So I won't purchase a Rabbit unless they offer 0% financing on it. I want an 08 4-door with a 60 month loan. A dealer around here (Dick Hannah VW) said that I could buy down the APR from the normal rate (around 6%) to 0% for up to 84 months. I have searched for this but have not found anything, and the person over the phone wanted me to come in and then she would explain it. How does a buydown work?

And yes, I know that the 2007s have 0% APR, but I want an 08.

Thanks in advance.

I would suspect it is some fancy accounting trickery whereby you are just prepaying the interest up front. BEWARE!!!!! Get them to write out all the numbers for you on this deal and on a regular finance deal through VW credit and compare them closely. this is what I did and learned a lot. On deal I was offered by one slimy dealer would have ended up costing me 50% of the value of the car in interest. Needless to say i did not take that offer.

This doesn't sound kosher - VW won't offer 0% on the '08's until next season
So either you find the lowest interest rate you can (excellent credit should score you 1.9% at least)

Or tell the dealer to redo that sale. Sounds like the dealer wants you to pay the interest up front like some one posted

when you buy a house you buy the down the interest rate by paying points. i didn't know that was possible with an auto loan or even make sense. paying one point is equal to one percent of the loan.

if you have good credit to get 0% on a 07 then paying 4.9 or 5.9 would only a difference of $5-$15 depending how much you finance.

Who cares if VW offers 0% right now...if YOUR credit is good enough to get 0% through a VW financing entity you should be able to get the same through a bank or credit union.

If it's not, then why does it matter?

If it is, good on ya.