0% Interest Auto Loans - Can a Zero Interest Rate Be Possible?
Zero percent interest auto loans are often being advertised in television commercials. It sounds almost too good to be true to hear that you can take out a loan on a car and pay it back over time without having to pay any interest on the loan. Are these no interest auto loans for real, or are they a scam? The answer is somewhat nuanced. The fact of the matter is that these loans are in fact offered at no interest, but there are some things to consider before deciding to take these kinds of offers.
The first thing to keep in mind is that a zero percent interest auto loan will typically only be offered on a limited number of vehicles. If the vehicle that you are looking for is being offered with zero percent financing, than it is certainly worth considering. If, on the other hand, you are only considering the vehicle because of the fact that it is being offered at no interest, it is probably a good idea to pass. You may want to consider a car that is less expensive, or one that is better suited to your needs because of family size, gas mileage, and other concerns.
The next thing to think about is that dealerships will usually make you spend more on the price of the car if it is being offered without interest. They may sell the car at sticker price only, without giving you the option to haggle. In some cases you may find that this is still worth it, but it might not always be the case. Before you make any decisions, you should look at how much you will be spending versus other options. You may find that you will actually end up spending less if you buy a different car and pay the interest on the loan.
Another thing to consider is the fact that the monthly payments may be too high for you to afford them. Zero interest financing almost always requires the loan to be paid back within a very short period of time. This means that while you are not paying any interest on the loan, you are still paying very large payments each month. You might spend less overall, but if you can't afford these monthly payments it is not worth taking the offer.
Who are zero interest auto loans intended for? They are best suited for people who have almost enough money to buy the car up front, but would feel more secure if they paid over time instead.
Note: Generally, direct auto loan lenders offer the lowest auto loan rates. They are the way to go to save money in your next car loan application.
Hector Milla runs the Direct Auto Loan Lenders website, where you can get an instant approval auto loan regardless of your credit.
0 comments:
Post a Comment