Are Car Loans at 0% Always as Good as They Seem?
Car Loans Explained:
Car loans at 0% interest have been incredibly popular for the last six months. At first glance, they seem to be a great choice -- and for many consumers they can be. But we’d like to alert you to some concerns we have about car loans at 0%. There are some things you really need to know...
Spending Habits Change
Car loans at 0% are sometimes not the best choice for certain consumers. One common pitfall is that many consumers let such a loan influence their spending habits. Let's say, for instance, a couple in the early thirties recently started a family and now have only one income.
They might allow the “good deal” of 0% to cloud their decision. Rather than getting a car for $15,000 like they had originally planned, they now decide to go for a $25,000 vehicle. In this case, the 0% car loan isn't really doing them any good.
Do You Really Need a Car Loan?
Do you really need a car at all, let alone a new car loan? First evaluate why you need a vehicle, and then decide if you should buy new or used.
Consider the following questions:
Do you need a reliable vehicle to get to work to earn an income?
Are there other ways to get to work such as a bus or train?
Weigh your options carefully before making a decision. There is not always one clear-cut answer that will apply to all consumers.
Window Shop First
Don’t forget to window shop first. Don’t feel obligated to buy the first day you go to the car dealership. Leave the moment you begin to experience high-pressure sales tactics. You have to be satisfied with your purchase, and car loans require careful thought, consideration, and planning -- even if those car loans are at 0%.