Auto Loans Site Addresses Zero-Interest Dealership Loans

June 10, 2011 - PRLog -- AutoLoans.com, one of the largest sites for online auto financing quotes, has recruited financial guru Rich Zurrman to pen weekly blogs for the site. The series of articles will focus on common missteps by car loan borrowers, such as falling into the zero-interest-rate auto financing trap.

“Auto Loans is honored to have Mr. Zurrman authoring these blogs over the coming weeks. We’ve asked him to concentrate on frequent mistakes borrowers make given the current lending climate and auto market. One of the biggest blunders we see our visitors making is falling for the zero-interest promise at the dealership. As Mr. Zurrman’s latest blog points out, zero-interest dealership loans are usually not all they’re cracked up to be,” explained Mick Ronson, spokesman for AutoLoans.com.

In this week’s blog, Zurrman points out that dealerships do not extend offers that end up costing them money—they always make up for the loss somehow. With zero-interest-rate auto loans, Zurrman says, dealers frequently inflate the price of the vehicle in order to make up for the money they would’ve made on interest charges.

“While a zero-interest-loan may seem like an irresistible deal, borrowers are almost always better off securing a loan from an independent financing source, like the lenders who participate in our network. The loan will likely have a modest interest rate, and the consumer is far more likely to get a better deal on the price of the vehicle by paying in cash from the borrowed funds,” said Mr. Ronson.

Auto Loans reports that Zurrman’s upcoming blogs will address topics like how to avoid defaulting on a car loan, the logistics and expediency of refinancing, and the growing allure of subprime car loans.

For more information, visit http://www.autoloans.com or call 800-609-1716.