0% Truck Financing
When buying a truck, you have several financial options on the table. You can pay cold, hard cash and walk away with your truck or utilise the various lending options available in today’s market.
Due to the high cost of buying a truck many people may opt to finance the truck. Among the popular lending options, 0% financing is purported to be the deal of the season, if you believe the dealership.
How Does The 0% Truck Financing Work?
Before we get into the juicy details of the 0% truck finance, also known as 0% interest, let’s define what it is:
0% truck finance is essentially a lending option where the lender gives you a loan to pay for your truck. However, unlike conventional loans, you pay no interest for the duration of the period of repayment.
Is It Really Possible to Get 0% Financing on New Trucks?
They do this through the price for the vehicle itself and not the loan. 0% finance deals are often for a particular vehicle model and price of the vehicle is not negotiable. The lender will recoup their lost interest charges by inflating the price of the truck. This trick is called “subvention finance“.
There are a number of limitations with 0% finance deals;
- The vehicles offered may be limited or restricted to particular models.
- The loan terms may also be restricted with 0% finance. As the buyer, you may be required to have a shorter loan term than that of a traditional loan and may require a large balloon payment which you may not be able to afford.
0% financing on new trucks may sound like a wonderful idea, but if you think about critically, you may be better off leaving it alone. Remember, you may pay higher a higher price for the truck than you would financing via a normal loan because in essence, no one gives gifts anymore.
Our advice? Do your research on the truck that you want to purchase and then negotiate with the dealer to get the lowest price they will offer. Tell them you are a “cash buyer”.
Find out what the total cost will be over the finance term and then compare this with an alternative finance provider based on the lower cash price you have negotiated with the dealer.
Often the total loan cost using a “normal” loan that charges interest will be lower then the dealer’s subvention finance package. Remember, keep the truck purchase and the financing arrangements separate and don’t fall for the 0% finance option!
We can help you to finance your truck and find the right loan for you. This will give you more negotiating power when you walk in the truck dealership!
Disclaimer
This newsletter does not necessarily reflect the opinion of the publisher or supplier. It is intended to provide general news and information only. While every care has been taken to ensure the accuracy of the information it contains, neither the publishers, supplier, authors nor their employees, can be held liable for any inaccuracies, errors or omission. Readers are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this newsletter as a substitute for professional advice.
Your full financial situation would need to be reviewed prior to acceptance of any offer or product
