Car dealers have been using the old 0% car financing marketing ploy in order to get customers to walk through their doors for years but if you look a little closer, you will see the fine print states this type of deal is limited to only those who qualify through their minimum credit standards. What does this mean to average car buyer? It means your credit will have to be somewhere in the 700 range to be considered.
Of course, if you have stellar credit and the vehicle model you saw advertised for 0% financing is the one you want, you are in luck. Dealers use this type if deal to get more customers, knowing full well less than 30% of them will qualify for this type of loan. The fact that these types of auto loans are so hard to get puts many consumers in jeopardy of paying a much higher interest rate than originally anticipated f they are not careful.
This is why it’s extremely important to know your credit score before you visit the auto dealership so you can have the leverage to negotiate a good deal.
Even if you are someone with excellent credit, you may visit the dealership and find the vehicles you really want do not offer 0% car financing offers. Sometimes, when you are purchasing a car with zero financing it is only limited to 36 months or less which is a term most consumers won’t commit to because they can’t afford the high monthly car payment.
Even though experts always recommend buying a car with a 36 month financing term, most car shoppers are looking for a 48 or 60 month term when they finance their vehicle so they can afford the payments.
Once car buyers are at the sales office discussing their car selection and available financing options, they may be informed the 0% car financing option is not available to them because of their credit or the particular model of the vehicle. At this point a consumer is likely to accept a different and much less favorable financing option so they can walk out the door with keys to their vehicle in hand. Instead, consumers should be aware of this obvious tactic and they should continue to try to compare financing options in order to play their cards right in pitting one finance company against another.
All in all, it’s wise to take advantage of a 0 car financing deal if you know your credit is worthy enough but if it’s not, take a smart approach and get the best deals on auto financing by being prepared.