$11800 No Down Used Auto Loan in Lansing Michigan for Jaguar Vdp Lwb
$11800 No Down Used Auto Loan in Lansing Michigan for Jaguar Vdp Lwb – Colin O. — Is it the best deal. Zero percent car financing for automobiles has been around for years and works as a successful marketing campaign for American truck and car dealerships who want to stimulate New Car sales.
It is such a successful and powerful sales tool that other industries have copied it such as the furniture and credit card industries. Research shows that only a third of borrowers ….continued below —>
$11800 No Down Used Auto Loan in Lansing Michigan for Jaguar Vdp Lwb – Colin O – App Form
Continued from above… who apply for 0 percent car financing actually qualify and only 10 percent of those close according to the National Automobile Dealers Association [NADA]. This means that the person applying for 0 percent Financing must have Perfect Credit to qualify. Many of those who qualify for zero percent financing severely overpay for their new vehicle because they do not negotiate the price.
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Damaged credit applicants in RI, SC, SD, TN, TX, UT, VT, VI, VA, WA, WV, WI, WY. This applicant’s comment was, “I must say that it’s been a grueling and frustrating process trying to get approved or qualified.” – loan application is approved or pending.
No Down used Auto Loans as a Marketing Technique
As the above notes have indicated this approach to selling cars and other products is a very successful marketing technique. Who would not want to have a zero interest loan? But is the loan really zero interest? What do you have to do to qualify for a no down payment for a used auto loan?
There are really two questions here and for consumers planning to purchase a new or used auto, the answers are often intertwined. Not having to pay anything down on an auto loan means you do not have to have any cash up front. The entire loan is financed and your car that you are purchasing is being used as the collateral for the loan. In other words, if you do not pay, then the auto can be repossessed and fees will also be assigned. The car will be resold to recover the cost of the loan and any remaining debt will be collected from you using debt collectors.
While this sounds ominous, most people are aware of the requirements and plan to meet all of their payment obligations. If you have a great credit rating, then most people will not have any problem qualifying for a no down auto loan.
The second part of the question refers to the amount of interest you are paying. The auto dealer has negotiated with a bank to provide lending at no interest to the customer. They have also negotiated with the bank to pay the bank a fee for every loan that is brought to them. In other words this fee is really the interest you are paying hidden inside the deal for your used or new auto loan.
Negotiating A No Down Zero Interest Loan
This is where the fun part comes in if you like to negotiate. You need a little bit of information to help with the negotiation and then you can go to work on the auto dealer. The trick is to not get emotionally involved with the car you are buying. If the sales person detects that you really want the car, it is going to get much more difficult to negotiate any savings.
First of all find out what your bank will charge you for a similar loan. This is the cost of the interest on your loan. Subtract this amount and the result will be close to what the car is really worth if you were to pay cash for it. Next ask your dealer how much they will discount the cost of the car if you do pay cash for the car. You will be using the bank loan instead of the zero financing loan they are offering. If the amount is the same as what the real cost of the car you calculated, then you have further opportunities to negotiate.
The dealer would much prefer to do a cash deal and avoid all of the paperwork and approval process with a zero interest no down auto loan. If they are trying to make quotas for month end or for a sales cycle this might something else you can use to further negotiate some savings for yourself. Being to interested and to excited about the car communicates how much you really want the car and limits your overall ability to negotiate.