What’s the catch with zero per cent financing?

While the thought of a zero per cent car loan might be appealing, in reality, they are often just marketing tactics and come with a number of hidden costs.

If you are getting a low-interest loan like this, it’s likely you’ll be paying a higher price for the vehicle itself. Similarly, there won’t be much scope to improve the price or get any extras with the car.

There will also likely be some more details in the terms of the loan that you’ll need to pay attention to. The length of the loan will likely be far shorter, and there could be other higher costs such as loan establishment fees or application fees.

The deal might also come with a compulsory servicing arrangement with the dealer to maintain the vehicle’s warranty or an upsell to other services that might not be required.

It’s always worth speaking to a finance broker before you start your search for a car, so they can compare the best loan products for your needs. Once you’re confident, you can then go and find the best car for you without any strings attached.