Car manufacturers are known for their financing at 0 percent interest. This type of borrowing seems interesting, since you do not have to incur any costs for this. Is this indeed the case, or is it wise to adjust and perhaps take out a regular credit? Borrowing money costs money, even when there is ‘free financing’. We discuss the various costs that you must take into account in order to get a good idea of the car loan.
Lower other discounts
The moment that you can take out a financing at 0%, there is a good chance that there are also few opportunities for negotiation. There is a good chance that the car salesman will no longer justify your attempts to achieve a discount on the purchase price. Do you have a car to trade in and you take out a loan to finance the rest of the amount? Then make sure that the value of the car you are trading in is not underestimated, since that is a well-known method of making a good margin.
Credit opening and checking
In addition, keep in mind that there is a credit facility, regardless of the interest you pay. The moment you borrow a car at 0 percent per year, you no longer have the option to take out another loan. The CKP has the credit in the registers, making it difficult to take out a new loan with a bank. You must first pay off the car loan before you can take out a new loan. In spite of the costs of 0% per year, you can therefore be affected by this loan.
Liabilities with a loan
Finally, based on the loan, you are required to pay off the car within the specified term. Does the car get a total loss and are you not insured against it, or can you no longer pay for it after a while? In that case there is a case of default and there is a good chance that you will be confronted with default interest. In that regard, a car loan of 0 percent interest is by no means always complete without costs and additional potential problems, so weigh this carefully against the other options you have.