

$2,500

Amount Financed

$25,000

$22,500

$22,500

Loan Term (mos.)

60

60

72

Monthly Payment

$417

$404

$342

Total Paid

$25,000

$24,240

$24,624

Freedom Savings 

 

$760

$376

 

What if you trade your vehicle before your loan is paid off?

Freedom offers vehicle loan terms of up to 72 months, but statistics show that the average loan is paid off in only 30 months.  Many members trade vehicles every 2 to 3 years.  Freedom financing is an even better deal for you if you expect to pay off your loan early.

 

Why? Consider this.  When you accept 0% financing for 60 months, you get a benefit spread over a 60-month term.  If you pay off (or trade in) early, you give up part of your benefit.  On the other hand, when you accept an up-front rebate, you receive your entire benefit immediately.  If you pay off early, you keep your benefit … you got it all up-front!

 

So … be careful.  Don’t assume that 0% or other low-rate financing offers are your best deal.  Always review the numbers.  Check with Freedom for an objective comparison.  Better yet, get pre-approved with our AutoEdge program.  If we can’t beat your best offer, we’ll tell you.  Chances are, however, that Freedom financing will be the wise choice.  We have been since 1952.

NCUA