We've all seen the 0% ads. While they are tempting, you should take a closer look at the fine print before going down that path. In order to actually qualify for this low rate, you must have perfect credit. That means no history of late payments, defaults or an excessive amount of outstanding credit. You may also be required to make a large down payment.
Watch For These Traps
- The Term. The loan term may be extremely low at 24 to 36 months. This results in significantly higher monthly payments. At Rivermark, you can choose a term up to 96 months.
- Default Rate. If you fail to make a payment on time for any reason, the interest rate could skyrocket. At Rivermark, you low rate is fixed over the term of the loan.
- Fees. Many times there are fees to obtain 0% financing and there are penalties for paying off the loan early. At Rivermark, there is no loan fee or prepayment penalty.
- Higher Cost. Since the manufacturer isn't making any money on interest, they must make up the difference by raising the sticker price. With 0% financing you may end up paying full MSRP sticker price or more. You may be able to negotiate a better price that's closer to dealer invoice if you first get approved to be a "cash buyer".