Generally there are usually no hidden dealer tricks to these super-low financing rates. They truly are great deals offered by the manufacturers to help the dealers move out certain models which may be lagging in sales. There are, however, some things you should be aware of:
- You need to have good credit score (usually 680 or higher) to actually qualify for these special loans. Only about 20% of car buyers do qualify.
- The dealership makes more profit on regular financing rather than on these special financing deals. That’s why the Business Manager of the dealership may try to convince you that you don’t qualify for the low rate. This simply a scam and you shouldn’t fall for it if you know that your credit score is good.
- Car buyers usually have a choice between the low financing rate and a rebate. For buyers who need the cash for their down payment, the rebate may be a better way to go.
- Remember, that these special low-financing rates are often applicable to short-term auto loans (2-3 years) and do not apply to the typical five-year loans that most buyers prefer.
