When you are getting a new – or gently used – vehicle, sometimes excitement takes over and a fast-talking salesperson can pressure you into making a not-so-great decision. The way they talk, it may seem like dealer financing is your best option, but it’s not always as affordable as they make it seem. The promises made by dealers generally fall under the “Too Good To Be True” category. Often you find out that lesson when it’s too late.

First off, less than 10% of applicants actually qualify for the 0% financing dealers advertise. They certainly don’t tell you that! Those slick salespeople earn their reputation. In most cases, the rate you qualify for will be much higher. Once the financing process is started, many people just go with what the dealer has to offer.

More shockingly, however, is even if you did qualify for the 0% financing, it’s probably not the best deal. How’s that possible? How can you beat 0%? Easy. When a vehicle is sold, it often comes with a rebate. If you take the rebate, you are financing the vehicle at a lower purchase price. Check with your credit union, and get pre-approved. Chances are a rebate and a rate from your credit union will result in lower payments each month. With the extra cash in your wallet each month, you’ll have enough to gas up your new ride!