Graham Hill Reveals The 0% Finance Con

Tuesday, 16. August 2011

As the new registration approaches we are starting to see more deals being offered by the dealerships, supported by the manufacturers. So is it always best to look for 0% finance deals? As I’ve mentioned before much of the advice provided by the national and trade press suggests that you should maybe avoid the 0% deals and negotiate a better deal on the car and take standard rate finance, the net result could result in a big saving. It would also remove the need for a higher deposit, sometimes 50% of the price of the car on 0% finance, and a short term from 12 months to 24 months making monthly payments high.

It is not unusual for dealers to charge full retail price for cars on which they offer 0% finance and won’t entertain any form of negotiation suggesting that you can’t have a discount as well as the 0% finance. Well, as regular readers know, this isn’t the case.

Provided you can afford the deposit and are happy with the shorter finance term, if required, then you should negotiate a price as a cash buyer and get the price down as low as you can and/or have a few extras thrown in for good measure, full tank of fuel, carpet mats etc.

Get the quote in writing from the dealer then tell him you want the 0% finance. Legally they have to provide it as the law states that you should be no worse off when you take a deal from a dealer on 0% finance than you would be if you were a cash buyer.

If you have a problem then you should contact local trading standards who will put pressure on the dealer. However, look out for the subsidised interest rates as this avoids the law that applies to zero percent.

So if you are offered a car at 1% APR and they say that you can’t have a discount on the car because you have the low interest rate there is nothing you can do about it other than take your business elsewhere.

As always the so called experts in the press get it so wrong when providing advice to the readers. Have you been caught out? By Graham Hill