--- title: Why low rates are better than 0% rates when it comes to car finance description: Why low rates are better than 0% rates when it comes to car finance image: http://www.1800approved.com.au/hubfs/blog/car_Zero_percent.jpg --- [![1800 Approved Finance Solutions](https://www.1800approved.com.au/hubfs/Logos/1800Approved_dark.png)](https://www.1800approved.com.au) ### [**1800 277 768](tel:1800277768) #### WELCOME TO # Our blogs Our aim is to supply you with the best information that you can be confident in your knowledge when you make an application with us. # [![logo-easter-d](https://www.1800approved.com.au/hs-fs/hubfs/Easter%20Campaign%202022/logo-easter-d.png?width=268&name=logo-easter-d.png)](https://consumer.zink.com.au/v1) ### Other Posts - [COVID-19 proof your business cash flow – with a little help from the government!](https://www.1800approved.com.au/blog/covid-19-proof-your-business-cash-flow) - [$150,000 Tax-write Off — Going, Going, Gone](https://www.1800approved.com.au/blog/tax-write-off-going-going-gone) - [Current combination of events means it's the best time to buy a car](https://www.1800approved.com.au/blog/the-current-combination-of-events-means-its-the-best-time-to-buy-a-car) - [How to protect your credit score during this COVID-19 pandemic](https://www.1800approved.com.au/blog/tips-on-how-to-manage-your-business-cash-flow-0) - [Tips on how to manage your business cash flow— How the stimulus package is geared to help.](https://www.1800approved.com.au/blog/tips-on-how-to-manage-your-business-cash-flow) - [**](https://www.facebook.com/sharer/sharer.php?u=https://www.1800approved.com.au/blog/0-rates-car-finance) - [**](https://twitter.com/share?url=https://www.1800approved.com.au/blog/0-rates-car-finance) - [**](https://plus.google.com/share?url=https://www.1800approved.com.au/blog/0-rates-car-finance) - [**](https://www.linkedin.com/cws/share?url=https://www.1800approved.com.au/blog/0-rates-car-finance) - [**](http://www.youtube.com/user/?url=https://www.1800approved.com.au/blog/0-rates-car-finance) ## Why low rates are better than 0% rates when it comes to car finance Posted by [Dmitry Kandov](https://www.1800approved.com.au/blog/author/dmitry-kandov) on 16 September, 2015 ![besiness_personal_car](http://www.1800approved.com.au/hubfs/blog/car_Zero_percent.jpg "besiness_personal_car")There’s a well-known saying that when something looks too good to be true, it usually is. A 0% car finance offer may seem mouth-wateringly tempting, but can leave you with a bitter aftertaste. Think about it. If the [Reserve Bank of Australia](http://www.rba.gov.au/chart-pack/interest-rates.html) has set interest rates above zero and the major banks have followed suit, it’s unlikely that any car finance provider can afford not to do the same – unless they are making the difference back. Long story short: if you get hooked in by a 0% interest car finance deal, you will usually find yourself on the wrong end of hidden fees and charges. Most 0% interest deals are offered by dealerships to attract you into the showroom. But don’t be fooled by the hype. You may not be paying the monthly interest, but they are, and they need to recoup it somehow. That’s why the difference is usually factored into the sales price of the car instead. It will be high and you’ll find there’s not much negotiation room on price. Then there’s the number and size of your loan repayments – the dealer need to meet monthly, quarterly and annual sales targets, so the arrangement will be made to suit them, not you. It doesn’t stop there. You’ll probably have to have the car serviced with the dealership, which is going to cost you more than if you shop around. Then there’s all the extras – the more you’re sold on the day, the more you’ll pay in total. How much difference has that 0% rate made to your car finance deal now?   **Are you looking for finance to help you purchase a new vehicle?** 1800Approved is one of Australia's fastest growing car and asset finance brokers. We specialise in car finance, equipment finance, plus insurance and warranty services, and have previously arranged deals from AU$10k to AU$5m. 1800Approved services clients accross [Australia](https://www.1800approved.com.au/car-loans/), working with over 30 independent lenders to find the best deal. We can also help with sourcing your new and used car warranty, and by sourcing vehicles and equipment through our Drive Wholesale arm. To learn more about how we can help you, call us today at 1800 277 768 [![1800Approved_dark](https://www.1800approved.com.au/hubfs/Logos/1800Approved_dark.png "1800Approved_dark")](https://www.1800approved.com.au/new) #### join our newsletter Keep up with the latest tips #### Financial Services #### Company #### Resources 2008-2026 © Ausloans Pty Ltd Australian Credit Licence # 383 999 - [**](https://twitter.com/1800Approved) - [**](https://www.youtube.com/user/1800approved) - [**](https://www.facebook.com/1800Approved) - [**](https://www.linkedin.com/company/1800approved-finance-solutions) - [**](https://plus.google.com/+1800approvedAu) ![](https://www.facebook.com/tr?id=2099318183729557&ev=PageView&noscript=1) ![](https://www.facebook.com/tr?id=759887617369365&ev=PageView&noscript=1) ![](https://www.facebook.com/tr?id=122106498438777&ev=PageView&noscript=1) ![](https://bat.bing.com/action/0?ti=5128956&Ver=2) [![ClickCease](https://monitor.clickcease.com/stats/stats.aspx)](https://www.clickcease.com) ```json { "@context" : "http://www.schema.org", "@type" : "FinancialService", "address" : { "@type" : "PostalAddress", "addressCountry" : "Australia", "addressLocality" : "Gold Coast", "addressRegion" : "Queensland", "postOfficeBoxNumber" : "4214", "postalCode" : "4214", "streetAddress" : "33 Ereton Dr. Arundel" }, "aggregateRating" : { "@type" : "aggregateRating", "ratingValue" : "4.6", "reviewCount" : "233" }, "areaServed" : "Queensland, New South Wales, Victoria, South Australia, Tasmania, Australian Capital Territory, Northern Territory, Western Australia, Sydney, Perth, Melbourne, Hobart, Darwin, Brisbane, Adelaide, Gold Coast, Canberra, Newcastle, Wollongong, Logan City, Townsville, Geelong, Sunshine Coast, Cairns and Albury/Wodonga", "award" : "Australian Broking Awards - Asset Finance Broker of the Year 2016", "brand" : { "@type" : "Organization", "name" : "1800Approved Finance Solutions" }, "contactPoint" : { "@type" : "ContactPoint", "contactType" : "customer service", "telephone" : "1800277768" }, "description" : "A leading motor vehicle finance broker in Australia since 2008. 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