The 0% Car Finance Myth

If you’re in the market for a new car, you’d have to be hiding under a rock to not know about the low-rate finance deals offered on vehicles.

These ‘deals’ are plastered everywhere – online, in the paper, on TV and on billboards around towns and cities.

And, let’s face it, who could resist special low interest finance offers on new vehicles at 0% or 2%, 7% or by making a 30% down payment to secure the vehicle?

These types of offers are cleverly designed to make you believe you’re getting a good deal. The only problem is, they are usually not the great deals they first appear to be. They are designed to lure you into the dealership where you will be introduced to seemingly too-good-to-say-no-to deals to get you signing on the bottom line. A lot of the time, these kinds of finance deals come with  plenty of terms and conditions.

Our advice is simple. DON’T BELIEVE THE HYPE! Always look further into the numbers, the overall cost of ownership and also for hidden costs. Just remember that low interest rates need to be subsidised by someone, and that generally is the manufacturer, and also “you” by paying more for the vehicle than what you needed to.

This came to light for us recently when we queried a deal on offer to one of our clients. The client was offered 3% to do a deal “TODAY”, but once they read the fine print, it surfaced that they would be required to fork out close to full RRP to get the low interest rate. This meant spending over $6,000 more than what they would have paid for the very same vehicle under a lease arrangement.

Likewise, another client was presented an incredibly low lease rate on a vehicle which left us once again scratching our heads. When the fine print came to the fore, it was revealed that he would be limited to just 10,000km per year as a mileage allowance, yet in his job he was doing an average of 30,000km a year. But there was another catch – he would have to return the vehicle back to the manufacturer and replace it with a similar vehicle to protect himself from some conditions in the fine print.

At Driveline, we do the maths and offer balanced advice on which finance structures and deals would work best for you.

All vehicle finance deals are not created equal. Having the right finance or leasing structure in place will save you money in the long run and give you more options down the track.


A simple guide to vehicle leasing

Get your free copy of Driveline's simple guide to vehicle leasing.


This article was originally published on Driveline Fleet's blog and has been republished with permission from the owner.

Sort by
  • New Member says
    I am definitely enjoying your website. You definitely have some great insight and great stories. The Best Bulk SMS Service Provider in Sharjah UAE
  • New Member says
    I am definitely enjoying your website. You definitely have some great insight and great stories. Bulk SMS provider in UAE
  • Seo Expret says
    Great survey, I'm sure you're getting a great response. aero auto glass
  • nicksas says
    I admire this article for the well-researched content and excellent wording. I got so involved in this material that I couldn’t stop reading. I am impressed with your work and skill. Thank you so much. Azar Gems Generators
  • nicksas says
    Cool stuff you have got and you keep update all of us. SEO backlinks
  • nicksas says
    This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free.
  • nicksas says
    I have read all the comments and suggestions posted by the visitors for this article are very fine,We will wait for your next article so only.Thanks! togel
  • nicksas says
    Nice post mate, keep up the great work, just shared this with my friendz seo service
  • nicksas says
    Awesome blog. I enjoyed reading your articles. This is truly a great read for me. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work! Florida payday loans online
  • nicksas says
    This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here keep up the good work Royal CBD

Post your comment

Want to have your say?

It's quick, easy and 100% free.


Latest discussions

Endorsed Events

  • SpringBreakFIJI SpringBreakFIJI

    Secure your motivation for the year by locking in SpringBreak in Fiji, your own exclusive island

  • The Fijian Cup The Fijian Cup

    The Pacific Touch Rugby festival (Fijian Cup and Kava Cup) is underway on November 2, 2017 and with support from Touch Fiji and...

  • Rock Island VANUATU Rock Island VANUATU

    From a fully chartered resort, an incredible line up of Kiwi musicians and Rock legends flown in you'll find nothing close to...

  • Summit FIJI Summit FIJI

    Summit FIJI aims to revolutionise how businesses can approach conferences, corporate retreats and team building weekends