0% Financing On A Car 3 Tips

By Marie-Claire Smith

These days, TV commercials enticing you to buy a new car are as common as ever. But in a world of digital video recorders (DVRs) that allow viewers to pre-record shows and then skip past the commercials, car advertisers now have to work twice as hard to get you to pay attention to them. That is why the advertisers sometimes flash “0% Financing on a New Car” across your screen: they know you have a better chance of pressing “play” and watching the commercial rather than fast-forwarding past it!

Admittedly, 0% financing is a pretty attractive-sounding offer. After all, what it means is that the car dealer is willing to give you free money. That is, they are offering to lend you money at zero interest so that you can buy a new automobile from them.

Of course, as with anything that sounds too good to be true, you need to keep your eyes open when approaching an auto dealer about a 0% financing on a car deal.

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Here are 3 tips to keep in mind as you respond to these zero percent financing offers:

1. Pay attention to which models the offer applies to: In their never-ending quest to turn a profit, auto dealers usually resort to advertising the most attractive offer they have available, as long as it is real. That said, dealers can sometimes be a bit misleading on purpose. For example, a dealership that sells a certain make of car might tell you that they are currently offering zero percent financing on “certain models: see dealer for details.” This almost certainly is an indication that the selection of applicable models is probably pretty slim. Still, it could be worth checking out, since it is such a great deal.

2. Make sure that your great deal on financing does not get factored into the car price: If you walk onto a dealership lot and tell them right off the bat that you are interested in their 0% financing deal, they will immediately put you into a special category. That is, saying this will signal to the salesperson that they need to try to get you to buy the car you want at a higher price in order to make up for the 0% interest deal. That way, they can offer you this great auto financing deal but still make money.

3. Check your credit score – you may or may not qualify: Another common restriction for these 0% financing deals is that they require you have an excellent credit score – maybe 750 or above in some cases. Since such a stellar credit score only applies to a small percentage of the population, not everybody will be eligible for this type of deal. If your score is poor (or even good) but not excellent, you will likely not able to get such a good deal. In that case, you should ask what the dealer’s best offer for someone with your credit score would look like.

Remember that – just like everybody else – auto dealers are in business to make money. You can rest assured that if they are offering such a great deal on car financing, they are trying to make their money off of you in some other way. There is no crime in this, of course, but just make sure that when you drive off of the dealership lot you are made fully aware of all aspects of the deal you have agreed to.

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