Acquiring and owning a car has become almost an inevitable necessity these days. But everybody cannot afford to by new cars. Such people often opt for used cars or nearly new cars. Also, it is not possible for every one to purchase a car paying the entire amount directly. There comes the significance of loans and such financing deals.
You will come across a whole lot of loan providers in the market nowadays. If you have decided to go for a loan so as to realize your long cherished car dream, look for the best deal available in the market before homing on to a particular car deal. One of the attractive offers that are being proposed by car dealers these days is zero percent finance on brand new cars.
A car dealer offering zero percent finance usually will be having a specific customer at mind. They offer it to individuals who can actually afford such an offer. For such deals, the customer needs to have a somewhat outstanding credit background. So zero percent car loan deal is something of a mere mirage to an ordinary client, for most probably an ordinary person is likely to have at least one blemish in his or her credit report. Usually it is to already existing customers that car dealers propose such deals. For new clients, they set up a standard for credit background such as income parameters, location of the customer, employment or business status, or even the assets that the customers own.
You might be asked to put down a pretty good deposit on zero percent deals. Don’t declare it as ‘unusual’ if at all you are asked to deposit as much as half the value of the car!! The balance is payable in the form of monthly installments with out ant interest hassles. As compared to regular credit terms that have interest, credit terms for zero percent finance are usually much shorter, generally below two years. This obviously implies that the monthly installments that should be paid will be some what sky high. But then with longer credit terms, the contract price tends to be higher because the interest rate is induced for a long period of time.
In case you are unable to pay your monthly installment of the zero percent credit term on time, as a penalty you need to pay a high interest rate. You also need to pay other penalty charges which make your deal much more expensive than what you could imagine.
Another aspect of zero percent car loan deal that deserves a special look is the fact that this particular financing is always restricted to certain makes and models of cars only and not to all models. Normally, these will be cars in stock that the dealers want to get rid off. If at all the model is okay with you, you may find it difficult to get the color and interiors of your choice with these zero percent car loan deals. You are supposed to be satisfied with what the dealer offers you, even if it is a brand new car.
Though not always workable for an ordinary customer, zero percent car finance is definitely a good marketing strategy that the business can employ to attract customers; and is definitely emerging as one of the most sought after car loan deals in the United Kingdom. The thing is that the zero percent car finance does work both for the car dealer and only those customers who can afford it.