NO DOWN Ads in local newspapers clearly showing the (0 with a slash through it) - NO DOWN PAYMENT! Then...
in small, barely legible print...
restrictions apply? This is a tactic that has reared its ugly head for quite some time now in the auto insurance industry.
I was talking to a married couple at the supermarket one day - chatting about insurance like I always do lol - they said they had just visited one of those NO DOWN PAYMENT agencies? I said "oh yeah? How did that work out for you? Were you able to get the insurance from the agent with no down payment?" They laughed out loud and answered, "NO", and the broker that advertised NO DOWN PAYMENT on his agency window - when all was said and done - wanted $450.
00 to start the insurance policy.
I asked, "what happened to the zero down payment?" Their answer, "the broker informed us that the zero down payment was included in the $450.
00 he wanted to start the policy.
Then he told us that it wasn't a down payment? we were simply paying the fees and the first months premium?" You should have seen her face? You probably have the same look of puzzlement right now if you aren't laughing hysterically! I don't know about you but for me...
if money is leaving my hand and going into an insurance agent/brokers hand for car insurance I just paid the down payment! If the premium is $695.
00 every six months and you cannot pay the entire amount then you would have to schedule the payments into monthly, quarterly, or some other kind of payment plan in order to pay the insurance premium.
NO DOWN PAYMENT makes no sense for a couple of reasons.
Each and every insurance company requires a fiduciary (Premium) from the agency you are buying the insurance from.
If you can pay the entire six month premium then why would the amount be sometimes higher than what the insurance company requires? This is called a broker fee.
We will discuss the differences between an agent and a broker in the next article.
Bottom line - zero down payment does not exist.
Always buy your Auto, Home, Life insurance etc from an authorized insurance agent.
That way you know you will not be paying extra fees in your down payment.