Car advertising shows that hot brand new car just begging you to buy it. The ad also says the dealer will give you 0% financing on it. Is that a good deal? Here is what you need to know about 0% financing on your auto loan.
Car dealers are out to make money – like any business. This means that they have to work to constantly get a new turnover of clients all the time. 0% financing is just one of many tools used to get the general attention of the public so that they will come and take a look. And if you are wondering – yes, there is a catch that may make their more regular offers a little more enticing – once you understand the actual offer.
Since everyone likes to think they can get something for nothing – it works to draw people to their car showroom floors. This ends up actually being an either/or situation.
0% financing allows you to make a quick discount on your car financing but only under certain conditions. For instance, in most cases it will require that you pay for the car in three years or less. This causes there to be a pretty hefty monthly payment – even without the interest. In fact, the payment on this kind of...
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