- Posted January 31, 2013 by
This iReport is part of an assignment:
Zero Percent Car Loans Lure People with Guaranteed 0% Financing Cars
What do zero percent car loans generally mean? Does anyone have any idea about it? People are generally influenced by companies who offer cars with 0 financing and get into trouble later when it comes to paying the debts. This concept has become very successful and has been repeated into other verticals as well based on its success in the auto industry.
According the few researches done, people actually over pay for their cars assuming that they have got the best deal i.e. zero percent car loans. Following are few of the reason for the same: If you have gone for cars for 0 financing, then you should definitely keep in mind that you will be paying more as there will be shorter loan terms and so the amount to be paid will go higher. As a result of which, many of the loans will be become car loans with poor credit. Also such offers are generally made on the inventories whose selling is lesser compared to others. Also such car loan offers are only made on newer cars and not on used ones which makes it compulsory to buy a new car rather than going for an old one. Zero interest financing for cars might help those with tough credit conditions.
For companies who come with such car loans no credit check is done which can again lead into a bad credit history. A proper credit check needs to be done prior to giving loans to avoid such situations. People having car loans with poor credit history should look for refinancing option and should go for auto loan refinance online. This can help him in changing his poor credit history into a car loan with a good credit history.
0% car loans financing is not a good option. It is rather feasible to go for low rate car finance then to go for cars with financing options. One of the ways to get finance for new cars is: Online credit applications – a very good and safe method for getting car loans for new cars. This method is very much recommended for car buyers with all sorts of credit histories. It can certainly help people with poor credit ratings to secure the loans that they would require. Buyers with good credit history would certainly be benefited from it.
Many a times for such car loans no credit check is done as they would recover most of the amount in the initial few months only because of the higher amount they would be charging. They don’t care much about people and just think about their profits.