0% Interest Rate Car Finance
Car buyers seeking finance may canvass a large number of options in their search to find the right loan. In that search, some may come across loan offers with zero, 0% or as little as a 1% interest rate. These types of loans are not offered through Easy Car Finance but we consider requiring explanation.
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Easy Tip: We provide car loan quotes sourced from across a large number of lenders. Our team are experts in the motor vehicle finance field and can easily explain the details of a finance contract. Feel free to contact us for a quote or to discuss your car finance options.
Zero Interest Rate Car Loans: Explainer
The adage about something looking too good to be true actually being too good to be true, may well explain 0% interest rate finance. Anyone considering such an offer may be well-advised to read the terms, conditions and fine print associated with the loan, seek independent financial advice and obtain a quote from us to compare the true costs involved.
These types of loans are legal, but widely considered in the lending sector as a sales or promotional tactic to attract customers. Often these offers may be advertised by motor dealers. With such a loan, the borrower is paying off the car purchase price only. No interest is being charged on the finance.
The first tip is to look closely at the finance amount – possibly the vehicle pricing, and compare with others. The vehicle price may be inflated to cover what would be the typical interest payable on finance for that amount.
Studying the Details, Terms and Conditions
As with any finance contract, buyers should always read the fine print. If they do not fully grasp the meaning and the details are not fully and satisfactorily explained, they should seek independent advice.
With 0% interest rate finance, one details to focus on is the details in the invoice for the vehicle. The purchase price may be inflated or the invoice may include additional, and above-market fees and charges. Such fees may include a finance establishment fee or a management fee for the finance which is priced and applied on a monthly basis. Essentially loading the purchase price with what may be interest payable on another loan.
These details can be checked by requested vehicle pricing from another seller to compare.
Another option is to request a quote from us on the cheaper vehicle pricing. Calculate out the full cost of the vehicle with finance and compare with the total outlay for the 0% interest rate option.
Check the Timeframe for the Zero Rate Offer
As 0% rate finance is often a promotional strategy, often the zero rate is also just for a promotional or introductory time. The zero rate may apply to the initial period of the loan – 6-12 months or even less. After the expiry of that introductory timeframe, the fine print may detail that another interest rate – usually much higher than market, will come into effect for the remainder of the repayment term.
The end result being that the buyer ends up paying far more in the overall total cost of the vehicle including finance than they may have with a competitive interest rate loan from another lender.
Frequently Asked Questions
Easy Car Finance
What is the best car finance in Australia?
The best finance for your car is one that works with your personal circumstances. If you have a few finance options, then combining them all into one facility may be the best choice. Buying an older car? low doc car finance could be ideal. When you're buying a newer car, then a secured business car finance could reduce your interest rates. At Easy Car Finance, our focus is on getting the right finance rates for you.
What is the typical interest rate on a car finance?
Interest rates can vary depending on many possibilities, such as having a good credit history or the total finance period. Are you after fixed interest rates, or do you prefer a variable interest rate? With secured car finance, you may be offered a lower interest rate. Ask for a free loan quote at Easy Car Finance, and we'll show you the current interest rates.
How do I get a car finance?
At Easy Car Finance getting a loan to buy a boat is easy. You can send through your details, and within one business day, one of our finance experts will contact you for more details about the type of car you're looking to buy. We'll use our contacts and send you their car finance offers, you choose the right one for you, and then we'll handle the rest of the work.
How do car finance work?
Getting a finance for your car will work the same way as any personal loan. Firstly, decide how much you'd like to borrow and the finance term. Then, send your details to Easy Car Finance, and we'll contact you in one business day to go over more details, and then we'll find you a selection of car finance to choose from. You pick which one is best, and we'll handle the rest. It's that easy!
Can you finance the purchase of a car?
At Easy Car Finance, we are experts in finding the right finance options suited for buying cars. If you're buying from a dealer or a private sale, we can find a car finance option that will work for you.
How long will most banks finance a car?
The amount of time a bank will take to approve your loan can depend on a few things, such as the loan amount and specific loan terms. At Easy Boat Loans, we make it easier by working with lenders who approve loans fast. After you send through a few details, we'll use our contacts to find a fast loan option for you.