Financing with dealers is being advertised more and more. Attractive lure offers are intended to motivate the consumer to buy at the pump.
So-called zero percent financing also addresses consumers who cannot afford the product at one go and still want to fulfill a wish. There are also numerous companies that advertise with a carefree loan and promise to take the product with them on site.
Financing with the dealer includes credit
But there is also a credit-like construct behind such forms of financing. Elvira Roth, who works at the Kamen consumer center, warns against trusting the handling of such financing offers.
“But whether it is a television, smartphone or coffee machine – supposedly cheap financing offers directly from the dealer are always the fulfillment of your wishes on credit! And no credit is given “.
Most of the time, attractive offers are associated with pitfalls
It is not uncommon for additional contracts to become due to the financing. For example, providers may charge insurance premiums or credit card fees. In order to avoid such traps, the following aspects should be considered when buying a product on credit:
- Pay attention to financing rates: Even if there are no additional fees, financing always involves a monthly charge. The fulfillment of your wishes should be weighed as attractive as taking products directly with you. The numerous offers mean that consumers can quickly fall into the debt trap. But the contractual terms can also hold surprises. The dealers usually cooperate with banks. The consumer ultimately concludes the form of financing with these. Consumers accept all obligations and rights for such a loan. Of particular note is the origin of the repayment rates. If these have to be drawn from an overdraft facility, considerable costs arise at this point.
- Note additional contracts: As already mentioned, retailers often try to bring additional contracts to the consumer. For example, the agreed financing can go hand in hand with residual debt insurance. Guarantee contracts are also often offered in this context. Such contracts naturally involve additional costs.
- Reading the fine print: It is also essential to read the contract terms in the fine print. This is the only way to avoid unwanted credit agreements such as a chargeable credit card in conjunction with the financing. Consumers can also see at this point if the favorable interest rates can only be viewed for a certain time.
If you pay attention to these points and critically examine the attractive financing offers, you will avoid a financial trap and, in the case of financing, you will know the consequences of any contracts.