It is a tricky move. You see it all the time from companies big to small, 0% Financing! They throw it in your face as if to tell you, “you are an idiot if you don’t take advantage of these savings.” It is hard not to feel that way too. You begin to doubt that everything is meeting your needs, and you need something new. Of course this isn’t that case, but that is what they want you to think. Most of the time, you don’t even need what they are offering. But who doesn’t like new things, right? Especially if you can get them for 0 down, or 0% financing for the next 12 months.

There are cases when this can be something that works in your favor. But it is crucial to understand many important factors before going out and visiting their ‘Red Tag Event’, or whatever they call them. Consumers have so many misconceptions about 0% financing. They fall right into the trap. If you know the Saving Thousands Rules, following Rule 5 will keep you from falling into this trap, if you know their tricks they won’t work.

Financial expert Robert Palmer, host of Saving Thousands, explains when consumers need to take advantage of these offers and when to stay away: