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Myths of 0% Financing from Dealers

When you’re buying a new or preowned car, you have two choices regarding payment – financing options through your dealership, or one of Kaiperm’s low-interest auto loans. You may be familiar with the concept of 0% financing if you choose to finance with your dealership, and many car buyers select that option. However, there are a number of myths regarding 0% financing, and our CEO Karen Introcaso has debunked those myths for our members.

Let’s say you choose to buy a car for $44,000 and you finance it at 0% against that price for 60 months – your monthly payment will be roughly $733. However, if you choose to take the dealer’s rebate instead of 0% financing ($4,000), you can finance your new car with an auto loan through Kaiperm. While you will pay a low interest rate, your monthly payment will be roughly $722 – you save money with our loans.

While you will be paying interest with one of our auto loans, that interest will be lower than the rebate, and your payments will be lower – giving you the opportunity to pay down your financing in a shorter time frame. If you choose 0% financing instead of taking the rebate, you’ll actually owe more money in the end, and you risk the value of your car depreciating if you trade it in. You’ll also save hundreds of dollars if you choose GAP protection and extended warranties through Kaiperm.

We encourage you to reach out to us if you’re interested in financing a new or preowned car. Visit our website at www.kaiperm.org/auto to apply for one of our auto loans.

Karen Introcaso, CEO of Kaiperm Credit Union, explains the myths of 0% Financing and why you are better off with a loan from your local Credit Union!

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