Zero Down Payment Car Loans: The Hidden Costs You Must Know

• Zero down payment schemes finance the entire car cost, requiring no initial payment from the buyer.
• Benefits include preserving savings, immediate car delivery, and maintaining financial liquidity.
• Beware of hidden costs: higher interest rates (0.5-2% more), larger monthly EMIs, and additional processing fees or taxes.
• Key tips: clarify if the loan covers ex-showroom or on-road price, check fixed/floating interest, understand foreclosure charges, and leverage a good CIBIL score.
• While convenient for those with strong income but no lump sum, paying a down payment can significantly reduce long-term costs.