Is 0% financing from the dealership always going to save you money? If you are prepared with alternative financing options before you walk through the showroom door, you're already ahead of the game.

Only a very small percentage of buyers will actually qualify for that terrific 0% rate, and often terms are for 36 months, which means higher monthly payments for you. So being ready with "plan B" or even "C", or "D" is a necessity. Do your homework before you step foot inside the dealership and find the very best options, in case the 0% is not all it's cracked up to be. Make sure you find out about any available rebates. Often, opting for a rebate and a low interest rate will cost you less than no rebate and 0% APR. You should also consider the total cost of the entire package, vehicle purchase price and financing. If you can save on the purchase price of your vehicle, going with low rate financing may be a better deal than taking the dealers 0% financing with a higher purchase price.

Last, but not least, don't think an auto loan is the only advantageous way to finance a vehicle. If you're a homeowner, you may want to consider financing your vehicle with a home equity loan. With a home equity loan, you can borrow up to 80% of the equity in your home for almost any purpose you'd like, including the purchase of a new vehicle. The interest rates on Home Equity Loans are typically as competitive as auto loan rates but, because a home equity loan is tied into your home, you might benefit from tax advantages that you will not find with an auto loan.

The bottom line is that before you sign on the dotted line, think about whether you are getting the best deal. If not, it could end up costing you lots of dollars and cents!
Take a look at a comparison of 0% financing with no rebate vs. taking a rebate with low rate financing