- 1 Get Qualified For A Zero Percent Car Loan Online Today
- 2 0% Finance On New 151 Renault Cars
- 3 Zero Percent Finance Car – Is It Really Possible?
- 4 Zero-percent Car Financing – Fact Or Fiction?
- 5 What You Need To Know About Zero-Percent Car Loans
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
0% Finance On New 151 Renault Cars
0% APR Finance across the Renault Range*. Offer ends 31st of July 2015.
Complete the form below or call us on 01-9023024 to enquire about this offer
*Finance example CAPTUR LIFE TCe 90 S&S RRP €19,590. Deposit €8,970. Term 36 monthly payments of €295. APR 0% Total cost of credit €0, no documentation or completion fee apply. Subject to lending criteria. Offer is made under a hire purchase agreement as defined by the Consumer Credit Act 1995. Renault Finance is a trading name of RCI Banque Branch Ireland and is authorised and regulated by the French authority and supervised by the Central Bank for conduct of business purposes. Subject to lending criteria. Visit Renault Belgard for more details. Warning: You will not own these goods until the final payment is made.
© 2017 Renault - Images for illustrative purposes only. Please check with your Renault Dealer for specification details.
Zero Percent Finance Car – Is It Really Possible?
You feel like buying a rather expensive car this summer. But there is a problem – you are not a wealthy guy. Do not despair. You have a choice of a range of best deals on offer in the auotomotive market, popularly described as zero percent finance for cars. How does this work and are they really for you?
Almost all car dealers who offer a zero percent finance,have a sales plan in place. They will have outlined a porfile of the prospective customer. Quite obviously, a major criteria would be that the customer should have a good credit standing. SO, normally such offer will be made to existing customers. New customers would be judged for credit background on several parameters like, income, location of the customer, employment or business status, or even the assets that the customers own. For obvious reasons,credit term is usually shorter than the normal regular interest credit scheme, often below 2 years. It will result in higher EMIs(equated monthly instalments).
EMIs always change in inverse proportion to duration of the loan – shorter the term of credit, the higher the amounts payable per month and the longer credit period, the smaller amount to be paid per month. Ironically, if you opt for a longer suration you will end up paying more amount simply because interest rate is induced for a long period of time. You will find that you will hav paid more than 20 times the retail price. Also, failure to pay the monthly payables of the zero percent credit term will result in higher interest after that as a penalty for not paying on time. In such eventuality, you will actually wnd up paying higher than the amount paid under zero percent because of the interest and other penalty charges. Finally, the the car is priced higher than cash down value. For example in a zero percent scenario, the car is offered at say $100,000 on display for 2 years to pay having a monthly payable amount of $4,166. The $100,000 price is actually still higher than the actual value of the car. The car dealers usually know that the car value is only say $70,000 but if offered at zero percent credit, they would price it at $100,000.
From the foregoing you will wonder, and rightly so, what advantage does zero percent finance car give you the as the customer.
On ther other hand this is certainly a good marketing strategy for auto dealers. And it will definitely help those who can afford the terms because it always better than paying longer credit period. So, the zero percent finance car is a good marketing strategy for the car dealer. It is also beneficial for the customer who can afford it.
Zero-percent Car Financing – Fact Or Fiction?
What does zero percent financing really cost? Car dealers have been very successful with their zero percent financing campaigns – so successful that the concept has been repeated in other industries such as electronics, furniture sales and credit card companies.
According to CNW Research, only one-third of buyers who apply for zero percent auto financing actually qualify and only 10% of those deals actually close according to the National Automobile Dealers Association. CNW Research goes on to state that many zero percent qualifiers overpay for their cars, since they assume they’re getting the best deal available and they fail to negotiate price. Automotive manufacturers use their own financing companies to underwrite these zero percent loans, each of which have their own credit qualifications. Generally speaking an applicant must have close to perfect credit to qualify for zero percent financing.
If you have been one of the fortunate ones that didn’t get lured in with the 0% financing offers only to get switched to a higher rate because of “blemishes” on your credit and the dealer is now offering you that “free” money, here are some drawbacks you should be aware of before signing that deal.
Shorter Loan Terms. Some dealers offer 60 month terms, but 36 months is average. This means your monthly payments will be much higher.
Limited Inventory. The zero percent offers are generally reserved for models that are suffering lower sales and is almost never offered on pre-owned inventory.
Cash Back. Have you every noticed the “or” clause in those zero percent advertising ads “0% or $10,000 cash back?” That $10,000 you lose by opting for the zero percent financing is the actual cost of borrowing. This often equates to an interest rate much higher than a traditional car loan.
Adding up the Numbers A recent search of the website of one of the Big 3 automakers shows an offer of zero-percent financing on a 2005 mid size sedan. This is how the numbers work out.
What You Need To Know About Zero-Percent Car Loans
By Ronald Montoya
Zero-percent loans are often advertised as one of the best deals you can get when you’re buying a new car. You’ll sometimes hear people call such financing “free money.” It’s not that exactly, but it’s as close as you’re likely to get. Zero-percent loans tend to grab attention, but they make up only about 9 percent of the dealer-financed car loans in 2015 to date, according to Edmunds data.
