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.

Answer provided by
Eric Schad
Answered on Jul 01, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“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.”

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