topic Re: 0% interest loans? in General Credit Topics

0% interest loans?

UKTone — Sat, 13 Apr 2013 23:59:47 GMT

http://www.bankrate.com/finance/auto/0-car-loans.aspx How would you find these?

What are some 0% interest loans (mortgages, auto loans, personal loans, student loans, etc.)? The only ones I knew were federal student subsidized loans, which are based on financial need. Now I see there may be 0% interest auto loans. I wonder if there are others.

Re: 0% interest loans?

webhopper — Sun, 14 Apr 2013 14:42:10 GMT

@UKTone wrote:
http://www.bankrate.com/finance/auto/0-car-loans.aspx How would you find these?

What are some 0% interest loans (mortgages, auto loans, personal loans, student loans, etc.)? The only ones I knew were federal student subsidized loans, which are based on financial need. Now I see there may be 0% interest auto loans. I wonder if there are others.

These 0% loans are usually a promotion made by the auto manufacturer.. For example, a prime customer walks in and gets 0% on a new Chevy due to manufacturer rebates

They do these so that they can move out excess inventory, especially if people haven't been buying that model. You usually won't see it on every vehicle a manufacturer makes, but you'll see it on some of their least popular models.

Re: 0% interest loans?

gramps1968 — Sun, 14 Apr 2013 19:48:25 GMT

So the dealership must reimburse the loan people somehow, since they are obviously making no profit on a 0% loan?

Re: 0% interest loans?

laz98 — Sun, 14 Apr 2013 20:19:46 GMT

@UKTone wrote:
http://www.bankrate.com/finance/auto/0-car-loans.aspx How would you find these?

What are some 0% interest loans (mortgages, auto loans, personal loans, student loans, etc.)? The only ones I knew were federal student subsidized loans, which are based on financial need. Now I see there may be 0% interest auto loans. I wonder if there are others.

Unless this is a new thing, I have never heard of federal student loans having a 0% interest rate. You pay no interest on them whie you are in school, but that does not make them 0% loans. Once you are out, you will most definitely pay interest.

Re: 0% interest loans?

boomhower — Sun, 14 Apr 2013 20:43:29 GMT

@gramps1968 wrote:
So the dealership must reimburse the loan people somehow, since they are obviously making no profit on a 0% loan?

They do the loans themselves. All the major manufactorers have their own financing arm. Ford, Honda, BMW, etc. (I think GM sold theirs off during restructering but don't hold me to that)

Re: 0% interest loans?

gramps1968 — Sun, 14 Apr 2013 21:11:08 GMT

Just curious as to what kind of credit score one would need to qualify for a 0% loan?

Re: 0% interest loans?

UKTone — Sun, 14 Apr 2013 21:40:27 GMT

@gramps1968 probably over 700, but I would assume income would play at least a slightly bigger part in getting it.

And they are selling a car, in which they don't pay even half the amount to build the car. I also know that many dental/orthodontics (specifally) allow 0% for loans from 6-12 months, anything longer will likely have interest. I'm going to see if I can still get this Monday, since I didn't see it until I went in the hallway.

Re: 0% interest loans?

thom02099 — Tue, 16 Apr 2013 18:02:45 GMT

@gramps1968 wrote:
Just curious as to what kind of credit score one would need to qualify for a 0% loan?

I think it depends on the car/manufacturer as well as the dealer, but I've seen those ads and read the fine print stuff at the bottom of the page, and there's almost always a reference to "well qualified customers" and sometimes a score mentioned...I've seen 720/740 mentioned several times in such ads, so I think that would be a good ballpark score needed, something over 720 most likely.

Re: 0% interest loans?

thom02099 — Tue, 16 Apr 2013 18:05:36 GMT

@boomhower wrote:
@gramps1968 wrote:
So the dealership must reimburse the loan people somehow, since they are obviously making no profit on a 0% loan?
They do the loans themselves. All the major manufactorers have their own financing arm. Ford, Honda, BMW, etc. (I think GM sold theirs off during restructering but don't hold me to that)

Yup, GMAC was sold to Ally Financial.