Is Zero-Percent Financing Really A Good Deal?

Some dealers offer a choice between discounted (or zero-percent) financing or a rebate - but not both. Consumers may erroneously assume that the zero-percent loan will deliver the most savings.

Sometimes it's better to take the cash rebate and use your own pre-approved car loan. Zero-percent financing is typically only offered to those with the best credit, on limited vehicles, for very short terms. Sometimes the price for the vehicle gets inflated to account for the loss of interest.

Do your homework. Discounted financing may not be the best option.