what is zero percent financing?

Question

I,m not a expert on interest rates but i,m in the market for a vehicle and i keep hearing zero percent financing at dealerships. is it a good thing will it end up screwing you over in the long run.

Answer 1

0% financing means you do not have to pay any interest on the principal of the loan amount. Meaning, you are borrowing the money for free. Many reputable car dealers will offer 0% financing to top tiered clients who have excellent credit score and history. Some dealerships will require you to put down a large downpayment to qualify for 0%. Some will only offer 0% financing to vehicles they have hard time selling. Please do you research on-line to find out more about the car you want to buy and approach the dealership with caution. Ask a lot of questions, and if your gut feeling tells you something is not right, just walk away from the dealership. There are plenty of dealers out there who can help you get a 0% financing.

Answer 2

What Is Zero Percent Financing

Answer 3

Zero Financing

Answer 4

Zero% financing does not exist, it never did. It's a marketing scam to make you THINK you're getting zero%. What they did was add the interest to the cost of the vehicle. If you are offered a car with zero% interest, but you arrange your own financing, be sure that they take off the added interest before you finalize the deal. Otherwise you could be paying their 8% interest that they've added to the price of the car plus your 8% interest from your own financing. A $25,000 car at 8% for 5 years will cost you about $5,000 in interest. Guess who pockets the additional interest on the car! Ain't you! Loan companies cannot make money on 0% loans without adding a huge fee to cover their overhead and profit. It's like buying a $100,000 home. You can pay $100,000 for the home at 6% interest or you can pay $205,000 for the home at 0% interest.

Answer 5

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RE:
what is zero percent financing?
I,m not a expert on interest rates but i,m in the market for a vehicle and i keep hearing zero percent financing at dealerships. is it a good thing will it end up screwing you over in the long run.

Answer 6

In most cases, the "no interest financing' is offered in lieu of a substantial cash rebate at the time of purchase. Read the proffered agreement very carefully. While I do not have experience with such arrangements, I have heard horror stories about your 'zero interest' disappearing if you are so much as late on ONE payment. Check ALL the fine print before you sign.

Answer 7

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It means that for every $1,000 you borrow your payment will increase by $27.78 per month. So if you finance $10,000 your payment will be 10 times $27.78 or $277.80 per month. $20,000 will be 20 times $27.78 or $555.60 per month. If you take $1,000 and divide it by 36 months, you get $27.78. You are truly paying no interest. If you were paying any interest, it would be more than $27.78.

Answer 8

0 percent financing means you just pay back what you borrow and it is a great thing that means the loan costs you nothing

Answer 9

0% financing for 12 months (for instance) is when you dont have to pay interest on a car or ?. Like $250.00 a month payment and 5% interest a year 250.00 month times 12 months is $3000.00 year and interest 5% interest $150.00 a year financing or interest charge.

Answer 10

It means that you only pay the price of whatever you are buying without any intrest attached to it. If you buy something that cost 10k you only pay 10k. Of course, if you add extras, like insurance or somethimh else that would be added to the 10k.