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0% Financing Pitfalls

0.00% financing seems like the best option for your auto loan, right? This won't always be the case. Before you head out to the dealership, be open to other financing options that may be better for you in the long run. 

For example, lets say a dealership has a 2019 Ram 1500 with $6,750 in cash incentives or 0.00% financing up to 72 months. The MSRP of the Ram is $44,085. If we do a little math, we can compare the final costs from the dealership to the total cost if you were to finance through Synergy FCU.

If you were to finance through the dealership
(MSPR) $44,085 at 0.00% for 72 months = $612.30 per month
The total paid life of the loan is $44,085

If you were to finance through Synergy FCU
(MSRP) $44,085 - (total cash incentives) $6,750 = $37,335 (financed amount)
$37,335 at 2.65% (our 72 months rate when applying online) = $561.49 per month
The total paid, including interest ($3,091.86) = $40,426.86

By taking the dealership rebates/incentives and using Synergy FCU for your auto loan, you actually end up paying $3,658.14 less over the life of the loan versus the 0.00% dealership financing. Compare different payments with our Auto Loan Calculator and then get preapproved for you loan before heading to the dealership.