This Is Why You Shouldn’t Opt For A Dealer Car Loan

Dealer car loans appear to be the quickest and most convenient option, especially when you are all excited to drive your dream car out of the dealership. Here are some things that you need to consider before signing the dotted line.

Couple in a car - Dealer Car Loans

1. Beware of the Zero Percent Offer

If it is too good to be true, it’s probably not. The 0 percent loans usually have a catch. There’s either a higher rate of interest after the first few months or a balloon payment at the end of the loan term.

As the name suggests, the balloon payment can set you back by a substantial amount and results in an increased overall cost.

2. Higher Rate of Interest

Remember, the dealers are not in the sole business of providing loans. They are primarily selling vehicles. They won’t offer a car loan unless they are making a substantial profit on it.

They always add extra cost to the loan for the deal to be lucrative. So don’t expect them to offer you cheap loans.

3. Pressure Tactics

When you are at a dealership looking at the cars, you have already given them an edge to offer you a dealer loan. Don’t sign the documents just because its convenient or the salesperson is a sweet talker and appears friendly.

Do your due diligence and take your time.

Remember, its ok to say no 🙂

Do you have more questions regarding your car/vehicle loan, call us for an obligation free consultation on 1300 795 371 or click here to contact us. Always happy to help.