Getting a car loan is a long and dreaded process by experienced car buyers. Because they have gone through their horrific experiences with the finance departments, their experiences and tips may be worth looking at. In the end it is up to us whether we believe and accept it or not.

Does Zero Interest Rate Increase the Rate of a New Car?

If the car dealer is only a middleman for another finance company, it is obvious that he or she would not want to lose his commission. So what he has lost, he will obviously make up by raising the price of your car to manufacturer's suggested retail price. They can also add lots of fees or items that you may not need. If the zero interest loans are offered by the manufacturer, then you won't have any problems. It still doesn't mean that you can escape a greedy sales person. Because even though the manufacturer's give out Zero interest rate, the sales person may still try to squeeze in lots of fees. There is no longer anything free in this world.

Applying online is better:

Applying online is better because you won't have to deal with the pressure that the finance department gives. Instead you would be able to choose on your own what would be the best deal fro you, unless you have a relative who is a car dealer and pressures you to get a loan from him. You can also avoid the car mark-up scam by applying online. All you need to do is have a good credit report.

The Auto loan Markup Scam:

The car dealer will add points to your auto loan based on what they claim are your credit rating. So it is important to know your credit rating before going to a car dealer. The points will then be kicked back from the lender to the car dealer. This practice is done by the car dealership industry that cost thousand of dollars for the buyer and even adds up during the lifetime of your loan. This scam is able to cost car customers billions of dollars each year.

Is it easy to get a zero interest loan?

If you have a credit report of at least 680, zero interest loan is pretty easy to acquire. You can your credit score from Equifax. The negatives on your credit report will only qualify you for higher interest car loans.

Bottom line of trying to avoid all this scams happen to you is be prepared and have a set mind. Don't let the pressure of the car dealers get to you.