On the occasion of the show and its exceptional conditions, we also see the advertising related to car credit manufacturers with a 0% APR (we can not use the term “free credit”). The core business of manufacturers is to sell vehicles, so it makes sense that they have every interest in removing any brakes on the acquisition of your future car.
Special conditions to benefit from this more than advantageous rate?
Not necessarily and in this case these are good deals but sometimes they are coupled with conditions. Here is a non-exhaustive statement of the clauses and conditions (written in small size) cumulative or not that MesFinances.be has identified:
- The 0% APR is often presented coupled with a warranty extension or an option of a “pre-paid” maintenance package (4 or 5 years or x thousand miles). Under the law on coupled offers you do not have to subscribe to both products in one but from a marketing point of view the manufacturers have interest in putting the combination forward
- A deposit running around 30% of the purchase price will be required which can prevent the purchase of a car by a certain amount if you do not have reserves
- In addition to the down payment the amount of the last monthly payment may be several thousand euros
- Obligation to cover the car with Omnium insurance
- Relatively short repayment terms (36 months) to reduce the risk taken by the lender but result in significant monthly repayment amounts.
Another essential aspect that should not be overlooked
As we explain in our guide “Choosing your car loan”, is not to benefit from a significant discount. Indeed, if you mention your need for funding too quickly, it will remove the margin of negotiation of the purchase price and you may not benefit from the good level of reduction on the price of the car. Do not forget that the rates offered by banks at the show are often very interesting and not coupled with exceptions and other conditions, click here to compare them.
The manufacturers also offer more complex forms of leasing
The manufacturers also offer more complex forms of leasing / financial / operational but these formulas are mainly reserved for commercial vehicles and are very difficult to compare.
Finance yourself with full knowledge of the facts and do not hesitate to ask all the questions you want to sellers and credit agencies, but do not forget to compare financing solutions!