The truth about 0% car finance

Offers of zero per cent interest on car finance may sound tempting, but it pays to understand the fine print, because deals that sound too good to be true, often are.

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. This means that negotiating a better price with the dealer may be out the question.

Additionally, these offers usually apply only to certain models in a range. So if you have your heart set on a certain model, you may have to compromise to take up the 0% p.a. offer.

It’s important to look out for additional clauses in the sale contract, like servicing the car regularly at the dealership to maintain the warranty. These service costs may be higher than you’d pay at an independent mechanic.

You should also check any warranty and insurances you are being offered, to make sure you are paying only for what you need.

The key to getting a good deal on your next car is homework. Make sure you read the fine print and shop around for a deal that’s right for you.

Your local Mortgage Choice broker has 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.

So why not contact your local Mortgage Choice broker today, to get expert advice on buying your next car.

Posted in: Car loans & leasing

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