Zero% Financing On New Cars For Sale – Reality Or Myth?

If you are browsing new cars for sale for sometime, you must have heard about 0% financing. It sounds incredible. True. It's a relatively new concept. Also true. However, there are some conditions in place for you to qualify for a 0% financing. Those conditions are pretty inflexible.

The concept of the financing is pretty simple though. It goes like this: you can buy a car from the company by putting a down payment. The company provides you with a loan and makes the car the collateral. It's completely interest free. There is no APR (Annual Percentage Rate) to pay. BUT, there is a small catch – you will have to pay the loan transaction fee, generating fee and processing fee. Not only that, you are also supposed to pay late payment fees and other fees that are related to installment payment are also imposed.

You need to have a good credit score or rating to be eligible for a 0% financing. These days, the financing is offered by either the manufacturer even. So, depending on which manufacturer you are dealing with, the right credit rating could be in the range of 650 to 750. Keep in mind that more expensive the new cars for sale, greater the credit score requirement.

Other than your credit rating, you also have to present the proof of regular income. A steady job or a business are considered to be sources of regular income. The company that gives you the loan reserves the right to lien on the car until you repay the full price of the car. If it is not paid, the car will be taken from you because it is the collateral.

So, be careful before choosing a 0% financing on new cars for sale.

8 Tips To Buy Cars From An Online Seller

The Internet is a good place to buy cars. If you are looking to buy a new or used car online, you have a great variety to choose from. However, you have to be careful and pay attention to things like electronic transaction, and doorstep delivery. You also need pre-approved financing and down payment.

Here are some tips to buy cars online:

1. Start researching to find out what type of car you would like to have. Then, narrow your search down to a handful of options. It will take some time.
2. Look around the web. Visit different sites where you can get deals.
3. Have all your questions answered.
4. Take a good look at the car photos shown to you by the dealer. Ask the seller to provide you with more photos.
5. Make sure that the car you select, comes with a warranty and all the proper paperwork.
6. Make sure that you have a financing option to buy the car and that you have proof of financing.
7. Another very important thing is to check the Vin number. Those who buy cars from web-based sellers make it a point to run VIN or Vehicle Identification Number through a national database. This gives a clear picture of the cars' history.
8. Once you have liked a car, ask to see it in person. Take a test drive and see if the car is what it has been advertised as.

These are just some basic things that can make or break the deal. If you follow these tips carefully, it is less likely for you to be cheated.