Rebate or Low Rate Financing ?

Auto Manufacturers and dealers are marketing vehicles by offering a rebate or exceptionally low financing.  The dilemma facing consumers is should they take the rebate or special financing??

For Example, you have decided to purchase a vehicle for $17,000.  The dealer is going to give you a rebate of $3,000 or a finance rate of 2.9 percent.  Most often, offers of special financing are for a limited term, generally up to 36 months.  This can make the payment considerably higher than most of us would like.  Because of the high cost of today's vehicles, most members take up to 60 months to repay their new vehicle loan, with a few electing financing for 48 months.

Here is a comparison of the loan payments with the dealer's reduced financing and the Credit Union's standard financing:

Dealer/Factory Reduced Financing

2.90% APR for 36 months on a $17,000 loan:

Monthly Payment = $493.63

Total of Payments = $17,770.74

OR

APS Federal Credit Union Financing* of a $14,000 Loan:

($17,000 minus the $3,000 factory/dealer rebate)

36 Months - 5.0%

48 Months - 5.0%

60 Months - 5.5%

Monthly Payment = $419.59

Monthly Payment = $322.41

 

Monthly Payment = $267.42

 

Total Payment = $15,105.33

Total Payment = $15,475.69

Total Payment = $16,044.98

Amount Saved, Term of Loan *

Amount Saved, Term of Loan *

Amount Saved, Term of Loan *

Monthly Payment Difference

Monthly Payment Difference

Monthly Payment Difference

$74.04 Less

$171.22 Less

$225.21 Less

If you take the rebate, and finance your new or used vehicle with an APS Federal Credit Union Auto Loan, you can save money compared to the Dealer/Factory Low Rate Financing.

  Both on Total Payment and Monthly Payments.  You decide how and what you want to save.  Lower Total Payment or by getting the car or truck you want at a lower monthly payment.

* The amount of savings for the Term of Loan can be greater when the monthly payment is made through direct deposit.  1/2% Savings on rate with Direct Deposit.

 Call the Credit Union Office for complete details.

Rates quoted here are for comparison purposes only.

Loan amounts do not include optional Life And Health Insurances.

Auto Loan Rates effective 1/10/07.  Rate can change at any time.

Call the Credit Union Office for the current rate.

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