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Do car dealers raise the price of the vehicle when they offer 0% financing?
Do car dealers raise the price of the vehicle when they offer 0% financing? I've heard that 0% financing is great for buyers. However, I've also heard that dealers raise the price of the vehicle to offset the loss in income.
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Car dealers are legally required to keep the vehicle at its MSRP or lower. Therefore, they can’t legally raise the price of a
new car
above that.What really happens is that dealers are less likely to negotiate the price with you, and some other monetary incentives for the buyer might be taken off the table.
Therefore, the price may look higher at first glance, but it’s not.”
View full answer
- Gregory R.
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