Buy cars with 0% deposit
There are so many car dealers offering 0% deposit when buying a car, that we cannot miss explaining how do they do it, although, most people probably already know what's the catch. We will try and do it in the simplest way possible.
If you want to buy a brand new car and don't want to spend your savings, it's best if you opt for a bank loan. There are several reasons for why we point the banks and not the loan that dealers can offer you.
- The interest rates of banks are much lower than the ones of the car dealership;
- You probably already have a bank account, so there is much less paperwork to be done;
- If you get your loan from the bank, you are not bound to do comprehensive car insurance and therefore you can save some more money;
- The repayments term is up to 7 years with banks, where most dealers will want to get repaid within 2-5 years.
If you are buying a second-hand car, you might want to get a contract with a dealer. A lot of them could agree to very little or no interest at all depending on the cost of the car, the deposit and the term you are willing to set for the repayments. You will have to negotiate all that, so be prepared! Once again, depending on the car, some dealers would give you some limited warranty, even if the car is older than 7 years.
Act smart and remember to set your priorities right. Both dealers' and bank loan can be repaid in advanced (before the term has expired), without any penalties. Generally, most people would like to get rid of any debts they have, as everybody know the interest will be bigger if you take more time to pay it.
Here is what information the auto dealers and banks might ask for, prior to approving your loan request:
- Full Name
- Date and place of birth
- Identity card/passport
- Residential status (Rental agreement if you are renting a property)
- Employment status (Payslip or/and FS3 for the previous year(s).