The truth about
0% finance

Is there really such thing as a ‘free lunch’?

Well, maybe there is. But certainly not in the world of car finance.

Here’s how it works

Car dealers do whatever they can to lure you into their showroom. And a 0% offer is often all it takes. But be careful.

Although you may not realise it, you will still be paying interest. But instead of spreading the money over a series of repayments, you’re paying it on other aspects of the sale. To compensate for the ‘lost interest’, car dealers inflate prices in other areas including:

  • Higher upfront price: Your dealer is likely to be a lot less flexible on the price of the vehicle or trade‐in offer.
  • Higher servicing costs: You may be contractually obliged to service your vehicle with that dealer for many months or years. And these service costs are often overpriced.
  • Up‐selling additional services: You may be pressured into add‐ons like extended warranties to help dealers beef up their profits.

The Final Word

The key to getting a good deal on your next car is ‘homework’. And that’s why you should talk to your local MoneyQuest broker. We’ll help you make an informed choice and assess whether the 0% offer is right for you.

Why choose MoneyQuest?

  • Handpicked team
  • Local knowledge
  • Long‐term approach
  • More loan options
  • Free service
  • Many specialities

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