Zero percent finance on car loans is an interesting sales strategy that is being adopted by dealers and lenders nowadays. This would mean saving thousands of pounds which would have otherwise gone towards interest.

And so, buyers are getting attracted to this conception. However, this strategy has many drawbacks and is merely a method to attract customers.

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 fulfill.

Credit Score: Zero percent car finance deals do consider your credit report. The guidelines for credit are very severe. Bad credit history 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 at least one bad remark in his credit history.

Select Models: As the name itself reveals, these loans are applicable only on a few selected models of cars. The pitfall comes 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 providing zero percent car loans usually 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 the monthly payments will be higher owing to the shorter duration.

So please don’t take a zero percent car finance for the best deal available. Make it a point to check out other car financing options. Keep this in mind that informed buyers are always the best buyers.

Jayden Jethro has been in the car financing industry for over the last few decades. He provides the authentic details about cars on finance, car loans, car loan financing etc