Many companies offer low interest or 0% finance interest rates on new trucks, which at face value looks like a great deal. But is it?
The main manufacturers all offer these deals but be warned, you may well end up paying more for your new truck than if you had shopped around and (maybe even) financed your new wheels through Aussie Truck Loans.
Why Shouldn’t I Take Advantage Of A 0% Truck Loan?
If dealers aren’t charging interest on their finance deals, they need to make up the difference in other ways. There are a number of ways this can happen.
1.The Price
Firstly, consider the price of the truck. If you walk into the showroom and ask for the 0% finance deal, the price is often then not negotiable – you’re paying full retail. You can almost certainly negotiate a better price with the dealer if you’re not asking for the 0% finance option.
2. Trade In Value
If you are trading in your old truck, you’re likely to be offered a lower price, plus the structure of your finance is likely to be less flexible (term of the deal, balloon payment option etc).
What About “Guaranteed Price On Future Trade-In”?
Another option offered by some dealers is a guaranteed price for a future trade-in, against your next new truck. From a psychological (and sales) point of view, this is the same as locking you into buying your next vehicle from them as well – very clever!
Again the problem is that the cost of offering this guaranteed buyback price is generally an upfront loading to the cost of the truck. And often these deals come with restrictions that may preclude you from taking up the offer anyway when it comes time to upgrade.
Do Your Homework & Save $$
It’s important that you have done your homework on truck prices before you go into the dealership. You need to have a clear idea of the value of your current vehicle if trading it in, as well as the price you should be paying for your new truck. Half an hour researching values on a few of the online truck sales sites will pay dividends here.
Also shop around and get some truck finance quotes from a broker (like us) before going into the showroom. At least if you do decide to take the 0% finance option, you will have done so having taken all factors into account.
You can contact us on 1300 889 669 or even apply online today for a truck loan quote.