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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