0% car finance is emerging as one of the most sought after auto financing options in the UK. This would mean saving thousands of pounds which would have otherwise gone towards interest. And so, buyers are getting attracted to this conception. Now, have a look at the truth behind this apparently easier strategy.
Statistics reveal that only one-third of buyers who apply for zero percent financing actually gets qualified for the loan. There are quite a few conditions that you need to fulfil.
Credit Score: Zero percent car finance deals do consider your credit report. The guidelines for credit are very severe. Bad credit record prevents you from getting the loan. These deals demand an out standing credit score of more than 700. This very credit score criterion declares one ineligible for zero percent car loans since an ordinary borrower will be having atleast one bad remark in his credit history.
Select Models: These loans are applicable only on a few selected models of cars. The trap lies again at the fact that, these selected models are usually those which are not in demand or those which have a poor performance so far as fuel economy, mileage or efficiency is concerned. This is, most times, the dealers attempt remove such vehicles. Sometimes vehicles may be available in desired models. But colour and interior designs may not satisfy the buyer's desire.
Short Duration: Dealers offering zero percent car loans typically assume another interesting tactic- specify shorter loan terms. A maximum term of 36 months is usually fixed by these dealers where as a typical buyer prefers to finance a vehicle for 48 to 72 months. It's true that no interest is charged. But owing to the shorter duration, the monthly payments will be higher.
It will be nothing less than a fragment of absurdity if you take 0% car finance deals for the best deal available. Do spend time to check out other car financing options to avoid future inconveniences.
