Many of us have been intrigued with the term zero percent car loans in some enticing commercials and ads. These commercials ensure that you can get a brand new car without paying one percent as finance fee. But does such scheme really exist and do such dealers bid on their words after approaching them is a big question that comes in mind. If such convenient loans exist, why haven’t there been success stories on them? But the fact is such loans exist and they wonder around just like any other loans. As they are tricky to get, most of the time they are been ignored.
The rules are really tough for these types of loans. They usually offer loan on only selected models in the dealership and doesn’t allow any other vehicles. Individual credits should be perfect in the eligibility criteria. They also consider certain income level that is much higher than average consumer expectation. In real only 5 percent of car buyers may get qualify for such type of car loan? Besides that this type of loan is kept out of reach of many buyers due to its relatively short pay-back period. However, some car buyers may find it suitable for them if they are well prepared to pay the amount in as low as 2 year or so. Buyers may also be offered to pay some substantial down payment that can be around 25 percent of the total cost of car. This can be lower your monthly repayment to a very large extent.
Though qualifying for zero percent car loans is exciting deal for buyers, it is must to do some research on various car models in advance. Before approaching dealers just find out the exact cost of cars so that you may not be mislead by them.