LOW INTEREST LOANS AND OTHER OFFERS
Some new car dealers may advertise unusually low interest rates and other special promotions such as high
trade-in allowances and free or low-cost options. While these advertisements may help you shop, finding
the best deal requires careful comparison.
There are many factors that determine whether a special offer provides genuine savings. The interest rate,
for example, is only part of the car dealer's financing package. Other terms, such as the size of the down
payment, also affect the total financing cost. Be sure to consider all aspects of a financing plan before you
sign a contract.
When considering an advertised special, read or listen to the ad carefully and call or visit the dealer to find
out about all the terms and conditions of the offer. Then compare the specials advertised by other dealers.
Listed below are some financing questions you should consider when talking to dealers:
• Will you be charged a higher price for the car to qualify for the low-rate financing? Would the
price be lower if you paid cash or supplied your own financing from your bank or credit union?
• Does the financing require a larger-than-usual down payment, for example, 25 or 30 percent?
• Are there limits on the length of the loan? In other words, are you required to repay the loan in a
shorter period of time, such as 24 or 36 months?
• Do you have to buy special or extra merchandise or services, such as rustproofing, an extended
warranty, or a service contract to qualify for a low interest loan?
Is the financing available for a limited time only? Some merchants limit special deals to a few
days or require that you take delivery by a specified date.
• Does the low rate apply to all cars in stock or only to certain models?
• Are you required to give the dealer the manufacturer's rebate (if one is offered) to qualify for
Other special promotions include high trade-in allowances and free or low-cost options. Some dealers also
promise to sell you a car for a stated amount over