Polk County Schools Employees Credit Union

Polk County Schools Employees Credit Union

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How to beat 0% interest on a car loan

Here is an example of why we say you should check with us before committing to new car financing with the dealer even if the rate looks a lot lower. If the price is $18,000 or lower and the rebate is $2000, or if the price is higher and the rebate is higher, you are better off to finance your purchase at the credit union.

CASE: New car purchase of $15,000 with an option of either 0% APR dealer financing or a $2,000 rebate.

OPTION 1: You select the 0% APR for 60 months. The monthly payment is $250.00.

OPTION 2: You select the $2000 rebate and finance with the credi/t union at our current new car rate of 4.49% APR. A loan of $13,000 for 60 months has a monthly payment of $243.00.

SAVINGS: Theirs of $250.00 minus ours of $243.00 equals a monthly savings of $7.00 times 60 months equals $420.00. PLUS, you save another $100 on Iowa Sales Tax!

With savings like this, you should be laughing all the way to your credit union!