Zero Percent Loans


Although we purchase many junk cars, we also sell many used, quality vehicles. They are very affordable for someone who isn’t looking for a new car. For those who are seeking a new car purchase, the holidays may be the best time to buy.

Who is offering 0%?

As interest rates rise and taxes for the average consumer will be higher starting in the 2018 tax year, automakers are looking for a way to push car sales during the holiday. So, at least this year, three automakers, General Motors, Ford and Nissan, will be offering five or six-year no-interest loans on closeout models.

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What are the terms?

Not all vehicles will be included in the list of those which will qualify for the no-interest deals. The total number is less than 4% of all new car purchases, the lowest number it’s been in eleven years. Due to the tariffs on steel, this isn’t a surprising situation.

Ford, for example, is offering the deal on the F-150.

GM is offering zero percent financing on the Chevy Silverado, the Equinox and Tahoe SUVs. They are also offering other models at zero percent financing for 36 months.

Why the difference?

Traditionally, the longer the loan, the more likely the buyer is to default on it. The downside of buying a new car is that it depreciates rapidly as soon as it rolls off the sales lot. An economic downturn, job loss, an accident, or other unforeseen circumstances can make a buyer unable to pay. Traditionally, the longer the loan, the bigger the likelihood that a buyer will default, so longer loans provide a higher risk for the car manufacturer.

Unless a buyer is in a position of extreme confidence, they will probably only qualify for the shorter duration loan. The irony that those who need the loan the most are those who are least likely to qualify is not lost on this writer.

Nor is a loan of any size easy for many to manage. We’ve talked before about putting aside the amount of a loan payment for some months until the absence of that discretionary income feels natural, but, as leaders in the junk car industry, we know that’s rarely the case.

The good news is that, by buying a used car, such as one of the models we offer, a person can keep plenty of cash in their pocket for other things. As attractive as zero percent financing might be, owning a car without needing to make monthly payments is also a desirable option for the average driver. There are also some other options available for the eager buyer.

If you are in the Phoenix Metro area and want a no-hassle cash offer on an old, wrecked, unwanted, salvage or burned car, SUV, van or truck, give us a call at I Buy Junk Cars 480-771-8290.