Car purchase zero percent financing. Consumers often believe that they can buy cheap products without incurring additional costs through lending rates. For some traders, the “zero-percent financing” is possible only during the action times, for other sellers, it is permanently possible. Read robertdhogge.com for a critique
Here it is very important to pay close attention to how much money must ultimately be spent to pay the car in installments and not at once. Otherwise, financing can become a very expensive affair. That sounds so tempting – zero percent interest on the new car and the passbook remain untouched.
Buy a car: Zero percent financing only supposedly cheap
Numerous car dealers offer interest-free financing for new and used cars. Motorists can save up to 4,200 USD by taking out a loan from a house bank. “Zero percent financing is promoted by the producer or retailer to increase sales, and if a buyer gives up zero percent financing, they can negotiate an increased discount on the list price.
A loan of this size can be obtained from the cheapest credit institutions at an effective interest rate of 2.79 percent (4-year term). In the dealer-independent loan, customers in the automotive trade behave like barges. If they bargain for a discount of just 5.4 percent, their overall costs are exactly the same as for zero-percent financing without further discounts.
“Some banks grant loans to buy a car at a particularly favorable interest rate,” explains Oliver Mayer. In addition, the car buyer remains more flexible with a dealer-independent installment loan. “Many car loan institutions require the deposit of the vehicle registration,” says Oliver Mayer. For vehicle buyers, there is a high discount on the network for special new car agencies. According to the “Center Automotive Research” of the University of Duisburg-Essen, there is currently an average discount of 18.5 percent on the target price.
Car financing with an installment loan would, in this case, be 4,200 USD cheaper than zero-percent financing without any further deduction. To achieve this, the local car dealer – in addition to the zero-percent financing – must allow a discount of 13.8 percent on the base price. Two-thirds of all customers receive this or a cheaper interest from the house bank.
Zero percent financing – deposit surcharge!
Buy a new car, a computer, or the much-anticipated home-style kitchen today. The financing of the dream can easily be done with a zero interest rate. But only in rare cases do these offers fulfill what they say. But those who believe that meeting these requirements will immediately receive the desired funding will soon be disillusioned.
Unfortunately, the ad often does not adequately refer to this issue, so many dream experiences come to an abrupt end in this steep position. But if you have passed the credit check successfully and have received the desired loan, the next surprise is that the banks suddenly demand additional expenses from the borrower, such as settlement fees, account money or other.