Chances are you will not even be offered 0% financing from an auto dealer. Plus, even if it is offered you can probably save more money by taking a rebate and financing the loan through your credit union. Depending upon the amount you finance, your payment could be substantially lower per month while saving you more money in the long run.
The truth is that most of these special interest rates are simply gimmicks to get you to go to the dealership, where you become subject to high pressure sales tactics. Don't fall for it. Most people will never qualify for the special rates. In some cases, the special rates only apply to certain vehicles, or certain financing amounts. They may not even have that vehicle available.
NCCC suggests that potential car buyers read Remar Sutton's book "Don't Get Taken Every Time." Inside you find a wealth of information about buying a vehicle, including things dealers will not tell you. Some of these items include hidden costs and costs you shouldn’t pay. Did you know that most car manufacturers already include the cost of the doc fee in the price of the car? That’s right. You’re paying extra money! Most dealers will also get a certain percentage of the MSRP price from the manufacturer, regardless of the final sales price.
Be careful about other language you encounter with car ads. Does it say "Qualified buyers?" How about "Not available in all areas?" Does it say "See dealer for details?" It's all to bait you in. You may even notice that the disclaimer is whispered at the end of the ad so you cannot hear it. All of these statements are warning signs that the hook is out there waiting for you to bite.
If you do manage to qualify for 0%, don't be rushed. Get the offer in writing FIRST and then go home to look things over. Consumers are often rished into signing the deal on the first day, which makes them highly susceptible to being ripped off. Does the offer show a different price for the car than what the sticker says? Dealers often try to raise the price of a car or add new fees after they agree on the price of the car. They then get you to quickly sign the paperwork. Once you sign that paperwork, the car is yours regardless. Don't fall for it. You may even be able to take that offer to another dealer, who might be able to beat the price by several hundred dollars. Actually, that might not be a bad idea. Keep taking an offer from dealer to dealer until you come to a good price. You can even tell the dealer a white lie: “So-and-So Dealership is going to sell me this EXACT car— same color, same exact options— for this much. Can you do better?” If they say they can’t, just leave. It’s not worth the hassle. We have felt favorably about www.edmunds.com for offering information about new and used car purchases. The site even offers consumers what is called a True Market Value or TMV. That value is available for any car— new, used or your trade— to help you understand what you SHOULD pay for your car and how much you SHOULD receive for yours based upon mileage, condition, location and consumer demand.
Whatever you do, don't buy the car the same day the deal is made. Don't sign any papers and always get any promises in writing, even if it is as simple as a free waxing or a complimentary oil change. At the bottom or on the back of the paperwork is a disclaimer that essentially says every promise they’ve orally made to you is null and void. Once the deal is made dealers often ‘forget’ about those free offers they made you. Later, when signing the paperwork, make sure the total amount to be financed is the same as the total amount on your offer. Always focus on the bottom line price and not the monthly payments. The payments can be changed with the touch of a button. Watch out for the hidden fees and if you don't get what you were promised, don't be afraid to not sign and walk out. If they want your business, they WILL give you what you want.
