- Competitive low rate auto loans
- Fast, easy approvals
- Local decisions; no runarounds
- New and used vehicles
- Up to 110% financing on new vehicles
- Help in finding the right car at the right price through Autoland
- Loans for cars, trucks, motorcycles, boats, RVs
Receive a .25% rate reduction when you setup automatic payment from a SCCCU account.
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0% Financing: Look Before You Leap
Whenever 0% financing makes a come back as it has in the past year, many people consider purchasing a car because the financing sounds so attractive. While some people may benefit from provocative advertising, others cannot. It's essential to understand all your financing options and to know what you're buying before purchasing a new or used car.
Know What You Want
Making a spontaneous decision about purchasing a car usually invites trouble. Before you buy a car, take the time to thoroughly research the model you're interested in by reading reviews, checking features and safety requirements you want, looking at crash results, and taking a test drive.
0% Versus Cash Rebate
For most models that carry 0% financing, a cash rebate is also available. A rebate can be taken as a lump sum payment but according to Consumer Reports, it is often better financially to use it as a down payment. If you use the rebate as a down payment, the amount of money you have to borrow is lower but you'll have a higher interest rate. To determine which option is a better deal for you means that you will have to crunch the numbers both ways.
Keep in mind that 0% financing is almost always only available for slower-selling models or to make room for the next year's model. Also, remember that 0% offers are usually restricted to short-term loans of 12 to 36 months. This can make your monthly payments quite high.
Finally, always pay close attention to the fine print.
Qualifying for 0% Financing
According to Consumer Reports, only about one-third of those who apply for 0% financing actually qualify. Qualification is up to the auto manufacturer, who relies on your credit rating. If you don't qualify, you may be offered a higher rate of financing through the dealership. Before you sign on the dotted line, take the time to compare rates by calling the SCCCU loan department. In many cases, we can offer you a better option than the dealership. We're here to help you decide which rate will serve you best.
If you've financed a car in the past year or two, it's worth taking a look at refinancing. Even by pushing the interest rate on your auto loan down a percentage point or two, the money you save by refinancing adds up.
Call us, we're here to help
We encourage you to call our loan department no matter what your situation is. We are happy to answer any questions you have about vehicle financing and to help you crunch numbers to determine which is your best financing option. If you have any questions please contact us at (831) 425-7708.