Many factors determine whether a special offer provides genuine savings. The interest rate, for example, is only part of the car dealer s financing package. Terms like the size of the down payment also affect the total financing cost. A call or visit to a dealer should help clarify details about low interest loans. Some merchants limit special deals to a few days or require that you take delivery by a certain date.
Some dealers promise to sell the car for a stated amount over the dealer s invoice.
You might be giving back the big trade-in allowance by paying more for the new car. You can consult consumer or automotive publications for information about what the dealer pays. You are not limited to the financing options offered by a particular dealer. Before you commit to a deal, check to see what type of loan you can arrange with your bank or credit union. Once you decide which dealer offers the car and financing you want, read the invoice and the installment contract carefully.