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0% Finance. If it sounds too good to be true, it normally is.

If you’ve been searching for a new set of wheels lately, you’ve probably come across the promise of greener pastures, a brighter future or something otherwise described as, the most amazing deal ever – “0% Vehicle Finance.”

Let’s have a closer look to see just how amazing the deal is…

So you’re out shopping for a new car. The price tag says $42,000. And right along side it, there’s a big sticker plastered across the front window that reads – “0% Finance Available – Just Ask!”

That sounds amazing, right?!

Borrowing $42,000 and paying it back over 4 years, without paying a single dollar in interest. If a loan normally had an interest rate of 5%p.a, you would end up saving about $4,400 in interest. That’s a great deal, right?!

Except… not everything is always as it seems.

When you take a closer look, you’ll often find these 0% vehicle finance deals are only available on certain types of vehicles.

Often the trade-in isn’t as generous and there’s no room to negotiate on the price of your new car.

You generally can’t negotiate on the finance terms either, meaning you’re stuck with the loan length offered and a final balloon payment that doesn’t really suit you.

It’s also worth mentioning that sometimes as part of these deals, you’re also restricted to having the vehicle serviced exclusively by the dealer – which could result in higher servicing costs.

Suddenly, that amazing 0% finance deal is not so amazing after all. You may end up paying that $4,400 afterall, but in ways that aren’t so transparent.

It always pays to do a bit more research, that’s all.


 

If you own a business and you’re thinking about purchasing a new vehicle, remember you have options when it comes to financing it.

You wouldn’t buy a vehicle without searching around for the best deal, so why would you just accept the first and only finance offer?

Talk to us if you want to explore your options. We’d be happy to give you a second opinion to ensure you don’t end up paying more than you have to.

 

Did you know MO’R Mortgage Options can help you arrange vehicle finance?  Find out more here.

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