Zero Percent Interest Finance Cars

        Recently, something you'll often see while browsing the news are the advertisements selling cars with a dubiously attractive text - "0% auto financing%. It almost seems like magic, how do they profit from this? Of course, many would be apprehensive about this and do a bit of calculation themselves, but even with that, it can seem like there's no caveat. But there must be a catch, so what is it?

Thing is, it can often cost more to finance a car through the seemingly enticing 0% financing deals. To truly understand, you'll have to grasp new car buying incentives well. Right now, there are two major kinds of incentives that are popular, 0% auto financing and a cash rebate. However, particularly the case for more expensive cars, zero percent financing certainly sounds like a more tempting prospect.

Zero percent financing is really simple to comprehend, it's a car loan that comes with 0% interest. A good example right now would be an American truck manufacturer offering more than $11,000 cash incentives on selected models! If you finance this vehicle you won't get those "incentives" so no, there is no such a thing as free money, sorry.

We ask Garsty what he thinks of 0% auto financing, here is his answer:

        If you apply for a similar loan from one of our reputable car loans lender partners for a low interest rate with no down payment, you'll be paying an affordable monthly and no down payment.

But the crucial thing applying for the low interest loan is the fact that you don't actually need to boast a stellar credit score to qualify for one. One big problem with the dealer-specific 0% financing is the fact that it's very difficult to actually be eligible for one. And it's entirely possible that you can actually save more money per month with a more generous manufacturer cash rebate and better interest rate.

And that is just on the surface. That's the part where astute planning and diligent research alone can reveal. The thing is with dealer 0% car financing, it's also likely that you'll have less wiggle room for pricing and extras. And should you end up missing a month's payment, it's entirely possible that your sweet 0% deal can be cancelled. Undoubtedly, 0% financing is less flexible, as it tends to be limited to short-term loans, usually around 36 months or 48 months. This translates to hefty monthly payments.

If you truly scrutinize though, even when you qualify for the zero percent financing car deals, it can be quite misleading at times, even downright duplicitous should you end up glancing over the contract briefly. You may end up needing to fork over a lump sum at the end of a low or no interest term to fulfill the contract. It can be a worthwhile deal if you're capable of paying the sum. Otherwise, you may have to apply for yet another loan or worse, end up getting your vehicle repossessed.

Purchasing a car is doubtlessly a massive financial dedication and quite an ordeal for most, especially the inexperienced. However, with prudent planning, it can be possible to end up with a great deal even for used cars. If it's your first time applying for a loan, or buying a car, don't hesitate to contact us, as we do have in-house auto finance experts that can advise you and sort you out with an appropriate car that fits your needs. In fact, if you're really interested, you can always pay a visit to our used car dealership in Cambridge, as we're always keen to provide our customers with the best experience possible and make sure they actually end up with a car that they can be happy with.
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