I understand that prices drop when demand drops but how do banks make money off a 0% interest loan?
In: Economics
Typically 0% (or otherwise low) APR financing have a caveat.
Usually you’ll see a really good deal for X amount of months, then it’ll jump back to a higher than normal rate for the remainder of the term.
The financiers that the lots work with are willing to take a short term loss for long term gain.
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