I mean, the price of the product is the same, I’m taking a loan for the duration of the credit but paying no interest?
What’s the catch?
I can keep my money making a bit of interest instead of giving it right away and without increasing the price of what I was already planning to buy. When or why wouldn’t I choose 0% credits?
Often car companies offer a rebate or the low rate. If you do the math the rebate is often for more than the difference in interest payments between the low and normal rate.
Absolutely, it is essential to always run the numbers. I was once offered a sizable rebate if I accepted a non-0% car loan, but no rebate if I paid cash or had my own financing. Since their loan had no early-repayment penalty – and I demanded this in writing – I accepted their loan and paid it off upon the first statement.
My suspicion is that that sort of offer was to boost the commissions earned by the loan brokers, rather than to move cars. Or maybe both. Who knows.