- 1 Get Qualified For A Zero Percent Car Loan Online Today
- 2 Zero-percent financing for new car turns heads, but may not be best deal
Get Qualified For A Zero Percent Car Loan Online Today
One of the best ways to buy new cars is to qualify for zero percent car financing deals. There may be few auto loan dealerships which provide special programs for purchasing brand new vehicles to borrowers who have good credit histories. Typically, such types of car finances have highly restrictive loan pay-off agreements, higher down payments and shorter loan terms. Besides, there might not be any closing costs to be paid. However, qualifying for such programs may not be that easy.
5 Important Tips For Finding The Best 0 Percent Car Loans
While the process to apply for zero percent interest auto loans is simple, to improve chances of a qualification for a 0 percent car loan, borrowers need to follow certain crucial guidelines which are mentioned below.
- Check accuracy of credit status Prior to considering applying for such types of zero pecent auto finance loans, it could be always better if a borrower verified the accuracy of credit status.
- Find a reputed online website Before borrowers proceed with the application process, it could be essential for him to make sure that he has chosen a website service that is reputable.
- Go through the loan fine print It could be vital for an applicant read the fine print of loan contract and ensure that he understands all the terms provided by lender.
- Shop interest rates and terms For getting the best deals on 0 percent
interest car loans, borrowers must find out what other banks and credit unions. So they must compare rates and terms offered by different lenders.
Getting Zero Percent Interest Carloan2 Major Considerations
A borrower, who is out to obtain a zero percent financing car loan, needs to make an informed decision. To that effect, he may take the following factors into consideration.
- Type of loan that is being sought It could be desirable for an applicant to what exactly he has been looking for. Is it low rates of interests or longer loan durations?
- Beware of 0% introductory rates Some lenders offer car loans with zero percent interest rates initially. After a few months or say a year, they may charge interests, so beware.
The 4 Major Benefits Offered By Our 0 Percent Car Loans Online
Zero percent financing on new cars may prove to be extremely beneficial for borrowers who have excellent credit ratings. The main advantages of securing a zero percent car finance loan are:
- It will have a shorter loan term
- Monthly payments affordable
- Possible to pay the dues quickly
- Choose rebate or 0% interest rate
Zero-percent financing for new car turns heads, but may not be best deal
DETROIT (AP) — When a car dealer offers to loan you the money to buy a car at zero interest, it gets your attention. Yet that cheap money might not be the best deal you can get.
Dealers can offer zero-percent financing through automakers’ finance companies because, unlike banks, they make money on the sale of the car and don’t need to rake in interest payments. Zero-percent financing offers have been common in the last four years as auto sales recovered from the recession while interest rates remained low, says Philip Reed, a senior editor of consumer advice at the car shopping site Edmunds.com.
Not everyone will qualify. Zero-percent financing is generally reserved for those with the very best credit. Experian Automotive, which tracks auto loans, says 7 percent of new car loans had an interest rate of 1 percent or lower in the first quarter of this year. By comparison, 29 percent of new car loans had interest rates of 2.05 percent and below.
Before biting on the zero-percent financing, check for other deals such as cash-back offers. Fiat Chrysler, for example, currently has two offers for the 2015 Jeep Cherokee SUV: zero-percent financing for 60 months or a $2,000 rebate. Edmunds recommends taking the cash to reduce your total loan amount for the base all-wheel-drive model from $27,123 to $25,123. Even with a 2-percent interest rate, you’ll wind up paying $440 per month with the cash deal. That compares to $452 per month with zero-percent financing.
Late summer is a particularly good time to scout for deals, and automakers will soon be trying to clear 2015 models off their lots. Ford is currently offering no-interest financing for up to 72 months on most of its cars and SUVs, while Toyota is offering zero-percent financing on the Camry and Prius sedans. Buyers can also get zero-percent financing on the Buick Enclave and Hyundai Santa Fe SUVs.
Here’s some more advice on financing from the experts:
— HOW GOOD IS YOUR CREDIT?: According to Experian, new-car buyers who obtained interest rates of 1 percent or less had an average credit score of 754. For reference, that’s considered “prime” credit; “super prime” scores go all the way up to 850. The average credit score for a new car buyer in the first quarter was 713, and the average interest rate was 4.7 percent. Reed says it’s good to know your score before you go to the dealership. Even better: Get preapproved for a car loan through a bank or credit union before going to the dealership.
“It puts you in a stronger position when you go into the finance room to say, ‘I’m preapproved at 2.9 percent,'” he said. “They will try to beat that. Dealership financing can almost always beat banks and credit unions.”
— DO THE MATH: Buyers can currently get zero-percent financing for 60 months on a 2015 Toyota Prius, or get $2,250 in cash. The cash-back offer will lower your monthly payments if you get an interest rate of 3 percent or lower, because even though you’re paying more in interest, you lowered the overall price of the car. But if the rate is higher than 3 percent, zero-percent financing will lower your payments.