0% Financing May the Best Deal
Posted in Business, Business Loan on August 7th, 2010 by admin – Be the first to commentNearly a decade ago, struggling auto makers began offering 0% financing deals for new car buyers.
The goal of these programs were to sell cars and the auto makers Hoped that 0% deal would do just that – and they were right.
Car buyers (currently in the market or not) Flocked into auto dealerships seeking financing these deals. And, while some qualified for them most, did not. Once the buyer was in the dealership, the hard sell began – making it nearly impossible for the consumer to leave without a new vehicle – regardless if they qualified for the 0% financing or not.
Are these 0% financing deals really all that beneficial? Maybe? But, for the majority of car buyers they really offer very little incentive – here’s why:
Most 0% financing deals are for only 36 months (3 years). Which is OK if you can afford a very high payment. Example, Ford is offering a 36 month, 0% financing deal for their Focus product line. A standard Ford Focus is priced around $ 17,000. Financing this vehicle, assuming 5% down, puts a payment around $ 449 for 36 months at 0%.
