Myths About Car Financing and Shopping

With loan rates on auto loans at UCCU as low as 3.99% for 60 months right now we thought it was a good time to repost some information about common car shopping myths. Whether you are getting a new car or want to refinance an auto loan to lower payments and interest, right now is a prime opportunity to do so.

Avoid being fooled by these common car shopping myths:

  • MYTH: Factory Invoice is how much the vehicle costs the dealer.
  • Not true. Dealers often receive manufacturer incentives and holdbacks, which lower the dealer’s costs.

  • MYTH: 0% financing is a great deal.
  • Not necessarily! You need nearly perfect credit to qualify for these offers and may be required to give up a potential manufacturer’s rebate – often thousands of dollars. You may end up saving more money by taking the rebates and getting a loan at a low interest rate through UCCU. In addition, 0% financing typically comes with a short loan-term making monthly payments high. Additionally, 0% financing is usually only offered on slow-selling models (like big SUV’s that get poor gas mileage).

  • MYTH: If I want to drive home in my new car, I must finance at the dealership.
  • Not true. You typically have anywhere from 5 to 10 days to present the dealer with payment for your purchase. You can purchase a vehicle over the weekend and finance with UCCU on Monday! Also, for your convenience, we have partnered with many local dealerships to offer UCCU financing so make sure and ask them if they can finance it through UCCU for you on-the-spot.

3.99% is an extremely low rate. Give us a call and see if we can beat the rates you are currently paying. We can even help evaluate the rates you are paying on your mortgage, home equity and credit card loans to make sure you are getting the best deal. Representatives are available business days from 9:00 am to 5:30 pm at (801) 223-8188 or toll free at (800) 452-8188. You can also apply online at

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