Home > Auto Loans Articles
"Zero Percent" Car Loans - Why They May Not Be Your Best Option
Car dealers spend millions of dollars each year advertising "zero percent" sales. With the recent struggles the top auto manufacturers are going through you will definitely see more. But be careful!
When you consider how expensive new cars are today zero interest car loans can be enticing because of all the money you think you will save. The truth is that zero percent financing may not be the best option for you.
First, pay close attention to the length of the loan being offered. Zero percent may seem like a good deal, but sometimes dealers only offer zero percent for loans that are 24 or 36 months long. This means that you will be left with extremely high car payments.
Second, when dealers offer zero percent loans, they often do not give you any rebates in addition to the financing deal. In this case, getting a few rebates may in fact equal to more money than you would save in interest on the loan. So when comparing the deals, make sure you work with the dealer on both angles.
Finally, zero percent loans are often only offered to those with great credit scores.
Make sure the dealer or financial institution approves you for the loan before driving off the lot with your new vehicle. Dealers sometimes scam consumers by letting them drive off the lot with their new car, only to call them in a few weeks informing them that they were denied zero percent financing, giving them a high interest rate loan instead.
 More Auto Loans:
Most Popular Related Articles:
|
Bad Credit Auto Loans