Many car dealerships offer 0% p.a. interest car finance, which may sound like a great deal – but before signing up to any loan there are a few things you should look out for.
Although the loan is being advertised with a 0% p.a. interest rate, the purchase price of the car may have been raised to compensate.
Also these offers may apply only to certain models within the range. So you may have to compromise if you have your heart set on a certain model, to take up the 0% p.a. offer.
It’s important to look out for further clauses in the sale contract, like servicing the car regularly at the dealership to maintain the warranty. These hidden service costs may be higher than you’d pay at your local mechanic.
You should also check any insurances and warranties you are being offered, just to make sure you are only paying for what you need.
Make sure you read the fine print and shop around for a deal that’s right for you. The key to getting a good deal on your next car is homework.
If you need help buying your next car, we have access to a range of vehicle finance providers and car buying services and will help you compare all your options. We’ll even help you secure loan pre-approval, meaning you can focus on finding a car knowing how much you can afford to spend.