Zero down payment on your car loan?
Top 5 reasons why you should not do “0” down payment?
- Interest charged is higher
- If you want to re-sell later in the future
- High monthly installment
- Lower your chance of loan approval
- Higher the risk of blacklisted
The sum of these reasons are equal to = losing money!!!
Saving money for the down payment is more preferable than going with ‘0’ down payment. You can save more money on interest payment, the larger down payment you pay upfront. “Patience is the companion of wisdom”. Waiting a few months to accumulate for your down payment is actually a smart thing to do.
We offer our customers ‘0’ down-payment option but we do not encourage them to do so. And the fact that not everyone is eligible to make ‘0’ down-payment adds another reason to the long list of paying some down-payment. To be eligible to make ‘0’ down-payment, a customer has to show proper documentation of his/her monthly salary and savings account.
Most car dealers also offer this option but most of the time banks would reject the loan applicants. It is not the SA fault that this happens because this is totally up to the banks as risk averse banks would trim down on it potential customers who they deem financially unable to afford such loans.
We are smart, we are united and we are…..Malaysians!!!
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