All you always want to know about buying car on finance. No mater if you need car finance with bad credit or looking for guaranteed car finance. We're her to help you choose wisely.
0 car finance, sounds tempting, doesn’t it? It is also called discount finance but it is just a tactic used by dealers to attract more customers. In 0 car finance, the bank lends you the money and you repay it back over a longer time period, like in any other case. But the difference here is that you pay back as much as you borrowed, without any interest at all.
However, the zero percent loans are not offered to everyone. They are usually only given to customers with a very high credit score and good loan history. The way the dealers and bank do not go into a loss with such deals is pretty simple. The bank is actually just giving you the money of the automaker. The automaker earns in such a way that they still get as much money as the car’s value and as much they would charge while selling to anyone. They just get this money over longer time period instead of getting it instantly after the deal is finalized.
Some dealers use it as a scam to attract customers. They offer zero interest for the first few months but then, there are certain terms and conditions under which you have to pay some extra money. However, make sure you check the car thoroughly before deciding on getting the car just because it is offered to you with zero percent finance.
0 car finance is a very good way to attract customers. However, there are only a few who actually qualify to get the deal. Sometimes, the vehicle being offered would be zero finance but not a good deal in other aspects. All these must be taken care of before you get trapped. After all, it does sound too good to be true for some reason.
Read more about 0% car finance.