Buying a car

[Churchill]

Nice site, good job. I am interested in upgrading my car, and am looking at my first 0km. I have seen a lot of adverts regarding paying for the car in 'cuotas' and then being involved in some sort of draw (sorteo). Anyone done this before? I am tempted because the loans I have been offered at the bank involce very high interests. My current car is worth about 25,000 pesos and I have about 10,000 more in the piggy bank. I need though another 20,000 or so to buy something fairly nice. Thanks.

 

[steveinbsas]

Do you have permanent residency and did the banks indicate if it was necessary to have it to obtain financing?.

 

[Churchill]

I am a resident which means they will lend to me. The 0% finance and the paying for the car in 'cuotas' sounds too good to be true, meaning it probably is. I just don't know the catch!! Although, the part about the draw made me very reluctant to go much further. My spanish is not great so any help you guys and gals can give is much appreciated.

 

[steveinbsas]

Could the "draw" be a lottery for the zero percent interest rate?

 

[HowardinBA]

never heard of a "draw" to be honest.I boughtmy 0km car last september and sold/chopped my old one.same make,model,but 4 years old,I paid 14 thousand pesos more,so it doesn,t lose that much value in Argentina....

 

[Maikito]

Yes I know about the draw....it depends how you choose to pay for the car. You can pay the large downpayment and you can take the car in no time or you can pay the downpayment on a monthly basis. If you choose to pay on a monthly basis, you will get the car after payment # 12 (it all depends, its just an exaple) or you may also get the car prior to payment # 12 if you are selected in a monthly draw.

 

[davonz]

Just out of interest home much in the interest rate on a loan to buy a car ?

I hear mortgage rates are around 18% ?

There was a promotion last year, and i think it was 0% finance with a big deposit, but that had something to do with the crisis and trying to stop car sales decreasing further and production drops at local car plants, but i dont know if that is still going.

 

[French jurist]

Maikito is right, that's how it works.

The plan "0 kilometro" was launched last year by the government (I think it still works but I'm not sure).
Details are here http://www.argentina.ar/_es/economia-y-negocios/C1635-plan-de-autos-0-km.php


Now, there have been many changes since it was first introduced : initially was for people who did not own a car during the past 7 years, then this was dropped (for everybody therefore).

I think it's really a 0% interest rate (but there are like 4 or 5 % for life insurance, etc...), but maybe does it apply only to basic models (you need to check).

You need to check too if the loan is indexed upon the dollar because of 2011 elections (if the peso is devaluated, your purchase could become costly...).

If there are no dangers like those, it's an excellent opportunity because of inflation, of course.

 

[gouchobob]

I am a resident which means they will lend to me. The 0% finance and the paying for the car in 'cuotas' sounds too good to be true, meaning it probably is. I just don't know the catch!! Although, the part about the draw made me very reluctant to go much further. My spanish is not great so any help you guys and gals can give is much appreciated.

If it's zero percent loan then the amount they charge for the car is likely raised to compensate, I doubt there are any free rides.

 

[mini]

I think it's really a 0% interest rate (but there are like 4 or 5 % for life insurance, etc...), but maybe does it apply only to basic models (you need to check).

Why would that happen? They couldn't raise the price on you after the fact? I don't understand this.

If it's zero percent loan then the amount they charge for the car is likely raised to compensate, I doubt there are any free rides.

Car here already are much higher. I imagine the deal will get some sort of gov't subsidy, tax break or something.