#0 financing on new cars
0% Car Financing with Car Loans Canada
Zero percent financing on vehicles has been so successful that other markets, such as the credit card industry, have begun to adopt the concept. The research is quite interesting, as it shows that roughly only a third of buyers who apply for 0% car financing ultimately qualify. Further only about 10% of those who qualify actually buy a car, according to the National Automobile Dealers Association.
At first, these numbers may seem a little puzzling, until you realize one very important fact. In order to qualify for 0% car financing, an applicant needs to have near perfect credit. That s right, near perfect credit!
Frequently, qualified buyers who receive the 0% financing, overpay for their vehicles as they fail to negotiate the price. Why? They have mistakenly assumed that they have already received the best deal available, but they are wrong.
Just because you receive 0% financing doesn t mean you are getting the best deal possible. These offers are usually structured as 0% down or $10,000 cash back or a similar offer. Here is an interesting fact; that $10,000 in cash that you losing by taking the 0% option is the actual cost of borrowing. This often translates to car loan rates that are, in fact, significantly higher than those of traditional car loan rates. The following is an example.