0 finance on cars

The auto markets all over the world are in ferment. The United States is no better with recession all around. This recession has also affected the auto Industry. This recession has perforce put pressure on the car dealers to sell their cars. Thus for manufacturers to stay afloat in the present economic scenario, selling a car has assumed gigantic importance. Its a no holds barred game. With General Motors tanking and Toyota posting a first ever operative loss in its history, the scene is to say the least not healthy.


To counter the recession and market the car dealers and the allied car companies will like to sell as many cars as possible. The result is exciting car finances. One of these is the 0% interest option. It really means that you are allowed to take away a car from the show room and the APR will be 0%. Sounds exciting but you may feel its improbable. But its a fact the 0% finance option is very much a part of the schemes to sell cars to the public. Afterall the auto companies have to sell their product and cannot let their car inventories pile up. Such 0% APR offers are really tempting and customers are attracted to it and the cars sell. Its thus a win win situation both for the car company as well as the customer.


However there is always an obverse side to these offers and that is in the form of fraudulent offers which could be advertised. So be careful and study the offers in detail before accepting a 0% finance option. You may be making a deposit and that could very well go down the drain. So alertness and knowledge should be the watch word. Once you have decided to buy a new or second hand car you will have to visit the dealer of your choice who markets that particular model. At the showroom the sales team will apprise you of all options and also put forward the 0% financescheme. However the 0% financescheme is not something automatic and applicable to all and sundry buyers, but is specific and targeted for a certain class of people who satisfy certain conditions. This is natural as the car dealer is giving you a car and not charging any interest, so the dealer and financer have to be doubly sure that they are selling the car to the right person.


The first point the financer will want to check is your credit score. If you have a low credit score and bad credit then these offers are not for you. But in case your credit rating and score is good then you are eligible. A good credit score would be anything above 700. Finance companies will start from here and there can be no deviation on this.


The second point is the models on which these 0% options are available. You may find that generally car models that are hot and much in demand are not being offered on the 0% financeschemes. The prerogative of giving 0% finance and on which models rests with the dealer and one really cant have any say in the matter. Generally 0% APR offers are only on certain selected models and you will have to choose from among them. Sometimes the 0% finance charge for cars may be on a good model, but the requisite color and other accessories like mag wheels may not be included. You may have to pay extra for them.


Again finance options for cars exist up to 84 months. But the 0% options are in most cases restricted to short terms only and car dealers may not go beyond the period of 36 months. This in real terms means that though you have 0% APR on the car loan, yet your monthly out goings will be higher. You will have to cater for this. We now come to the last condition for the 0% car loan. This concerns your deposit to the dealer. As a rule deposits for a 0% option are always much higher. You will have to budget for it. Typically the deposit could be as high as 30% of the car value or loan given. Hence it is important that you examine all offers with a magnifying glass and then make your choice. Next to buying a home, buying a car is something very important, hence a judicious selection of the car and the various options need to be evaluated in detail.


Keep another option handy and that is the online 0% offers. Online financers of cars generally give a quote in quick time, but for this to be effective you will have to answer all questions on the net accurately and honestly. This is important for the financer to form an opinion and give a relevant quote


Bear in mind that 0% Apr offers will have some file charges and you will have to pay them. In addition you must also remember that the car will be mortgaged to the financer, who has given you the loan. In case you default then the financer has lien on your car. The car is secured against the loan given.


However once the dust settles down, you will see that buying a car at 0% interest is a good option. Do avail it if you satisfy the conditions that go with this type of loan


Other Articles

  • Models of cars that you are...
  • Professionals attached with...
  • Get the exact same teaching...