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Are there any problems or tricks with the 0% loans (assuming you qualify)?

I was looking at hybrid CRVs at an auto broker who can get some, and he told me these loans were full of "gimmicks".

I dunno if he is just dissing them and cannot offer them. He does go thru credit unions but my CU rate would be north of 2%.
 

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Just a guess, but a 0 interest loan probably offers nothing for the sales team. More often than not, they get actual compensation for steering you to some lender that the dealer has entered a relationship with.

But to answer your first question..... these are generally manufacturer provided (or subsidized) simple interest loans. They may have a clause that says they can raise the interest rate if you are late on any payments, so you have to check for that. You need a very good credit rating in most cases to qualify.

Thing is... you need to read the actual loan contract documents to answer your question, because that will answer your specific question here. If a dealer will not show you the contract terms and conditions in advance, refuse the offer.
 

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Are there any problems or tricks with the 0% loans (assuming you qualify)?

I was looking at hybrid CRVs at an auto broker who can get some, and he told me these loans were full of "gimmicks".

I dunno if he is just dissing them and cannot offer them. He does go thru credit unions but my CU rate would be north of 2%.
why would you need a broker if hondas offering 0.9%
 

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Everything in Moderation
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Both our '06 CR-V and #1 daughter's '19 HR-V were purchased with those factory incentive loans. No issues!
 

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I wouldn't say gimmicks, just like anything they will try to make some money on extras, you just have to shop around. You might get 1% less through Honda on last year's model but end up paying the same amount in the end because GAP insurance is much cheaper through the CU. IMHO the broker is a gimmick when you could go directly to the credit union.
 

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I guess I don't understand this "broker" concept. Any hybrid would be new or nearly so, what do the dealers in your area have on offer?
A "broker" sounds like one more open palm.
 

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I went with Honda’s 1.9 rate for 72 months on our recent purchase but the dealer financial guy was able to get CU to match this rate. It doesn’t matter to me but knowing dealer do get incentive going with their local lenders. They asked if it’s okay with us to support local business, I went along with it.
 
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Man you guys are lucky. We're lucky if we get anything close to 7% interest in South Africa.
Certainly seems high to me, but you need to look at the whole picture. What do you pay for housing, food, fuel, insurance etc.?
I bought my CR-V the really old-fashioned way. I saved up and paid cash. :)
 

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Beww I did the same. Saved up, cashiers check from my CU, so I guess the finance charges were 5 dollars. All was great till the insurance bill came. 16yo son, really made an impact on the bill once we had three cars I the fleet
 

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Beww I did the same. Saved up, cashiers check from my CU, so I guess the finance charges were 5 dollars. All was great till the insurance bill came. 16yo son, really made an impact on the bill once we had three cars I the fleet
I don't have that insurance problem. My last ticket was in 1972 (speeding, in a Triumph Herald no less, not sure how I managed that).
I did expect my insurance to go up, as I was moving from a vehicle worth perhaps $2000 to one worth $30,000. I figured at least my collision and comprehensive would go up.
But they didn't. Total bill went down substantially. My agent said it was because of all the safety features in the car.
But a 16 year old would change things drastically.
 

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Beww I did the same. Saved up, cashiers check from my CU, so I guess the finance charges were 5 dollars. All was great till the insurance bill came. 16yo son, really made an impact on the bill once we had three cars I the fleet
My agent has me trained..always call him for an insurance quote before buying the car.
 

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My agent has me trained..always call him for an insurance quote before buying the car.
My issue is the as a two car family, the 16yo is not a primary driver on any of them, so had little effect on the rates. However as a three car family, we each are listed as a primary driver on one, so I really see the rate increase of a 16yo male driver...
 

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I did expect my insurance to go up, as I was moving from a vehicle worth perhaps $2000 to one worth $30,000. I figured at least my collision and comprehensive would go up.
But they didn't. Total bill went down substantially. My agent said it was because of all the safety features in the car.
I came from a 2018 Civic Si and I expected my insurance to be more considering the value of the CRV-H is more than the Civic but my insurance for the CRV is nearly half of what it was for my Civic. Cheapest full coverage insurance I've ever had, actually.
 

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Insurances are weird. Somehow, my 2021 hybrid cost more to insure than my 2019 x3 m40i or 2020 Laramie truck. Both which cost twice as much as the crv. Go figure...
 

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I guess I don't understand this "broker" concept. Any hybrid would be new or nearly so, what do the dealers in your area have on offer?
A "broker" sounds like one more open palm.
A friend (perhaps just an acquaintance) of mine swears by "his" broker. Says they are able to negotiate a better deal due to volume, and "connections". Yeah right, whatever!
 

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I came from a 2018 Civic Si and I expected my insurance to be more considering the value of the CRV-H is more than the Civic but my insurance for the CRV is nearly half of what it was for my Civic. Cheapest full coverage insurance I've ever had, actually.
What this demonstrates is that insurance companies have their actuarial tables set higher for Civic owners, than CRV owners. And in particular, the Si Civics I would fully expect carry an actuarial premium on their rate tables.... because the Si is deliberately built and tuned for the enthusiasts.

Actuarial tables are calculated based on a range of factors.. with actual collision and crash data rates and severity weighing heavily, as well as age and type of driver attracted to particular brands/models. Civics, tend to attract younger drivers, who are often more aggressive on the road when driving, so it does not surprise me that the CRV will have lower rates on average.
 

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My issue is the as a two car family, the 16yo is not a primary driver on any of them, so had little effect on the rates. However as a three car family, we each are listed as a primary driver on one, so I really see the rate increase of a 16yo male driver...
Yup, that will do it!
 

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What this demonstrates is that insurance companies have their actuarial tables set higher for Civic owners, than CRV owners. And in particular, the Si Civics I would fully expect carry an actuarial premium on their rate tables.... because the Si is deliberately built and tuned for the enthusiasts.

Actuarial tables are calculated based on a range of factors.. with actual collision and crash data rates and severity weighing heavily, as well as age and type of driver attracted to particular brands/models. Civics, tend to attract younger drivers, who are often more aggressive on the road when driving, so it does not surprise me that the CRV will have lower rates on average.
Oddly enough, the fact that it was an Si didn't change the premium over a lower trim Civic. That being said, Im sure statistically, the CRV would be the safer vehicle to insure so I guess that makes sense.
 

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Are there any problems or tricks with the 0% loans (assuming you qualify)?

I was looking at hybrid CRVs at an auto broker who can get some, and he told me these loans were full of "gimmicks".

I dunno if he is just dissing them and cannot offer them. He does go thru credit unions but my CU rate would be north of 2%.
Just a guess, but a 0 interest loan probably offers nothing for the sales team. More often than not, they get actual compensation for steering you to some lender that the dealer has entered a relationship with.


Thing is... you need to read the actual loan contract documents to answer your question, because that will answer your specific question here. If a dealer will not show you the contract terms and conditions in advance, refuse the offer.
I just purchased a 2021 CRV Hybrid on 1/14. 0% financing is a real deal through American Honda Motor CO. There was no hassle during the purchase process, and even though no down payment by me was required, I did put down 10%. Originally I was going to purchase it outright but the 0% financing convinced me to do otherwise, even though I dislike car payments. Importantly I got (from my perspective) a great deal on the price via Costco. Honestly this was probably the best buying car purchase experience I have ever had. To top it off, the CR-V Hybrid (Touring) is a sweet ride!
 
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