What's Wrong with Buying a New Car on 0% Interest?

If you want to buy a car and you can get it with 0% interest and 0 percent down, what’s the problem. I got caught in this offer a while back, when I bought a mattress and the lady said zero down and 0 percent interest, you just have to pay on time and payoff by this date. I walked out with the mattress and a free pillow. But boy was I wrong about buying that thing. 💲Patreon Exclusive💲 https://www.patreon.com/tommybryson 😎Call Me😎: https://bit.ly/30IBr0i 😎Second Channel😎: https://bit.ly/3c4sVPS 👨🏽‍💻Financial Freedom Course👨🏽‍💻$100 OFF CODE: LONGTERM Link: https://longtermteam.teachable.com/p/financial-freedom-steps-from-nothing-to-freedom 1. How do they Win? - Remember businesses need to make money - So one does something like this without there being an upside for them right - So let's take a look at the benefits they get First: Moving Slow Selling vehicles and clearing out inventory - They select the models and trims - Since we have these vehicles that are taking up space and we are not selling them - Let's make this offer and make sure we make a good profit now - Entice the customer by saying zero interest Second: Higher Sticker Prices, expensive add-ons, and strict payments - It's like that bed I bought, what I didn’t know is that the interest was accumulating anyways - And that if I missed a single payment all the interest would be added in at once and the deal was done - When they make this offer to you, and since they want to make the money now - They are usually not going to be willing to negotiate on the price, heck they may even raise the price Example: Buying a car for 20k and paying 4.5% interest and the same car they may sell it to you for 24k but 0% - With the interest you pay $30 less - It just looks attractive until you do the math - I paid $2000 for that bed, I could spent $400 on gotten a much better deal on Amazon Third: you lose if you are not perfect your benefits and get charged late fees - You don’t use the terms of the loans - The company does - So usually they come with this loophole in it - Miss a payment, you lose the zero interest and you get charged fees and sometimes all the interest that you didn’t pay before - I remember Paypal had something like this going on a while back - Imagine the interest rate they are going to give you too 2. What do you gain - Get to walk out of the door with a car you can't afford to pay for in cash - And with a higher price tag - And also a loan waiting to explode The biggest damage they do - Is providing you with a way to buy something you can't afford - By definition that sounds stupid, if I couldn’t afford then how do I have it - The answer is leverage, you borrowed it, you don’t own it By the way, I should add this too: - A lot of these offers are made but very little people qualify - They need to have an extremely high credit score and even then the cons are the same - So may go, find out you don’t qualify but they have some other deal for you 3. So what is the solution - Purchase a car in cash ( you pay zero interest on those ) - Don’t have to worry about the value going down because you own it - So if you were going to spend $500, $700, or even $1,000 per month on that car or truck Buy a beater for now: a reliable Toyota or Honda that runs forever - Save that money per month - And in a year or three, buy the car you want * PRO TIP* INFORMATION IS EVERYTHING 💲Patreon Exclusive💲 https://www.patreon.com/tommybryson 👕Merch👕 https://teespring.com/stores/tommybryson ✅2 FREE AUDIOBOOKS✅ https://amzn.to/2Enayo8¬¬¬ 🎁ACORN FREE $5🎁 Link: https://acorns.com/invite/38EYSU ⚡FREE KINDLE UNLIMITED⚡ (traditional reading) Link: https://amzn.to/2VGbxt9 👨🏽‍💻DISCORD PRIVATE GROUP👨🏽‍💻 https://discord.gg/EcZEHpA My Camera Gear: https://www.amazon.com/shop/tommybryson ✔ Help Us Reach 600,000 Subscribers: https://goo.gl/0wvm6w 😎All My Social Media😎 Link: https://linktr.ee/tommybryson --- Disclosure & Educational Disclaimer: Some links in this video may be affiliate links, and I may earn a commission. Content is educational and accurate as of posting; offers may change. I’m an accountant but not your accountant; always consult your own accountant/CPA or financial advisor. No income or results are guaranteed.