0% Finance On New 151 Renault Cars

Zero percent financing used cars

0% APR Finance across the Renault Range*. Offer ends 31st of July 2015.

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*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.

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Zero per cent finance can cost more

Zero percent financing used cars

Low-interest-rate deals are starting to reappear as car companies attempt to disguise price rises driven by a weaker Aussie dollar, or mask heavy discounting on slow-selling models.

Either way it can be confusing for car buyers trying to determine if it's a good deal or not.

In many cases it can be better to haggle a sharp price and arrange your own finance outside the dealership. But sometimes the deals in the showroom do add up.

We did some number crunching on one deal.

At least one leading brand is currently offering 0 per cent finance on quite a high retail price of $24,990 drive-away for a small car that has in the recent past limboed to $19,990 drive-away.

At 0 per cent finance over five years the $24,990 price would cost $417 per month, presuming there are no other hidden charges or establishment fees.

Make sure you find out the total interest and total amount you will repay over the life of the loan

But what happens if you buy the car at $19,990 drive-away and arrange your own finance?

If you have a good credit history, you may be able to wrangle a rate of 8 per cent. According to online calculators, that works out to be $405 per month over five years, paying $4329 in interest, bringing the total cost of the car to just $24,319.

It always pays to get more than one quote. Make sure you find out the total interest and total amount you will repay over the life of the loan.

Dealers often make more profit from finance deals than they do from the sale of the car itself.

One more tip: don't just look at the monthly repayment figure (finance experts can make this figure look small by stretching the repayment terms, which means you pay more interest for longer).

The longer the repayment period, the greater chance the payout figure will be more than what the car is worth at trade-in time.

zero percent financing used cars

Dinero, we all know that the car companies aren't giving the cars away for with no profit for them.

If you want a good deal on a car, wait until it's 3 years old and try to buy one with less then 30,000 miles on it so the majority of the depreciation has occurred.

If you want a good deal on a car, wait until it's 3 years old and try to buy one with less then 30,000 miles on it so the majority of the depreciation has occurred.

I for the most part use my own financing on purchases and negotiate a out the door price. I do work one dealer against the other. Back when I leased my work trucks I negotiated the payment because I needed a fixed cost for spending projection.

Zero Percent with 0 Interest Car Loans

Date: February 20, 2012

Lots of Advertisement and Campaigns been run by Car Dealers to Car Manufacturers from time to time advertising that they can provide Finance at 0 % or No Interest Car Loans. Wondered, when Banks are taking deposits at 10%, then how is it possible to lend Car Loan at 0% !!

No Bank or Financial Institution or Dealer is mad to spend money on advertisement that they want to incur losses by lending at Zero Percent. There is a gimmick involved in it. Heres the gimmick :-

Say, eg You Intend to buy which is priced at say Rs. 11 Lacs and wants to take Finance of Rs. 7 Lac for 36 months

Scenario is that the Rate of Interest of Bank is 11%, and there is discount on car worth Rs. 1,00,000 going on. Now, do understand - how is zero percent finance been calculated

Car Loans at Zero Percent Vs. 11% Scenario

In Actual Scenario, the EMI would be Rs. 22,918 for 36 months. Total Outflow for 36 months would be Rs. 8.25 Lac on loan of Rs. 7 Lac for 36 month @ 11%. Interest Outflow during entire tenor would be Rs. 1.25 Lac on stated loan amount which is payable to Bank.

Now in Changed Scenario wherein dealer is running campaign of 0% Scheme on Car Loan, the Loan here would again be at Rs. 7 Lac, but instead of passing upfront discount benefit on car to customer, the dealer will merge in this discount on car in the Finance Scheme. So, even though if you are taking Loan of Rs. 7 Lac, Bank is effectively making payment of Rs. 6 Lac to Dealer. Your EMI will turn out to be Rs. 19,644 . Interest will be shown on loan of Rs. 7 Lac at .66% , which is effectively at Zero Percent. Your Car Loan Statement of Bank will show in Loan of Rs. 7 Lac, Tenor 36 Months and Interest Rate at .66%. However, fact is that Bank is now calculating Interest on Rs. 6 Lac , due to 1 Lac discount been merged in Finance .

Now Which Scenario is Better

We suggest to always have Plan A, to take upfront discount rather than Plan B to have Zero percent scheme. Reason - Even, if you cant plough back this money in business or any other stream, even FD returns on 1 Lac amount would be at least Rs. 25,000 after TDS in 3 years. Hence, why to block this money in lower EMI unless, you are on heavy debt and only focusing to lower off your EMI.

What You Need To Know About Zero-Percent Car Loans

Zero percent financing used cars

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 used cars

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.

Zero percent financing used cars

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.