Purchasing a new car can be expensive, but financing can be a good way to get the car you want without having to put your hard-earned cash down. The best 0% financing deals are usually offered by manufacturers and dealers. These types of loans can also have longer terms than traditional auto loans.
Most automakers are aware of the benefits of zero-interest financing, and they are willing to offer it to their best customers. But it can also be a red flag if the deal is too good to be true. Some 0% financing offers may disqualify you from other rebates, or even strip away any rebates you may qualify for.
The real trick is determining whether you qualify for a deal. If you have good credit, you’ll probably be able to qualify for the best 0% financing deal. But you’ll also have to prove you’ll be able to make your payments on time. You might need a co-signer.
You’ll also have to figure out how much you can afford to pay each month. Some 0% financing offers may require a bigger down payment than traditional auto loans. So do your homework before you sign the dotted line.
Some automakers will offer a 0% car finance deal as part of their commercials, and they may even advertise it on their website. Several automakers, including Toyota and Ford, have captive finance companies that offer 0% car finance deals on new cars.