ELI5-How do banks make money when they offer 0% financing on vehicles?
In: Economics
When it comes to car buying there are four areas where they will adjust things. The bank only needs to “win” in one of the four areas:
Price
Add-Ons
Trade in
Finance
If they are offering 0% interest then they are probably less likely to take much off of the sticker price, give you a good deal on your trade in or any free add-one.
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