What does two-year interest-free car purchase mean?
1 Answers
Two-year interest-free car loan means there is no loan interest for two years, only the principal needs to be repaid. Car dealers offering zero down payment and zero interest rate car purchases are not free lunches but a form of promotion. In fact, this move by car dealers is not much different from reducing the price of the car. More information about car loans is as follows: 1. Introduction: A car loan refers to a loan issued by a lender to a borrower applying to purchase a car. Auto consumer loans are a new method where banks provide loans to buyers purchasing cars from their authorized dealers. 2. Pros and cons of two-year interest-free: When buying a car at a dealership, it may seem like you save on two years of loan interest, but consumers cannot enjoy price discounts on the car model, nor can they receive free accessories such as steering wheel covers, seat cushions, parking sensors, or sunshade films. Additionally, consumers cannot purchase insurance policies like car damage insurance, theft insurance, commercial third-party liability insurance, compulsory traffic insurance, or no-deductible insurance on their own when financing a car; they must purchase them through the car dealer. In reality, while consumers benefit from the zero-interest rate, other aspects of the deal compensate for the dealer's interest losses.
