0% Car Finance from the Dealership...amazing deal right?

May 04, 2017
Samantha Korzeniewski

It sounds fantastic, IF that is exactly what you are getting.

Before you sign on that dotted line, or get stuck with the salesman, look into it closely. Sometimes the finance deals may be what is called a ‘subvention agreement’ – meaning, the purchase price of the car is already loaded up with the finance costs (interest & fees etc). Either way the dealership is not missing out. Or, you may find somewhere deep in the fine print, that you will pay a healthy interest rate after the initial 12 months of the contract. This allows the dealership to make up for the lost interest in the first year, and advertise the finance as “0% Interest”.

When the car yards are offering these great sounding deals, it quite often makes the cars sale price non-negotiable.

Surely this isn’t the case 100% of the time, it would be lovely to think that some of them are a “real deal”. However, educating ourselves in what’s actually going on with the finance might be best before test driving that shiny new car.

You can also get a very transparent quote on lender finance to take to the dealership which will give you a great bargaining tool, and keep them honest.


Chat to Deslie about what is truly on offer on Car Loans.

0418 715 286 | deslie.taylor@mortgagechoice.com.au | 07 5549 0800

Posted in: Car loans & leasing

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