This is my first thread on Automotive India. I am looking for a new car, a hatch to be specific. I just wanted you advice on zero percent car loans that are available with some car dealers.
Are they actually zero percent or are there any hidden cost which in long run would not be that beneficial.Some time back I did saw very lucrative offer from VW for POLO but some reason could not go for it.
Also, are there any banks that offer zero percent car loans? I am aware of the general costs of such schemes like processing fee and forgoing of discounts but I am fine with it since I cannot take or give interest due to my religious beliefs hence looking for zero percent loans.
Many auto makers offer bank loan on zero percent interest on different car models. before going forward, we need to understand what is zero percent interest?
When you take out a loan, you are borrowing money to buy a car. Nobody give you money for their profit. You have to pay interest on that money. but in zero percent interest loan, you are not paying any interest to bank. Sometimes, zero percent loan gives you chances to pay the same amount as a normal buyer. Bank doesn’t provide such loans instead the automaker itself provide such loans.