Are 0% Car Finance Deals the Best Deal?What you don't know about 0% Finance

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Are 0% Car Finance Deals the Best Deal?

You have heard of many Companies and Dealers offering the magic “0% finance deal for a new car”.

Is this a dream or just too good to be true? Well there is a big catch when it comes to 0% finance.  We tell you why……

Are 0% Car Finance Loans Worth It? | Stay at Home Mum

The truth is that the actual car manufacturers promote these deals to entice the customers in to buy – and they do. The thing is, Interest-free doesn’t mean ‘fee free’.  It also means the money made by the finance companies are coming in from other areas. In other words, sellers will be ‘jacking up the prices’ to cover the costs of additional fees and charges.

In most cases when purchasing a vehicle on zero interest, you will be paying the full recommended retail price of the car and this can mean huge bonuses offered back to the dealership from the manufacturer, and you spending thousands more than you need to.

And if you are trading in a vehicle to buy a new car, they will also offer you a low trade-ins for your car (as they want to onsell at a bigger profit).

The News Gets Worse….

Another area you are getting stung as a consumer is the flexibility of your zero interest car loan.  These loans are usually set to favour the dealer and manufacturer. Hidden fees lay within the package, which often does not fall under the best “explanation factor” from the finance person from the dealership.

Our Advice?

Nothing in this life is for free, especially when it comes to buying a vehicle.  Do your homework when it comes to any loan.  Most of the time if you get a great interest rate on a car loan, you will actually end up paying less in the long term. Look at the total amount of repayments over the length of your loan to see how much you really will be paying!

zero interest car loans | Stay at Home Mum

How to Get the Best Car Loans

Don’t just take the car dealership deal when it comes to car loans.  You can get better quality loans either through your bank or through a broker who can work out the best payment options and make sure you negotiate the price of the car for a better deal.

We’re not saying you absolutely shouldn’t consider a 0% finance deal, we just like you, we want you to go in with your eyes open and read all that fine print on your loan documents.

zero interest car loan | Stay at Home Mum

How to Get the Best Deal Without Getting Stiffed….

Here are our tips for getting the best deal possible:

  • Don’t ever take the first deal offered to you.
  • Shop elsewhere for the loan.
  • Spend the time talking to an expert on all your finance options.
  • Do your research, shop the car for the best price and if you are not comfortable ask for an expert to
    assist here as well.
  • If you are trading a car, make sure you do not accept the first offer on your trade as well… the dealer will sell these off to other yards or even keep your trade-in to add at times $3000-$5000 on the
    value.

zero interest car loan | Stay at Home Mum

Stay at Home Mum Recommended Finance Broker:

Future Funding can assist with the best payment structure for your loan, and suitable loan package, saving you money and assisting with your own savings plan or finance options.

Are 0% Car Finance Loans Worth It? | Stay at Home Mum

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