Beware of Those Teaser Rates

Teaser rates have always been offered to drive more business to the dealerships, but often times these offers are not beneficial to the buyer. Knowing what to look for, and what questions to ask the dealer, will help you decide if zero percent is the best deal for you. Here are a few of the facts and restrictions that may apply:

• Almost perfect credit may be needed to qualify for these offers
• You may be required to give up a manufacturer’s rebate
• It could mean shorter terms and larger monthly payments
• It is usually offered on a limited number of models
• You may be limited to dealer stock and not be able to choose the exact vehicle you want

Do the Math

With a JHFCU’s low-rate auto loan, you are qualified to use any rebates offered by the manufacturers—and that combination could be your best deal! A rebate will reduce your loan amount. Paired with a low-rate JHFCU loan, your long-term costs are often lower than if you opted for special factory financing without a rebate.