0% Car Dealer Loans, Too Good To Be True

0% Car dealer loans, too good to be true?

We have all seen them. Straight after our favorite football loses, again, an enticing car advert that invariably includes at least five gorgeous women which provide added incentive to the bombshell, “You can get a 0% car loan if you buy this amazing car model”. Shouldn’t you race to the nearest dealer and take advantage of this must not miss deal? Maybe you should. This article is not out to bad mouth these and similar adverts. It is out to give you a fighting chance to understand the real story behind these kinds of loans, ah, and also to channel as much web traffic to our sponsored websites

So what is the real story the real deal behind 0% car dealer loans? Well like all types of loans of advertising they are a marketing tool to attract business for car dealers! Wow! What a steal of a story! The good news is that these marketing “tricks” often bring good deals for consumers, so this might still be good news for you. 0% car loans provide an attractive loan for customers who buy new cars, which are rather pricey. The car dealers are hoping to increase sales by saving customers on a rather unpalatable side of car buying, interest. However, and here comes the catch, these 0% finance deals are often weighed down with fine print. This fine print “controls” the 0% deal with two main conditions:

1) Your credit rating must be pretty much spotless. If you have a mediocre credit rating you will probably not qualify for 0% and for you it will just be a marketing gimmick. However this is the case with most low APR loans. If you have medium to low credit rating you will pay high APR whether at the car dealer or with your local bank, you are just going to have to get over it.

2) You are will have forfeit other marketing gimmicks. Generally when you buy a car you get juicy discounts or rebates from the car dealer. It is generally the case that when you qualify for 0% finance you don’t get the rebate or discount most buyers enjoy. You can’t really blame the car dealer, he wants to increase his client base and sell more cars but he still needs to make a profit or he might as well join Peace Corps if he is going to be in it for charity.

So what is the verdict? Are 0% car dealer loans too good to be true? Well, no. If you have great credit rating and the car model you like qualifies you could get 0% (they generally pile on the discounts on the less popular models) then it might be a good deal for you. That is where you need to do your homework, because it only might be a good deal. You need to work out what the rebate or discount on the same model is and work it against the saving of having a 0% loan.