The Dangers of 0% Financing

Often, car buyers opt for dealership financing over an easy online car loan because the dealer offers a 0% financing program. Read up on the facts about 0% financing to find out why you're not getting the good deal you think you are.

About 0% Financing

Dealers often lure customers away from third-party financing, like an easy online car loan, with promises of 0% financing. On the surface, this might seem like an attractive offer, but it is actually little more than a deceptive marketing ploy. Zero percent financing is often riddled with caveats and fine print that make it a more costly endeavor than it seems. Commonly, 0% financing is offered as an alternative to a cash rebate, which is almost always the better deal. If your dealership gives you the choice, opt for the cash rebate and go with an easy online car loan. Here are some reasons to avoid 0% financing:

• You limit your options. Zero percent financing offers usually severely restrict your car model options. You might find out that the zero percent offer only applies to two or three models, none of which you actually want. With an easy online car loan, you will get a competitively low APR and have the freedom to choose whatever car model you like.
• Abbreviated loan terms. Remember that dealerships have to make up the profit they lost on 0% financing somewhere. Usually, they do it by drastically truncating the terms of the loan, sometimes to as short as 36-48 months. With these abbreviated loan terms, your monthly payments will be sky-high. An easy online car loan lets you choose your loan terms, which gives you much more flexibility in payment options.
• Inflated, non-negotiable sticker price. Again, the dealership has to compensate for the profit they lose on 0% financing somewhere. Often, this involves charging you the full MSRP of the car and making the price non-negotiable. This basically means you lose whatever money you saved on financing by having to pay an inflated sticker price. Walking into a dealership with a pre-qualified easy online car loan will make you a more attractive buyer and actually help you in price negotiations. With an easy online car loan, the chances are much better that you will pay considerably below the MSRP. See our home page for more about us and our easy online car loans.