<prompt> Human: I understand how car dealerships can offer 0 financing because they recoup the difference by either selling you extra features or by increasing the price tag of the car itself. But how can my credit union give me a 18k, 3 year car loan at 0? Why would they do that? I have pretty good credit and make a decent salary, but it doesnt seem like they stand to gain anything from this deal.  <response>: Credit unions are not-for-profit institutions, and exist only to serve their members by providing banking services, including loans. Of course, they do need to earn income to pay expenses, so a 0 loan is subsidized by other services and revenue sources. Interest costs right now are very low, so its not costing them much to offer 0 loans as long as payments are made on time. And if they are not, interest and penalties are due. Total interest at 3 would be about 700. 