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Free Auto Loan

There is no such thing as a free auto loan because every auto loan will have to be paid back sooner or later.

Any claim that there is a free auto loan available is probably a lie or scam of some sort. The classic version of this scam is an individual to claim to be a loan broker who can get a person a free auto loan for a fee. Generally, all the broker does in this arrangement is to pocket the fee no auto loan is arranged for anybody in this scam.

Car buyers should always be leery when they see claims or advertisements about a free auto loan.  Generally, there is something rotten when such claims are made.

Interest Free Auto Loans

The closest thing to a free auto loan would be an interest free auto loan which would have no interest. Even an interest free auto loan would have to be paid back sooner or later.

No commercial lender will issue an interest free auto loan because interest is how lenders make their money. Since a lender can’t make money on an interest free auto loan it will not issue one.

Some car dealers may advertise interest free auto loans or free auto loans. These claims are actually misleading advertising because the car buyer will still have to make car payments.

 On these car purchases, the dealer or lender simply adds a flat amount of money to the car purchase instead of interest and passes that amount on to the buyer. Generally, a low interest loan is a better deal than these “free auto loans.”

Free Loan Quote

Another free deal offered by dealers is a free loan quote. The dealer gives car buyers a free quote on an auto loan. This advertising is also misleading because almost any loan quote at the dealer will be free to the buyer. The dealer is simply making a claim to lure buyers onto the car lot.

Almost every lender will give a borrower a free loan quote. Legitimate lenders make their money off the interest on the loans they issue. Most lenders are happy to make free loan quotes because it is a great way for them to drum up business.

Legitimate lenders will not charge any sort of fee in order to get a loan quote. Any lender that tries to charge a fee for a loan quote is probably some sort of scam.

Be Careful with Free Auto Loans

Always treat the words “free auto loan” with caution because there is no such thing. There is simply no way a lender can make money issuing a free auto loan.

The best way to save money on auto loans is to ignore all the claims and offers of free auto loans and instead look for real deals. Those who go looking for a free auto loan will probably get ripped off because they are looking for the impossible.

Those who seek out real deals such as low interest rates and good terms on loans will save money and avoid getting ripped off.