CAR FINANCING WITH NO INTEREST CAR LOAN WITHOUT INTEREST AUTO LOAN ON INTEREST FREE BASIS
A car loan without interest is defined as vehicle financing which provides cash borrowed by an individual in order to purchase a car and granted through a bank of a cars dealer on an interest free basis.
A car loan with no interest allows a driver to buy the desired four wheelers, and pay this vehicle off in equated monthly installments instead of having to pay the full price but paying only the principal without interest.
An auto loan is common in the current car financing market and is used as incentive to encourage car sales, many car brands compete with each other not only on the basis of sale price but also by being competitive for financing.
A car loan on an interest free basis must draw the attention as to the real costs of car purchase via financing, given that sometimes, a consumer may pay for a more expensive car, just because the financing is at zero rate.
In order to have an objective assessment of the zero rate when buying a car, it’s important to consider following options:
- Compare the prices of cars and their financing with different dealers.
- Compare the price of the car paid on a loan basis and the price paid on cash basis.
- Compare whether financing through a personal loan from a bank is not cheaper by bargaining on cash basis with the car dealer and obtaining a discount.