Car dealers offer cars with zero down payment and zero interest rate. This is not a free lunch, but a way to promote sales. In fact, this move by car dealers is not much different from its price reduction. Car dealers offer zero down payment, but divide the down payment into several months. It seems that you are not required to pay in one lump sum, but in fact you are not underpaid. It's just that the object of collecting money is the bank, not the car dealer, and there are some interests. This is especially true of zero interest rate. Buying a car in a car dealership, 1 or 3 years seems to pay less monthly interest, but there is a price to pay. Generally, to apply for a car loan with zero down payment, the loan applicant needs to mortgage the property, which means that the applicant must have the property title certificate in his own name. If you can't mortgage the property, you need to pay a down payment of 30%, and then pay in installments over three years.

Buying a car with zero down payment and zero interest is mainly aimed at slow-moving models or stock cars, and it is impossible for hot-selling models to enjoy such a policy. Zero interest is actually the offset of the car price. When adopting the zero interest rate policy, consumers can't enjoy the price concessions of this model, and fine products such as steering wheel cover, seat cushion, reversing radar and sunshade film can't be obtained for free. In addition, car damage insurance, theft insurance, commercial insurance, compulsory insurance, deductible insurance and other types of insurance purchased by consumers when they borrow money to buy a car are not allowed to be purchased by themselves and need to be purchased by car dealers. In fact, consumers benefit from zero interest rate, but other benefits supplement the interest loss of businesses.

The risk of buying a car with zero down payment

raise interest rates

Many car dealers "cooperate" with lending institutions to buy cars with zero down payment, which may actually raise interest rates when implementing interest rates. Although the down payment is gone, the interest rate has increased. For car buyers, the pressure of repayment after loan is very great, and the monthly payment may be unbearable for ordinary office workers.

Raise the price of cars

This is also a relatively common means. The car price with zero down payment is likely to be much higher than the full car price, which is also quite uneconomical. Therefore, before buying a car with a loan, the car buyer can clearly understand the car price of the model he wants to buy and go to several 4S shops, so it can't be said that it is a loan to buy a car, so the car price is more real.

Increase the handling fee

Buying a car with a zero down payment loan will be very risky for car dealers. Nobody wants to do anything risky. If you do, there must be a certain return. Therefore, some car dealers will increase the handling fee in order to prevent and control risks. Often, the handling fee charged for buying a car with a zero down payment loan is higher than that charged for ordinary car loans.