Zero Percent Interest Car Loan Scam

Sometimes we come across ads by dealerships promising Zero Down, Zero Percent Financing and No Payments for six months on new car purchases and car dealers spend millions of dollars on this each year. At first this sounds like a good deal. However, you should know that this is simply a scam.  Approximately 10% of those that apply for zero percent interest car loans actually get approved. The reason is the law credit score. Eventually, when you get approved for the zero interest auto loan it turns out to be a very short term loan (24 to 36 months). Your monthly payments in this case will be really high. Car dealers offer a zero percent interest auto loan for select models only. So it turns out that most of the consumers won’t qualify for zero percent interest car loans, as they can’t afford the short term car loan with high monthly payments and the dealer won’t probably offer this option for the car you consider.