0% Financing Can Cost You Money!

by Ken Frank
Finance Manager
We Drive

When vehicle sales drop, manufacturers increase their rebates and incentives.  Most of their advertising will showcase 0% financing.  Did you know that in many cases you’ll give up a large rebate or incentive to get 0% financing and the final cost of your vehicle will be more than if you finance with We Florida Financial?  I can write more about this, but I’m going to let the numbers do the talking!

0% Financing Can Cost You More Than Our Low Interest Loans!
Dealer 0% Loan WeFF 60 mo @ 2.99% WeFF 78 Mo @ 3.49%
MSRP $27,495.00 $27,495.00 $27,495.00
Dealer Gap $900.00 0 0
Dealer Fee $899.00 $899.00 $899.00
Sales Tax $1,757.64 $1,703.64 $1,703.64
Tag/Title $400.00 $400.00 $400.00
Amount to Finance $31,451.64 $30,497.64 $30,497.64
We Florida Financial GAP $0.00 $590.00 $590.00
Loan Total $31,451.64 $31,087.64 $31,087.64
Interest $0.00 $2,463.17 $3,756.76
Rebate $0.00 ($4,750.00) ($4,750.00)
Total Cost of Vehicle $31,451.64 $28,800.81 $30,094.40
Savings over 0% loan $2,650.83 $1,357.27

For this example I used a 2020 Chevrolet Equinox LS with the advertised rebate of $4,750. The Manufacturer’s Suggested Retail Price (MSRP) is as of April 2020.  If you use We Drive, you’ll get a better deal than this!  The financing is based on the new vehicle rate with a credit score of 730 or above obtained through We Florida Financial’s loan origination platform.

Car Buying, New Cars, Vehicle Financing
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