i have seen i car i like £4995 19.9apr.looking for o per cent can you help,thanks in advance.silver fox
2007-06-18 20:08:06 · 5 answers · asked by aidanj 3 in Cars & Transportation ➔ Buying & Selling
0 % deals are never what they seem.
The way it works is. If a car is worth for example £5000 and the firm wants to sell it at 0%, they will whack the windscreen price up to about £7000 to cover the interest you would have had to pay if the car was being sold on regular finance for £5000. Geddit? You pay the interest without actually paying the interest if you get my meaning.
Look at it this way. At the end of the day, no car or lending firm is going to say, 'right, theres a loan for £5000, just pay it back when you can' They would never make any profit that way. A lender makes its money by charging interest on what it lends you
2007-06-18 23:03:55 · answer #1 · answered by Anonymous · 1⤊ 0⤋
1
2016-09-27 20:16:26 · answer #2 · answered by ? 3 · 0⤊ 0⤋
I am sorry to say that there is no such thing as a free lunch when it comes to car sales.
If a zero interest deal is offered ask your-self who is paying the interest, because there is ALWAYS a charge for borrowing money.
What is being done is that the interest charges are being disguised in the purchase price, putting it another way, if you find a car at a really good price, say a private sale or on eBay, there is no way in the world you will get a commercial interest free loan on it.
If your credit rating is good and you can get an 'interest free six months' on a new card and you pay it off I suppose you could do it that way, but that is nothing to do with the car, only your credit rating.
It is also wise to remember that often the profit margin on a car (particularly a new car) is tiny, but the commission the seller earns on the HP agreement makes the deal worthwhile.
This means that often a 'cash' deal is a lot less attractive to the vendor (the garage) than a finance deal.
2007-06-18 22:34:15 · answer #3 · answered by DavidP 3 · 1⤊ 0⤋
Save up for it and then GAIN interest on your savings.
Otherwise, use a credit card with 0% interest but be sensible and pay it off before the 0% period ends.
Not all garages accept credit card as payment though.
2007-06-18 20:11:41 · answer #4 · answered by PollyPocket 4 · 1⤊ 0⤋
not sure about Europe, but here in the US i know someone who bought a new Ford Truck F150 for zero percent. it was a sale they were doing. he got a great deal. hope that helps... although i don't even think the Ford F-150 trucks are street legal in your country because they are so big.
2007-06-18 20:13:40 · answer #5 · answered by JJ C 2 · 1⤊ 0⤋