Rebate vs. 0% Financing - Which is Right For You?
Before jumping at either choice, you need to ask yourself how long you intend to keep your vehicle. SCCU's low member rates, combined with the rebate may be the best choice.
If you're like most people, you trade in your vehicle before the term of the loan is up. A rebate of up to $3,000 is all up front and you receive the full savings benefit immediately. With the 0% financing, it takes years before you realize the full savings. The following example is based on trading your vehicle in after 3 years:
|Dealer Financing||SCCU Loan|
|Loan Rate||0% APR||5.99%* APR|
|Term of Loan||48 mos.||48 mos.|
|Vehicle Price||$ 23,000||$23,000|
|Down Payment/Trade In||$ 2,500||$ 2,500|
|Negotiated Discount/Rebate||------||$ 3,000|
|Amount of Loan||$20,500||$ 17,500|
|Monthly Payment||$ 427||$ 411|
|Total Amount Paid at 36 mos.||$ 15,372||$ 14,796|
|Remaining on Loan Balance||$ 5,128||$ 4,932|
At 36 months, the SCCU loan will have saved you $576 and the remaining loan balance on the SCCU loan is $196 less than the dealer's 0% APR loan.
Another benefit of taking the rebate is the immediate effect of creating a stronger equity position in the vehicle. This gives you more flexibility when trading early because you will owe significantly less on your current loan.
When offered a 0% APR, always do the comparison.
Rebate + SCCU's Low Rate = One Smart Deal
Take the Rebate and Finance Through SCCU! For help in evaluating your financing options, call Express Sales at (321) 752-2222 or (800) 447-7228.
* Rate as of July 1, 2008. All rates, terms and conditions are subject to change. APR = Annual Percentage Rate and is based on your credit quality, term and Member Rewards level. For any loan NOT ON TRANSFER from an existing SCCU account OR DIRECT PAYROLL DEPOSIT, one quarter of one percent (.25%), will be added to the approval rate. For example, the above quoted APR is based on Platinum Member Rewards level, 48 monthly payments of $411, with $17,500 borrowed. Your rate may be different. Our usual credit criteria apply. Qualified borrowers only. Savings shown is for a new vehicle loan with a term of 48 months.
The information on this page is for educational purposes only. SCCU is not engaged in providing estate planning or other advice. Please consult with a competent estate planning professional regarding any specific estate planning questions.