06 Aug Loans from car dealers
Car dealerships always advertise heavily on their End of Financial Year Sales with attractive low interest rates deals. The million dollar question however is… “Is it really 0% interest rate”?
One quick way to establish that is to ask the car dealership for the FINAL monthly repayment amount. Multiply that amount over the loan terms and add in any residual balloon payment that you have agreed to. If the total amount is NOT EQUAL to the DRIVE AWAY price of the car, how can it be 0% interest? In addition, most of the so called 0% finance deals come with restrictions such as no discount on the price of the car or fixed loan terms of the finance.
What about if the dealerships are advertising rates such as 1.9% or 2.9%? Simply work out using a Principal and Interest calculator that is easily available on the internet, compare that with the monthly repayment amount that is quoted by the dealerships and question them if there is any difference in the repayment amount.
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