If you qualify, dealer special rates as low as 0.0% APR will save you money. However, most programs have many restrictions that limit your choices. Know how dealer financing works before you buy. Read these helpful hints to find out if dealer financing is right for you.

If you qualify, dealer special rates as low as 0.0% APR will save you money. However, most programs have many restrictions that limit your choices (see below).

In most cases, you can lower your monthly payment by bypassing the dealer special rate. Instead, take the cash rebate and add it to your down payment. You will enjoy a lower monthly payment and save more money over the life of the loan.

Some of the most common restrictions on dealer special rates are:
Your credit affects the rate. APR’s vary depending on the buyers’ creditworthiness as determined by the dealer. The lowest rates are reserved only for those with the best credit.

Many models are excluded. Generally the most popular, high demand vehicles and new models are not included. Vehicles must be taken from dealer stock, limiting your choice of vehicle options.

The length of loan term affects the rate offered. The very best rates are for the shortest time periods and will result in higher monthly payments. Calculate your monthly payment now.

You lose the cash rebate if you take the special financing, which can amount to thousands of dollars.

Dealer participation may affect savings. Dealers who offer these special rates may be less willing to negotiate on the price of the vehicle. Residency restrictions may apply as well.