The moment you come across an offer that allows you to get something for nothing- example 0% truck loans- it instantly raises a red flag!

You can’t help but wonder- what’s the catch? How is it possible to procure a truck loan and pay nothing in return for it? Well, a lot of auto finance brokers look to extend this offer, which means that it is possible!

0% Interest Rates:- It Is Too Good To Be True…!

A lot of people go for such auto loans without knowing about the hidden dangers behind them. So, if your gut tells you that this could be a lifetime deal for you, then stop for a moment and think.

It may appear that 0% interest loans may not mean anything, but that is very rarely the case.

  • 0% Interest Rates Don’t Allow You Scope Of Negotiation.

In 0% transactions, those trucks sold are often treated as ‘let go models’ at the recommended retail price (RRP) or list price.

This implies that you will face difficulties like- improving the truck value with extras for no extra costs or finding out your finance arrangement, which may help you save money in the long haul.

  • Be Careful Of Balloon Payments- (Residual Value).

Another attraction of 0% interest truck loans is because the monthly repayments are so low in comparison to others. However, they also hide a key factor known as balloon payment (which is also known as residual value) that will hit at the end of the truck loan. And that could sum up to approximately 30% of the truck’s value.

More bad news is that if you are not able to pay up or refinance the balloon payment, then the truck becomes liable for repossession.

  • Fees, Hidden Charges…& More Fees.

Unless the 0% interest loan is somewhat a comparison rate- (an interest rate which includes all fees and charges) they are likely to fork out more veiled charges and expenses. Those include like early payment fees, account keeping fees and more.

What’s more, the lenders and financiers are upfront due to the strict accreditation practices, but the dealers offering 0% interest truck loans might not be.

  • Getting Older Trucks Without Possibility Of Any Customisation.

Although it may sound like a contradiction, dealers who tend to offer 0% truck loans look to push out their older truck models. This means that the truck dealer offering 0% interest will get old trucks that they cannot customise as per their requirements.

That surely is one big deal breaker and something which you ought to avoid when applying for a 0% interest truck loan.

Always Do Thorough Research On Your Truck Loan Before Finalising.

0% interest truck loans are usually more trouble than they’re worth. So, before finalising any deal with an auto finance broker in Brisbane, be sure to use a loan calculator to find out the difference in low negotiated loans.

You can also speak directly to one quality and reputed broker specialising in a wide range of truck loans in Brisbane. They will be happy to help you out.

Author's Bio: 

The author is a finance broker in Brisbane for years and offers a wide range of truck loans in Brisbane to different clients.