0% MAY ACTUALLY COST YOU MORE

Zero may sound like the best deal you can get, but when it comes to financing your car - zero may not necessarily be better.  If you have to give up a rebate to get 0% financing at the dealership, you may be giving up a LOT of money. 

In this episode of Money Minute learn how much trading a rebate for 0% financing can actually cost you.  Look at the numbers for yourself BEFORE you sign on the dotted line.

	0% Dealer financing	Credit Union financing
Price of car	$20,000	$20,000
Trade-in	$1,000	$1,000
Down Payment	$500	$500
Manufacturer rebate	$0	$2,500
Amount financed	$18,500	$16,000
Number of months in loan	36	36
Loan interest rate	0%	3.00%
Monthly Payment	$514	$465
Total cost	$18,500	$16,751
Total interest paid	$0	$751
SAVINGS	$0	$1,749

Here are a few additional DOs before you go to the dealership:

DO your research before heading to the dealer - know the true cost of the car with all the options before you start negotiating. Also make sure to do the research on the car your trading in. Check out Kelley Blue Book beforehand so you have an idea what you should be getting for your trade.  Remember not to mention the trade to the car salesman until after you've settled on the price of the new car.

DO get preapproved before going into the dealership. You can do that through Tropical Financial Credit Union at www.Tropicalfcu.com. This will give you a leg up when entering the F&I office (Finance and Insurance) as well as easily allow you to avoid being talked into any extras the dealer may want to add on.

DO talk to your insurance agent beforehand. Know what it will cost you to insure the new ride and make sure your budget can handle that expense.

Buying a car is a very exciting time, but if you're unprepared it can cost you more than it should. Remember the more you know, the more you save!

^Amy