0% Financing
The goal of these programs were to sell cars and the auto makers hoped that 0% deals would do just that – and they were right.
Car buyers (currently in the market or not) flocked into auto dealerships seeking these financing 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 auto 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%.