It’s hard not to notice dealer ads touting new cars with zero-interest financing. If you’re in the market, this can be a very attractive incentive. No interest over the term of a loan? What’s not to like?
The answer might be: a lot. Very low- and no-interest loans are offered by the financing arms of major automakers, whose goal is not to keep money in your pocket. According to Edmunds.com, the mega-site for all things car-sale-related, they are meant to get shoppers to visit particular dealerships, or direct them to specific, low-selling models – especially as the year winds down in late summer and dealers scramble to make space for new vehicles.