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Zero Percent Auto Loans Financing Offers

Zero Percent Financing Auto Loans:

Zero percent financing on auto loans sounds perfect doesn’t it? Not all zero percent financing loans are perfect and there are things you need to look out for. Most zero percent promotional loans require nearly perfect credit. If you do not have excellent credit you may get up to the point where you are signing the papers and find out that you are not eligible for the 0% rate and find yourself being offered a higher interest rate. The credit required for a zero percent financing loan varies from one automaker to another since they all use different financing companies.

Another drawback of zero percent financing is that it is usually only available for a short term, such as three years. Instead of being able to pay off the vehicle over a longer period you will have to make larger monthly payments for the shorter term that comes with the zero percent financing offers.

Just because you are getting a low or zero percent loan does not mean that the car you are purchasing is a good deal. You need to calculate how much that loan will save you over the current going rate for a new car loan. Other auto makers may offer a rebate or special discount that will make their car a better deal. You also need to make sure you can still negotiate a good price on the vehicle you want. Paying full MSRP for a new car and getting a zero percent loan is usually not a great deal. The bottom line is not to get caught up in marketing hype of zero percent car loans and make sure you are getting the right car for you at the right price.

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