Well, maybe there is. But certainly not in the world of car finance.

Here’s how it works

Car dealers do whatever they can to lure you into their showroom. And a 0% offer is often all it takes. But be careful.

Although you may not realise it, you will still be paying interest. But instead of spreading the money over a series of repayments, you’re paying it on other aspects of the sale. To compensate for the ‘lost interest’, car dealers inflate prices in other areas including:

• Higher upfront price: Your dealer is likely to be a lot less flexible on the price of the vehicle or trade‐in offer.
• Higher servicing costs: You may be contractually obliged to service your vehicle with that dealer for many months or years. And these service costs are often overpriced.
• Up‐selling additional services: You may be pressured into add‐ons like extended warranties to help dealers beef up their profits.

The Final Word

The key to getting a good deal on your next car is ‘homework’. And that’s why you should talk to your local MoneyQuest broker. We’ll help you make an informed choice and assess whether the 0% offer is right for you.