Zero Percent Interest Car Loan
Here is what the zero percent interest car loan scam is and
how you can avoid it.
Car dealers spend millions of dollars each year advertising Zero Down, Zero Percent Financing and No Payments
For Six Months on new car purchases.
When you consider how expensive new cars are today then zero interest car loans can be enticing because of all
the money you think you will save.
But lets look a little closer because there are a few pitfalls involved with zero percent interest car loans,
and they are:
- Studies have shown that fewer than 10% of those that apply for zero percent interest car loans actually get
approved. The reason is that their credit score isn't high enough.
- Studies have also shown that the small percentage of new car buyers that do get approved for zero percent
interest car loans DON'T bother to negotiate a lower price on the car. Why? I have no idea but I'm thinking
that the psychology is that they feel that they are getting something for nothing so they don't want to come
off as being greedy. What?!
- If you do get approved for a zero interest auto loanthen you will usually find them to be short term for
maybe 24 to 36 months. Of course your payments will be really high with a short term car loan.
- Dealer rebates aren't offered with zero percent interest car loans.
- Dealers may limit zero percent interest auto loans for select models only.
If you're like most of us and you don't have an extremely high credit score and/or you can not afford the short
term car loan with high monthly payments and/or the dealer isn't offering this loan with the type of car you want,
then here is the solution...
- Always negotiate a lower price!
- Go for the rebate which can often be several thousand dollars.
- Apply for a good credit or even a bad credit new car loan online. If you do
that now then you will know in advance exactly how much car you can really afford and even be able to go to the
dealer with a blank check.
Getting approved for a low interest car loan in advance will also save you tons of grief because you won't have
to deal with the high pressure salesperson in the car dealers finance department.
Okay, so there is a simple, easy and painless way for you to avoid the zero percent interest car loan scam.