The Truth about 0% Car Finance.

When it comes to purchasing your dream car, we sometimes look for any opportunity to drive it off the show room floor. Many car dealerships offer 0% car finance, as a way to attract sales. Sure, low repayments sound like the ultimate solution, especially for first time buyers, but like all things that seem too good to be true, there is always a hidden truth that most people don’t recognise. Mortgage Choice Northern Rivers is here to expose the truth about 0% finance deals, so you can better understand your agreement terms, as well as provide you will alternative solutions to the finance of your dream car!

Here are some reasons why you should never trust 0% finance:

- 0% interest finance is considered a subversion agreement. What does this mean? The cost of finance is already loaded onto the cars sales price, meaning your low 0% interest rates are compensated for in the sale price of your car.

- By choosing 0% car finance, you are unable to negotiate on price. Meaning you may be paying too much for your vehicle when you don’t need to.

- Once your agreement has finished, you are usually left with a large sum balloon payment. Due to low repayments, this can be several thousands of dollars. They provide options in this scenario. Usually it requires you to pay up front, refinance, trade in for a new car or give it back. In the instance, you give it back you have paid thousands of dollars to essentially lease a car with no financial return. If you decide to trade in for a newer model, you either need to start the whole process again or your dealership will load your existing debts onto the finance amount of your newer model, leaving you with an imbalance in debt to asset ratio.

Here at Mortgage Choice, we have a car buying service which allows highly experienced buyers who are willing to do all the hard work and track down a great deal for an agreed price, ensuring you don’t agree to hidden extras. They will be able to find out which dealer, bank or union will give you the best service, and find an avenue that will leave you better off overall. This is also great as it helps take the stress out of buying a car and ensures you will be driving away, without a delayed burden on your shoulder. We do all the paperwork and running around, providing expert advice so that you can purchase will confidence.

If you’d like more information on 0% finance, or are interested in our car buying service, call Mortgage Choice Northern Rivers today. 

Posted in: Car loans & leasing

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