Consumer Reports Offers Tips, Warning on Zero Percent Auto Financ ing

FOR IMMEDIATE RELEASE

CONTACT:	Douglas Love
	Consumer Reports
	(914) 378-2437
	lovedo@consumer.org


CONSUMER REPORTS OFFERS TIPS, WARNING
ON ZERO PERCENT AUTO FINANCING

ConsumerReports.org Posts Free Interactive Calculator
To Help with Decision-Making Process

YONKERS, NY - Making a spontaneous decision to buy a vehicle because it
carries an enticing 0% financing offer or hefty cash rebate is just asking
for trouble, according to the auto experts at Consumer Reports®.

Consumer Reports' auto buying experts are urging consumers not to get caught
up in the latest round of car ads touting zero-percent deals-and wind up
with a vehicle that doesn't really suit their needs-or their wallets.

CR's experts pointed out that auto manufacturers often use aggressive sales
incentives, such as low-percent financing and rebates, to move slow-selling
models or others that they want to clear from their dealerships' lots. In
fact, virtually all of the vehicles that are currently available with 0%
financing are 2002 models that need to be sold in order to make room for
incoming 2003 models. Very few 2003s are carrying any type of
consumer-oriented sales incentive, CR found in its analysis of
manufacturers' offers.

"Don't get hung up on one car simply because it carries 0% financing,"
according to Robert Gentile, manager of Consumer Reports' New- and Used-Car
Price Services. "Any deal is only as good as the vehicle you are buying."

For most models that are carrying 0% financing, a cash rebate is also
available. This can be taken as a lump-sum payment, but it makes more
financial sense to use it as part of the down payment. To find out which
gives you the better deal, you need to crunch the numbers both ways. If you
use the rebate as a down payment, you reduce the amount of money you need to
borrow but you'll make payments at a higher rate.

Consumer Reports has posted a special free report on
www.ConsumerReports.org. that includes a new, interactive calculator online
to help consumers assess whether it makes more sense to take a zero percent
interest loan or opt for a rebate and low-rate auto loan from a credit union
or bank.

Consumer Reports recommends that car-buyers read reviews, check for the
features and safety equipment they want, look at crash-test results, and
take a thorough test drive-something many consumers fail to do. Saving a few
dollars in payments each month isn't worth it over the long run if you don't
like the vehicle's performance, comfort, or other factors.

A model's reliability is also an important consideration. It may make better
financial sense over the long term to buy a consistently reliable model at a
little higher interest rate than an unreliable one at 0%. Few consumers have
the money, time, or patience, to put up with a car that needs frequent
repairs.

Don't forget to compare the dealer's loan rates with what's available from
other sources. Check out web sites such as www.bankrate.com, www.eloan.com,
or www.lendingtree.com to learn what interest rates banks and other lending
institutions are offering.

Regardless of whether you choose a low interest rate or a cash rebate,
you'll still want to carefully negotiate a vehicle's price. There's no
reason why you shouldn't get the lowest price possible on a vehicle, plus
the incentive savings as well. When negotiating for any new vehicle, it's
better to start with what the dealer paid for the vehicle and bargain up,
rather than start with the sticker price and bargain down.

Gentile pointed out that there's a glut of late-model, low-mileage used
vehicles on the market, too-largely stemming from the first round of 0%
financing programs last fall and lease-returns. Consumers may want to
include both new and used vehicles in their search and pick the option that
best meets their needs.
Consumer Reports offers numerous products and services to help consumers
find reliable new vehicles at a good price. These include Consumer Reports
magazine; our Buying Guides for both new and used cars; the Consumer
Reports' New- and Used-Car Price Service; and www.ConsumerReports.org.

Consumer Reports' New- and Used-Car Price Service provides all the pricing
information and advice a consumer needs to get the best deal on virtually
any vehicle. Buyers simply call the service toll free at 1-800-395-4400 and
provide the year, make, model, and trim line of the vehicle they want to
buy. Or, they can order online. Complete pricing reports with detailed
reliability information and advice on negotiating the best deal are
available online, or by fax or mail. New-car reports cost just $12.

The Consumer Reports New Car Buying Guide 2002 costs $9.99 and is available
at major bookstores and online booksellers. It can also be purchased online
at www.ConsumerReports.org/newcars.

The newly-released Consumer Reports Used Car Buying Guide 2002 costs $5.95
and is available at newsstands, major bookstores, and online booksellers. It
can be purchased online at www.ConsumerReports.org/usedcars.

Car buyers can also visit www.ConsumerReports.org. The web site's free area
contains extensive information on buying a car, checking a used car, and
interactive tools to help you buy or sell a car. New for 2002 is an
interactive tour of an auto dealership that's designed to take some of the
anxiety out of the car-buying or car-leasing process. Site subscribers pay
just $3.95 per month or $24 per year ($19 for Consumer Reports subscribers)
to access additional features, including CR's Forums; unique reliability
histories for 1,300 used cars; and ratings, recommendations and advice on
hundreds of cars and trucks.

Consumer Reports is one of the most trusted sources for information and
advice on consumer products and services. Its editors have decades of
experience in driving, testing, and reporting on cars.
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