---
title: Zero per cent finance can be more expensive
description: Zero per cent finance can be more expensive
---

[Lifestyle Articles & Finance Tips | 1800Approved - Finance & Loans ](https://www.1800approved.com.au/blog)

# [Zero per cent finance can be more expensive](https://www.1800approved.com.au/blog/zero-per-cent-finance-can-be-more-expensive)

 Written by [Ken Edwards](https://www.1800approved.com.au/blog/author/ken-edwards) | 5 April, 2017

## Low-interest-rate deals are starting to reappear as car dealerships attempt to disguise price rises.

It can be confusing for car buyers trying to determine if it's a good deal or not.

In most cases, it can be better to organise pre-approval for a set finance amount to haggle a sharp price and [arrange your own finance](https://www.1800approved.com.au/car-loans/) outside the dealership. Usually, the deals in the showroom do not add up.

We did some number crunching on a recent deal.

 

At least one leading brand recently offerred Zero per cent finance on quite a high retail price of $24,990 drive-away for a small car that has had a $19,990 drive-away price tag

At Zero per cent finance over five years the $24,990 price would cost $417 per month, presuming no hidden charges or establishment fees.

> What happens if you buy the car at $19,990 drive-away and arrange your own finance?

 

If you have a good credit history, you may be able to wrangle a rate of 8 per cent or better.

According to [online calculators](https://www.1800approved.com.au/calculator-new), that works out to be $405 per month or less over five years, paying $4329 in interest, bringing the total cost of the car to just $24,319.

It always pays to get more than one quote.

Make sure you find out the total interest and total amount you will repay over the life of the loan.

----

1800Approved is an award winning [finance broker](https://www.1800approved.com.au/), Australia's Broker of the Year for 2016 !  We have helped tens of thousands own their dream car, boat, jetski or caravan. Let us help you find the [best car finance rate in Australia](https://www.1800approved.com.au/car-loans/) today. Call us at 1800 277 768. No obligation.

 

 

[View full post](https://www.1800approved.com.au/blog/zero-per-cent-finance-can-be-more-expensive)

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