The promise of 0% financing sounds very attractive at first: A car purchase, and without interest. However, such a type of financing can quickly become available Cost trap will. That is why tuningblog explains what you have to look out for with 0% financing in order to be protected from such a cost trap. Straight Car Dealer try to attract customers with the interest-free offers. However, it is only a real zero percent financing when taking out the loan no hidden interest, Costs or other fees for the customer. The problem here is that what sounds cheap at first is not always really cheap - hidden additional costs are the keyword here. Often times the costs are secretly recovered elsewhere pitched.
0% financing for the car
Beware of hidden costs with Zero percent financing! Even if the prime rate is low, you must always keep in mind that a bank is money does not give out of pure charity - the bank wants it to earn and lends the money can not be free. So if, for example, a car dealer asks the relevant credit institution to take out such a zero percent financing, it is very likely that this will be the case Costs on the dealer get. These don't necessarily have to be high, but still exist you. And it is precisely these costs that the dealer will later pay for in the form of a Surcharge pass on to the customer. So that means that zero percent financing is not really cheaper than that in the end conventional car loan, who has low interest rates.
For example, the costs can be reduced by a higher price of the vehicle to make noticable. In this case, the cost incurred for the dealer becomes simple added to the vehicle price. This is how you get a car loan without any interest, but ultimately you have it more than necessary paid for the car. Because of this, it is extremely important that you already have a Ahead with the comparison-based scenarios with regard to suppliers offers, various offers begin. Here you should pay particular attention to the prices of comparable Cars and the final price the corresponding types of Financing respect, think highly of.
High processing fees are not uncommon!
The surcharge can also be in the form of Handling fees of the dealer. You are closing two different contracts from: Den Loan agreement in the human body and facts about the Purchase contract. By the way, they conclude the loan agreement can not be with the dealership, but with the Banking. It Purchase contract however, you close with the car dealer from. And here the dealer can offer you certain services, for example settle upwhereby the dealer picks up the costs incurred for the zero percent financing - on your costs.
Don't forget your residual debt insurance!
There are those too Payment protection insurance. You usually also take out this when you take out zero percent financing. That insurance is usually relative expensive and doesn't even offer in all situations the protection you want. If this insurance is required, it is essential to obtain the insurance in advance Costs for this insurance will be calculated and on the cost of that Financing be pitched.
Separate credit account: With some banks it is the case that the processing of car loans and repayment via one separate account, which was set up especially for it, runs. For this account will of course Account management fees due and possibly even (default) interest will be charged if you do not terminate the loan on time or with a (or more) Payment in delay are. And that same interest rate can be different and even be higher than the interest rate on the overdraft facility.
Credit card: You should be especially careful if you are also entering into a contract for a Credit card as these usually have their own Credit line disposes. If you use this credit card now, you may get interest because: The zero percent financing only applies to the vehicle, but not to the new credit card.
Separate final installment: Before When you conclude the contract, you should definitely check whether the installments that accrue over the term are high enough to cover the loan in the end to be repaid completely. Often the loan is designed by the banks in such a way that you get a relatively high one at the end of the term Final installment have to pay - here it is the same as with the credit card: zero percent financing applies only for the term of the loanbut not for the final installment that may come your way. Maybe you have to pay the balance then continue financing what sure not interest-free is possible and to it more years takes. Unfortunately, the car will be in this period not younger.
Zero percent financing and the right of withdrawal!
Here it depends when You have completed the financing. If you do that did before March 21, 2016, the statutory right of withdrawal applies can not be . Here you may be able to revoke the sales contract that you concluded with the dealer, but not the one you concluded with the bank Loan agreement. All Financing that was concluded afterwards can be withdrawn within the usual deadline (two weeks) withdraw will. For example, when the rates are too high. If the Credit with the sales contract connected, can also of the Purchase contract be revoked.
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