Buying a Vehicle

0% Financing vs. Low Rate Financing Plus a Rebate: Which is Better?

Car dealers often try to attract buyers by offering a choice of a cash rebate OR 0% financing with no rebate. Which is usually the better deal? You might be surprised to learn that the combination of the rebate and low-rate financing is often a better deal than 0% dealer financing.

Case in point: Suppose you’re planning to buy a $15,000 car with the choice of a $2,000 rebate or 0% dealer financing. Consider your potential savings if you choose the $2,000 rebate and finance the remaining $13,000 with a low-rate auto loan from TruGrocer FCU. With a 3.45%* two-year loan, your monthly payments may be as low as $561 per month, totaling $13,464 – a savings of $1,536. What’s more, your monthly payments would be lower since they’d be approximately $625 per month with the 0%, two-year financing option.**

In some situations, 0% financing may come out ahead. But keep in mind that fewer than one out of 10 people who want 0% financing get it, according to the Credit Union National Association. Many factors influence the outcome, including the vehicle price, the rebate amount, and the rate and term of the loan. It is wise to run the numbers in each case to determine the best option for you.

TruGrocer FCU offers favorable rates and terms on auto loans, and you generally may finance up to the full purchase price. Contact any TruGrocer branch for information or go to www.trugrocer.com for convenient calculators to estimate the cost of financing your car purchase. For the greatest savings, apply for financing online to receive our maximum discount for usage of credit union services.

*On approved credit. Your individual rate may vary based upon credit quality, usage of credit union services, term selected and, if applicable, age of vehicle.

**Example is hypothetical and does not include taxes, delivery, registration, title and license fees, or trade-in vehicle discount.


Start your shopping at TruGrocer Federal Credit Union. When you're ready to start looking for a new car, remember your Credit Union is the place to start your shopping. If you've had a loan with us before, we may only need to ask a few questions prior to making another loan advance. Visit or call to learn more about being pre-approved for your low-interest auto loan. Once you've been approved for a TruGrocer auto loan, start car shopping online and check out the following Web sites to find the information and resources, including the difference between invoice and MSRP of your preferred models: The web site links below are external Internet addresses and are not operated by TruGrocer Federal Credit Union. The Credit Union does not endorse, approve, certify, or control these external Internet addresses and does not guarantee the accuracy, completeness, efficacy, timeliness or correct sequencing of information located at such addresses. The privacy and security policies of these external Internet addresses may differ from those practiced by TruGrocer Federal Credit Union. Edmund's Automobile Buyers Guide: Used car prices back to 1990; safety information; and ratings on new vehicles. Kelley Blue Book: Kelley Blue Book gives you up to date and accurate prices on new and used vehicles. Nada: National Automobile Dealers Association web site guides you to new car and truck sites on the web. Car & Driver: Buyers Guide covers automobiles manufactured in the last two years and can be searched by manufacturer, vehicle type, price range, and more. Insurance News Network: Crash test result, auto thefts by model, automobile insurance advice and facts. Highway Loss Data Institute: Accident facts for cars, drivers, and pedestrians.