Nowadays most of the lenders and dealers are adopting the interesting strategy on car loans which is known as the zero percent car finance. This simply means that a person can save his lot of money which would have otherwise spent on the rate of interest. That is why; the people who are interested in purchasing the car get attracted to this offer.
But this strategy has many faults and is just used by the dealers to attract the buyers and customers. It had been revealed that only one-third of the customers are qualified for the zero percent car finance because there are some conditions that need to be fulfilled by the customers. Some of the conditions are mentioned below: -
i. Credit score: – the credit reports of the customers are considered in the case of the zero percent finance deals. Not only this, the guidelines and other terms are also severe for the credit score. If a person is suffering from the bad credit history then he could be denied of the car finance. To get the zero percent car finance deal a person must have the credit score of above 700. This criteria of the bad credit score can makes a person ineligible of getting the loan because most of the people who are applying for the zero percent car finance deals have a bad remark on the history of the credit.
ii. Selected models: – another fact is that these zero percent car finance deals are only applicable for the few car models which are present with the dealers. Misery is even more added when customers came to know that the models on which this scheme is available are outdated and are not in demand because of many reasons like the bad performance, less efficiency and mileage. Sometimes the desired models of the car can be available with the dealerships but then the interior and colors of the models are not accepted by the customers.
iii. Short duration: – another tactic followed by the dealers is that they provide the zero percent car finance deals for a very shorter period of time. In most of the case the time of 36 months is given by the dealers where the buyers demand for 48-72 months. There is no interest charged for these finance deals but the monthly payment is very high as the time period is very short.
By: Ricky Hussey
Archive for December, 2009
0% Car Finance Deals – Take Care of the Traps
December 30th, 2009Computer Finance to Help You Become Technologically Updated
December 29th, 2009
It is the need of the hour that every person, working or non-working, businessman or salaried should have technological awareness. The world is moving at a very fast pace and to be successful, we have to move with it. Having a computer at your disposal is very important. If you lack the necessary funds, computer finance will help you buy a computer.
Computer finance will help the borrower to buy a computer according to your needs and requirements. The configuration that you want to buy, the type of processor, accessories like speakers, RAM, hard disk etc are all purchased according to your wish with help of computer finance.
Before applying for computer finance, the borrower should undertake a research so as to what are the expected expenses for his requirements. The estimated price of each requirement should be calculated and only then he should apply for the computer finance. Only after the approval of the computer finance he should approach a dealer of computers whom he trusts to charge a fair price.
The borrower can take up computer finance the secured or the unsecured way. Through the secured way, he can pledge the machine itself as collateral for the loans. This way, the borrower can avail a lower rate of interest on the loans. However if the borrower is not comfortable with the idea of pledging as asset as collateral, he can take up the unsecured computer finance. A slightly higher rate will be charged which can be lowered but the collateral free nature makes it very popular.
Bad credit borrowers can also take up computer finance in spite of the bad credit history. To cover the risk, a higher rate is charged but the higher rate can be lowered with the help of proper research and comparison of loan deals. By applying through the online mode, we open our gates to the numerous opportunities that offer us loans at lower rates.
Computer finance enables us to borrow money and buy a personal machine of our own. This certainly helps the borrower in being a success in all walks of life.
By: Tim Kelly
