When 0% financing isn’t the cheapest option…

Did you know that it could be cheaper to get a low-cost auto loan from Arsenal with a rebate incentive from the auto manufacturer instead of choosing an interest-free loan from your dealer without a rebate? While some offers may include zero percent financing and a cash-back rebate, the rebate is typically even higher if you forgo the zero-percent rate. Here are some important facts to know before you sign for your next automobile:

  • No-interest loans tend to be available only withshorter-term loans, such as three years, which makes a car buyer’s monthly payment high and possibly unmanageable.
  • Zero-percent offers are usually available only onspecific models and apply to new vehicles rather than used.
  • Less than 10% of consumers even qualify for no-interest offers.
  • Opting for an Arsenal loan with a rebate reduces the purchase price of the vehicle, which meansless tax to pay.
Arsenal provides an online calculator that helps you crunch the numbers and find out which financing option is better. Follow our side-by-side comparison to prepare your calculations properly and to get an idea of how much you could save with our provided example.


Preapproval is your firepower. An auto expert with bankrate.com, Tara Baukus Mello, advises consumers via The New York Times to shop around for rates and to get preapproved for an auto loan by a financial institution before heading to the dealership. Having a loan commitment with a financial institution to compare alongside the dealer’s offers ensures that purchasing power remains on the buyer’s side. Furthermore, Baukus confesses to The New York Times, “I’m a big proponent of loans through credit unions,” and with superior rates, there aren’t many reasons to look elsewhere.

For the complete story regarding the caveats of 0% financing, click here. You can also learn more about purchasing a new automobile at Arsenal’s education hub.