WHEN NEW DEALERSHIPS OFFER 0% FINANCING

When new dealerships offer 0% financing, is it actually 0%? In order for them to sell you the car for 0% financing, they have to borrow the money from the banks and be charged interest. Dealerships are not going to lose money on a transaction so the cost of borrowing is actually buried into the price of your car. There’s no such thing as free lunch.

In addition, 0% financing will not apply to all cars. With 0%, your choice of vehicle options can be greatly limited. Usually the most popular vehicles and new models are not available with 0% financing. Be sure to research whether or not you can obtain 0% on your car of choice.

Unfortunately, not everyone qualifies for the 0%. It’s often reserved for buyers with the best credit. If you’ve noticed, when new dealerships offer 0%, there is “O.A.C.” after it. O.A.C. stands for “on approved credit”.

Next time you’re considering a new car, take a minute to think of the above points.

SHOULD YOU GET WARRANTY WITH YOUR AUTO LOAN?

When getting auto financing, whatever your term is, it is worthwhile to get the warranty. What are you going to do when you face car problems? And it’s month end, all the bills are due, you only budgeted for the expenses you expected and the car loan payment. Now it’s a double-edged sword – do you pay to get your car fixed but miss an auto loan payment which may trigger re-possession? Do you pay your auto loan payments but have a car that’s not working? You still have to consider to fix your car out-of-pocket, it may be a few thousands of dollars that you don’t have laying around.

Warranty’s usually range from $999 to $2800 when you get it at the dealership with your car, depending on the package you get but this is spread over the term of your auto loan so you don’t pay it at once. When it comes time to needing it, you’ll be so happy you got the warranty. Do not put yourself in a situation where you have to decide to fix your car or pay your auto loan.

Always think long-term!

10 CHEAPEST CARS FOR INSURANCE

The Least Expensive Top-Selling Cars To Insure

In order, the least expensive best-selling cars to insure look to be the:

Hyundai Accent
Volkswagen Jetta
Honda Accord
Ford Fusion
Hyundai Elantra
Mazda Mazda3
Honda Civic (see the difference between Sedan Vs Coupe insurance)
Chevrolet Cruze
Ford Focus
Toyota Corolla

What Goes Into Determining An Auto Insurance Rate?

A lot. Insurance companies will factor in where you live, how often you’ll drive (ie. commuting to and back from work, long drives to the states and back, etc) and insurance history. So even though the above has been deemed the cheapest cars for insurance, your own information will matter as well for a comprehensive insurance quote. But hey, at least you’re off to a good start if you go with one of the above cars when considering insurance premiums.

Car Loan Specialists