Auto loans at 0%: the dangers of this offer

When purchasing a used or new car with no interest rate, the final cost usually increases significantly, for example, according to Consumer Reports Australia, the cost of a Nissan Pulsar with interest rate was $19,900 - $24,900, but the same car was purchased at a negotiated price. without interest and reached the price of dollars. Examples like this clearly show why we do not recommend entering into sales contracts without additional interest.

Typically, when a purchase process is set up for a used or new car, an agreement is made between the seller and the customer that handles the paperwork that make the buyer responsible for the payment for a certain number of months, this practice is called financing and in the vast majority of cases refers to the affiliated interest rate, however this is not always the case.

The practice of interest-free buying used cars is relatively recent, and according to Capital Plus Finance, it can be very negative for the buyer, even if he does not know about it. You see, usually the cars that are offered without financing are usually the cars that are left at the end of the month, they don't have purchase incentives, and they were hard to sell. Sellers take advantage of this situation to be able to make higher profits faster on vehicles that would otherwise be sold at very low prices due to their circumstances.

Again, in general sellers usually give a maximum period of 3 years to complete the payment for the vehicle in question, which is a much shorter period of time than usual when it comes to interest-bearing cars whose loans can last 4 to 5 years.. Therefore, the amount added to the final cost of the car will be reimbursed to the seller much faster, so the advantage remains with the seller in this situation.

One of the solutions proposed by the editors of Capital Plus Finance for this uncomfortable situation is Accurately calculate the monthly costs you will face before accessing any type of contract without additional interest.. This is because with .

In addition to the previous point, we recommend that you insure your car shortly after or before completing your used car purchase because they are usually more difficult to insure due to their history and the fact that they have had multiple drivers. , in the past. In this way, and taking into account this cost, you will be able to make a much more complete and informed decision. 

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