Zero-Percent Auto Loans: The Facts

Zero-percent loans have become a very common promotion among auto dealerships to entice customers to purchase vehicles. After reading this article, however, I found, that in fact only approximately 33% of car buyers qualify and of those who do, only 10% actually receive the promotion.

Buying a new or used car is a relatively big purchase. You must do your research, not only about the car you want, but you should research the promotions offered to you by any dealership. You should also constantly compare rates, overall price, and if an option, compare lease and loan payments. By researching dealership offers, I learned more about zero-percent auto loans.

The truth is when you get a zero-percent loan, you tend to overpay for your car. This is because you believe you are getting a better deal, and fail to adequately negotiate a better deal, with the dealership. Typically the offer is limited to select models and years, limiting your choice, and if you already have a car in mind, limiting your chance of applying for the offer. In addition to this, you are typically paying a higher interest rate on your loan, meaning a higher price for your car. Doesn’t look like such a great deal after all.

For more information about zero-percent loans, this article was very informative The Truth About Zero-Percent Loans.