If you want to find a 0% car loan, you will have to be very vigilant and very patient. But are we sure to get the best deal in the end? A car loan without interest is a priori interesting, but will we get the same reductions on the price of the car? And above all, the 0% car loan is mainly reserved for certain very short repayment periods? We conducted the auto credit rate survey to get the best ones.
Why a 0% auto loan?
You must first know that the auto loan at 0% rate is not supposed to exist for legal reasons. The car loan is very framed by the law :
As in any commercial activity, selling at a loss is prohibited . Offer a cheap car loan, no problem. But a 0% auto loan should not be legal! So how is it possible? Well, in reality, the interest on the 0% auto loan is borne by the seller. This is also a legal obligation and it is also supposed to be written in the mentions of all advertisements mentioning a 0% car loan.
On the other hand, the term free credit is banned and it is 0% fixed APR auto credit that you should see everywhere (the legal approach considering that free credit is a “Crime Push” for short, if you you want to know more about all these subtleties, here is the link to follow: legal info.
Is 0% Auto Credit a Good Deal?
Obviously, when it comes to credit, the 0% auto loan is unbeatable. We can therefore only encourage you to take advantage of this offer if it is compatible with the car you are looking for and the period in which you want to make your purchase. But as it is reserved for the new car loan, check before that the discount obtained on the price of the car is sufficient.
Otherwise, we have necessarily the best car loan rate to offer you. We regularly record all the credit rates for all the projects, all the durations and all the amounts at the largest credit organizations and we offer you a personalized ranking of the best rates of the moment. Of course, the 0% car loan remains the exceptional specialty of dealers, but we have very attractive rates all year round and for all models.
ur exclusive questionnaire will not only allow you to get the auto loan comparison of the best rates but you will also increase your chances of actually obtaining this best rate compared to your file.
Indeed, you will have the possibility to question the 3 cheapest organizations to know if they are ready to follow you. This means that even if the cheapest credit is not granted, you are not left with nothing since you still have the 2nd and 3rd cheaper. You will also benefit from an automatic evaluation without commitment on the part of the organization which offers the best rate for your project.
Of course, there is no 0% car credit on our site because we are not dealers but with the explanations which follow, you will be able to ask yourself the right questions.
Auto Credit Traps 0%
The only 2 traps that can exist with the 0% car loan are that on the one hand the financing could not be adapted to your need and on the other hand that the dealer takes advantage of it not to give you the right level of reduction on the price of the car as such.
Auto loan 0%, suitable financing?
It should be known that in matters of credit, the communication of the organizations mainly uses hooks on the rate. In general, they are more like credit hooks from 2.70% or credit at 2.80% . But did you know that these rates correspond to 12-month repayment periods?
In fact, the less the credit lasts, the less risk the credit institution takes and therefore the more it can offer attractive credit. The problem is that in this case, the monthly payments to be reimbursed will be astronomical. For example, if you take a 10,000 USD loan over 12 months and even if it is a 0% car loan, your monthly payments will be more than 830 USD !!! There are not many people who can afford this .
So the 0% car loan, if it is not valid for short periods, it is not sure that it corresponds to your need … And therefore be careful that it was not just used to make you come to the dealership and then offer you rates at 7% or 8% for a credit over 48 months or 60 months! We have cheap credit offers with much more attractive rates on our comparator.
The car at what price for a 0% credit?
The second trap to avoid if you can benefit from a 0% car loan is not to benefit from a sufficient discount on the car. We may not give you gifts on all floors … If you benefit from a big rate cut, the drop in the price of the car will probably be less significant. But in the end, it shouldn’t cost you more than if you had a superb discount on the car.
To find out if the 0% car loan is worth combining the discount on the car, we advise you to simulate a loan to find out how much it would have cost you and finally see how much money a 0% car loan corresponds to.
For example, the cheapest car loan for a credit of 15,000 USD is currently (October 2014) at 3.80% fixed APR over a period of 48 months for a monthly payment of 336.91 USD and a cost of credit of 1,171.68 USD.
You can therefore consider that a car loan 0% (if it is offered up to a duration of 48 months) is equivalent to a discount of 1171.68 USD. Either on the purchase of 15,000 USD, the equivalent of a 7% discount. So look at the prices of the discounts that are charged on the model you buy to know if you are getting the best deal or not.
Example of auto credit 0%
The 0% car loan is not just a legend. These past few days, you probably haven’t been able to miss the 0% amphibank car credit advertisement that you can find on their site.
This offer offers a 0% auto loan over 36 months with an initial compulsory contribution of 10%. If we roughly redo the calculation of the previous paragraph, taking for example a Polo around 12,000 USD. The discount will be that equivalent to a credit of 10,000 USD (12,000 minus 10%) over 36 months. Or a credit cost of around 600 USD from what can be found on our credit comparator. Or about 5% discount on the price of new.
Auto loans 0% therefore exist and can really be good business. Just be vigilant about the repayment periods to which it gives right and do not neglect to make a good negotiation on the price of the car.