Provided you can qualify for a zero-percent car loan, it sounds like a no-brainer. But is it really a good deal? Are there any catches? And if you were planning on paying cash, is it even worth considering?
How Can It Be Zero Percent?
Zero-percent loans are typically offered by automakers’ financing companies. They forgo the money they would have made on loans with interest in favor of selling more of a particular vehicle. This financing incentive can spark sales of a slow-selling vehicle or help clear out inventory to make room for cars from the new model year.
“The availability of zero-percent deals follow a pretty rigid pattern,” says Jeremy Acevedo, senior analyst for Edmunds.com. Zero-percent offers peak in the summer months to stimulate sales for the outgoing model year and stay “relatively subdued” in the other months, he says.
Zero-percent financing is often used to help spur sales and clear a dealership’s inventory of an outgoing model.
Carmakers advertise the no-interest loans in commercials, at dealerships or on their websites. We suggest taking a look at Edmunds’ Incentives and Rebates page. It highlights zero-percent financing offers and other promotions for the month.
Sometimes a dealership will offer its own version of zero-percent financing. In this case, the dealership opts to pay the interest on your loan, either to sweeten a deal or as an incentive for you to make a large down payment. It typically occurs when a buyer already qualifies for a loan with a low annual percentage rate (APR) and the amount being financed is a figure the dealer deems reasonable.
Zero-percent loans are typically reserved for buyers with excellent credit. The fine print on automaker websites often says things like “for qualified buyers” or “based on Tier One credit.” The language doesn’t really spell out what that means in terms of FICO scores. And the range itself can vary from one automaker to another, so we suggest calling the dealership to see what the requirements are.
Just what is “Tier One” credit, for example? It’s a FICO of 690-719, according to one Washington state Toyotadealership that posted its credit tiers online. But that’s just one brand and one dealership’s numbers. According to credit services company Experian, 752 is the average credit score associated with loans that have an APR of less than 1 percent. As a general rule however, if your FICO score is above 700, you should be able to get a zero-percent loan.
If your score is slightly lower, zero-percent offers are still worth looking into. There have been cases of people getting approved because of a solid history of making payments on time and loyalty to a car brand — despite having a lower credit score.
Bonus Cash or Zero-Percent Loan?
There are times when the automaker gives consumers a choice between bonus cash or a loan with a very low interest rate. The bonus cash would usually be the way to go, but when it comes to zero-percent loans, the cash would have to be sufficient to offset the finance charges the buyer is saving.
For example, let’s say you were buying a $25,000 car with a $1,000 down payment and you’ve qualified for a loan with an interest rate of 3.5 percent. You then have a choice: a bonus cash incentive or a zero-percent loan with no additional discount. It would take an incentive of about $2,500 to beat the zero-percent loan offer. Any amount of bonus cash less than $2,500 makes the zero-percent loan the better option. Use these calculators to input your own scenarios and see what option works best for you.
There’s also a third option to consider. Increasingly, consumers are taking the bonus cash and then refinancing the interest-bearing loan at a lower rate later, says Melinda Zabritski, senior director of automotive finance for Experian.
Even if your credit isn’t perfect, it is still worth checking with the dealer to see if you qualify for zero-percent financing. Photo: iStockphoto
What’s in It for a Cash Buyer?
If you planned on buying a car for cash, there might still be some value in taking out a zero-percent loan. The biggest benefit is that it allows you to keep your money free for other purposes, such as an emergency fund or for investment. There is no penalty for paying off the loan early. Having financed a car appears as a positive mark on your credit report. Buying for cash doesn’t show up at all.
In some cases, the dealerships may be getting an incentive from the automaker to promote a zero-percent loan, so taking the dealer’s financing may help you obtain a better price on the vehicle. The automaker typically pays the dealership a bonus on the back end of the deal, which in turn would allow it to be more flexible with the price. It isn’t a common occurrence, but something you should be aware of in case it comes up.
Zero Percent Do’s
Do make sure you really want the car. Just because a car has a zero-percent loan offer doesn’t mean it is the right car for you. Make sure you test-drive it to be sure it fits your needs.
Do get pre-approved for a car loan. It is still a good idea to secure financing with your bank or credit union before you go car shopping. This pre-approval can serve as a backup loan in case you don’t qualify for a zero-percent offer. It’s also useful to have a loan in hand so you can compare its interest rate to the dealership’s financing. You might decide your bank loan, and the dealership’s bonus cash offer makes the most sense for you.
Zero Percent Don'ts
Don’t skimp on the down payment. Some dealers may give you the option to put nothing down at signing. We recommend you put down as close as you can get to 20 percent. If you can’t manage that, consider gettingGAP insurance to offset depreciation.
Don’t take out a loan for more than 60 months. Some automakers offer a 72-month loan to help make the payments lower, but there are many drawbacks to taking out a longer loan. The car’s value will have greatly diminished by the time you finish paying for it. And there’s a good chance you’ll be tired of your 6-year-old car just about the time you make your last payment. A long loan may keep you from owning, free and clear, a car you still love to drive.