Have you ever heard the saying, If it sounds too good to be true, then it probably is.
What’s the catch?
When a motor vehicle manufacturer offers a great interest rate it usually comes at a price. And that price is their terms-not yours.
Often that means the deal isn’t so good for you after all.
Let me explain.
Suppose you see a great 1.9% percent interest rate on the car of your dreams. Should you rush in and buy? Mmm, Maybe or Maybe Not, but there should be a few questions you should ask first before you sign on the dotted line.
Q1- Is the offer on the exact car I want?
You may find the dealer has a special offer only on a special spec car that they want to move quickly. Maybe it’s a manual transmission (but you want the auto- or vice versa). Maybe it’s a run out model that could cost you thousands in depreciation when the new model is announced a short time later.
Is it the right model, is it the correct colour ?
Q2- Do I get a discount?
More than likely the answer is ‘NO’. The interest rate is usually only available if you pay the full manufacturer’s recommended price. “That’s no discount not even free window tinting”.
So you have to weigh the interest rate saving against the discount you don’t get.
Q3- Can I change the terms of the deal?
These ‘specials’ usually have restrictive and narrow terms. For example. The Deal may be limited to a 3 year term with no deposit allowed. So, If you want a four year term with a 10% deposit, then – “NO DEAL”
Just remember nothing is for free and someone has to pay and it’s usually you !
Be careful, do the figures, then check again to see if it’s still worthwhile. Usually if you can negotiate a discount for as little as $2,000 to $3,000 your payments can be a lot cheaper.
If “Zero % interest rates’ are confusing there’s a simple solution… CONTACT US for further information
* Benson Leasing advise that the example provided above is an example only and may not apply to your specific business purchase and we recommend you consult your tax agent for advise on your individual circumstance.
Please call us on 1300 795 058 or go to our website www.bensonleasing.com.au for all your car financing needs.