Possible problems of zero down payment:
1. Raise interest rates
Many car dealers and lending institutions "cooperate" and buy cars with zero down payment. In fact, it is possible to raise interest rates when it is implemented. Although the down payment is gone, the interest rate has increased. In fact, a normal loan to buy a car requires at least 20% to 30% down payment. For car buyers, the pressure of repayment after loan is very great, and the monthly payment may be unbearable for ordinary office workers.
2. Increased handling fee
Some car dealers will increase the handling fee in order to prevent and control risks. Often the handling fee charged for zero down payment loans is higher than that for ordinary car loans. Nothing for nothing. 4S stores do give you preferential prices, but why can you still pick up the car with zero down payment? Don't be too excited to calculate the handling fee, and you will probably understand the tricks.
The annual interest rate of normal car loan is between 6% and 7%, but the service fee given to you by 4S shop is ridiculously high, which is 1-2 times the ordinary interest rate. At this time, do you still think that buying a car with zero down payment is a wonderful move? I'm afraid I'd rather pay interest normally than take advantage of this loophole.
Reminder: Before you decide on a car loan, you must calculate the total interest you need to pay. If the interest is reasonable, then accept it. If it is unreasonable, then buy a car in full, or try another 4S shop. This method is practical even if you are not sensitive to the loan interest rate and repayment method.
3. Raise the price of cars
This is also a common method. The car price with zero down payment is likely to be much higher than the full amount, which is quite uneconomical. In fact, the price of cars is relatively transparent. As long as you do more homework in advance, inquire about the car prices of several 4S stores, and know well before buying a car, you can well avoid these traps of zero down payment to drive up the car prices.
Do you want to refund the deposit?
Generally speaking, after paying the down payment, various taxes and insurance, you can directly pick up the car and leave. However, in some 4S stores, there is an unwritten rule that if you want to apply for a car loan, especially a car with zero down payment, you must pay a certain deposit. Otherwise, the car will not be answered. The amount of this deposit is generally in the range of several thousand dollars, not much to say, but not much to say. However, after repaying the loan, they may not repay the deposit under various excuses, which is also a very headache for many car buyers.
Million car purchase subsidy