http://whalehookloans.com/2007/11/23/what-is-the-story-behind-0-auto-loans/ The encyclopedia of personal loans. Tue, 06 Jan 2009 22:30:10 +0000 http://wordpress.org/?v=2.6.2 http://whalehookloans.com/2007/11/23/what-is-the-story-behind-0-auto-loans/#comment-18 Andrew McCullagh Tue, 11 Dec 2007 02:15:07 +0000 http://whalehookloans.com/2007/11/23/what-is-the-story-behind-0-auto-loans/#comment-18 I do not think that you are required to put any money down to obtain 0%. It does help to have perfect credit and not everyone will be able to get approved. Remember the dealer never sets the 0% it is an incentive from the Auto Maker on slower selling cars or trucks or at the end of a model before a change. In the event the dealer offers 0% and the Auto Maker does not, what is happening is the dealer is buying down the rate (paying the interest up front on a loan making it appear like 0%) this is where the dealer may ask for a larger down payment. Quite simply anyone with average to perfect credit can buy with 0% down. There is an exception when you have large negative equity, and thats another story. Another way to look at this is to take the rebate if offered over the 0% if you plan on having the car for 3-4 years. Should you decide to keep the car for 5-10 years the 0% is a better offer. Usually every one will qualify for a rebate. This in essence off sets a higher rate you might have due to not having perfect credit. Please note that Credit Scoring is done by Trans Union, Equafax & Expierian. It is safe to say that a score over 630 or higher will put you in the buyers seat every time. Provided you have paid every one on time, never had a loan sent to a collection agency or defaulted on an auto loan in the past among other things. I do not think that you are required to put any money down to obtain 0%. It does help to have perfect credit and not everyone will be able to get approved. Remember the dealer never sets the 0% it is an incentive from the Auto Maker on slower selling cars or trucks or at the end of a model before a change. In the event the dealer offers 0% and the Auto Maker does not, what is happening is the dealer is buying down the rate (paying the interest up front on a loan making it appear like 0%) this is where the dealer may ask for a larger down payment. Quite simply anyone with average to perfect credit can buy with 0% down. There is an exception when you have large negative equity, and thats another story.
Another way to look at this is to take the rebate if offered over the 0% if you plan on having the car for 3-4 years. Should you decide to keep the car for 5-10 years the 0% is a better offer. Usually every one will qualify for a rebate. This in essence off sets a higher rate you might have due to not having perfect credit.
Please note that Credit Scoring is done by Trans Union, Equafax & Expierian. It is safe to say that a score over 630 or higher will put you in the buyers seat every time. Provided you have paid every one on time, never had a loan sent to a collection agency or defaulted on an auto loan in the past among other things.

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