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| *Ostroff, Fair and Company>>>Personal Finance |
What is the catch on a 0% APR Automobile Loan?? |
Everyone advertises 0% on car loans but there has to be a catch?? There is no such thing as a free lunch. In this case, provided you have suitable credit, they DO give you an interest free loan. However, you will also pay full price, no rebates, no special sale price, nothing. The term of the loan is also relatively short which means a relatively high monthly payment, which they hope you miss or be late to pay, so they can hit you with the default rate which can exceed 25%, and can even be retroactive under certain circumstances! none. the only catch is that their trying to get you to buy their car/cars for 0% apr. if you have a 720 or better fico score w/ good history The catch is that you don't get rebates and typically don't get a good purchase price on the car. Your credit has to be outstanding and the term is short. Often if you miss a payment the rate will default to a high rate. Most often you won't qualify and they will offer you rebates they apply against the down payment. I would like to have that problem. It is very expensive to have a car fitted with the correct equipment to allow a paraplegic to drive. you need to have at least 820 credit score No catch really- they're just desperate to move cars sitting on the lot. U typically find hardcore dealer incentives like that from American car companies like Ford, GM, and Chevy cuz they're getting royally shellacked by the Japanese players. They figure that theyd rather just sell the car than try to make money on interest payments. Nearly all interest-free or "no payments for 6 months" packages however do have some provision whereby missed payments automatically roll back to some ridiculously high default rate- but then again, every credit issuer does that. |
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