Zero Percent Auto Financing. Too Good to Be True?

We’ve all heard the saying  ” If something seems to good to be true, it probably is”. However, we should always research something before discounting it as not legitimate. No doubt, many people believed that Edison was crazy in his relentless pursuit of his inventions. His critics most certainly thought his ideas were “Too good to be true”, they simply weren’t possible.   What about radio? How could people’s voices magically fly through the atmosphere? I’m quite sure many people thought these things were too good to be true.  The point is, we should always investigate the facts for ourselves before resolving that something is too good to be true.

When it comes to many topics, we often only hear half-truths. The world of finance is no exception. One such topic that deserves investigation is that of the infamous 0% financing that many of the car manufacturing finance companies offer.  Most all auto manufactures have a finance division. It’s a fact that many of the financing companies owned by the car manufactures are more profitable than the car manufacturer themselves.   One such company is General Motors. For years their finance division was immensely profitable in comparison to General Motors. GM was famous for offering their 0% financing offers on their new cars. This begs the question, how could an auto finance company offering zero percent loans still make a sizable profit?

Listen David break down the math behind the “Zero Percent” loans. Too good to be true? Or a great deal?

You can also watch the video below. Some people are visual learners and may prefer to watch David break down the math behind the zero percent offers.

zero precent

 Learn more: Get David’s book Whose Future Are You Financing? To learn the most efficient way to purchase your next car using your personal monetary system.