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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, let's say a dealership has a 2021 Dodge Ram 1500 - Limited Crew Cab 4x2 with $9,473 in incentives or 0.00% financing up to 72 months. The MSRP on the RAM is $56,250. If we do a little math, we can compare the final costs from the dealership to the total cost if you were to finance though Synergy FCU.

If you were to finance through the dealership
(MSRP) $56,250 at 0.00% for 72 months = $781.25 per month
The total paid life of the loan is $56,250

If you were to finance through Synergy FCU
(MSRP) $56,250 - (total cash incentives) $9,473 = $46,777 (financed amount)
$46,777 at 2.49% (our 72 month best rate when applying online) = $700.08 per month
The total paid, including interest ($3,628.48) = $50,405.48

By taking the dealership rebates/incentives and using Synergy FCU for your auto loan, you actually end up saving $5,844.52 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.