What Car Dealerships Are Offering 0% Financing

Is Zero Percent Financing Actually A Good Deal

Zero percent financing is a good deal if you can afford the loan. Its also a good deal if you had your eye out for a new car for a while, your credit score looks excellent, you crunched the numbers in your budget to figure out a monthly car payment you can afford, and the perfect 0% financing deal came up for a car on your shopping list.

Are Long Loan Terms A Bad Deal

Long loan terms typically require a higher interest rate since thats how lenders make their money, which leads to a long-term loan ultimately costing thousands more in the end.

But what about those long loan terms that offer 0 percent financing for 72 months or longer?

On the surface, the longer you can get 0% APR, the better.

But theres always a catch. Dealers arent offering 0% APR out of the kindness of their hearts, so you can expect there to be special restrictions like that rate only applying to certain models or charging car buyers heavily on other things like add-on products and extended warranties.

What Makes 0% Car Finance Different

The main difference with 0% APR car finance is that youre not charged any interest on your borrowing.

Not being charged interest saves hundreds of pounds over the course of a typical car finance agreement.

For more information about interest rates, take a look at our guide on the difference between representative APR and exact APR.

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What Is 0% Car Finance

A 0% car finance deal means you don’t pay any interest on the amount you borrow to buy the car.

With a 0% deal you normally have to pay a deposit and a series of monthly repayments. The total of these payments add up to the full cost of the car.

There’s no interest added to the loan. But there might be other fees and charges added to the cost of the car.

Both Personal Contract Purchase and Hire Purchase agreements can be offered with 0% finance.

We dont offer 0% car finance deals this guide is for information purposes only – but we do offer a whole host of finance types including PCP, HP, and personal loans.

How To Get A Good Deal Without A 0% Interest Car Loan

There are a number of things you can do to get a better offer on your next vehicle even if you dont qualify for 0% financing deals. These include the following:

• Get pre-approved. It makes sense to get pre-approved for a car loan to find out how much you have to spend before you start shopping. This will give you a good bargaining chip to drive the price of your vehicle down when you get to the dealership.
• Compare prices. Shop around with multiple lenders to get the best rates on your loan. Once you know how much you have to spend, shop around with multiple dealers to find the best price on offer for the vehicle you want.
• Shop for a used vehicle. Check out online offers for used vehicles or ask to see the inventory of used cars with your dealer. Just be aware that it can be more difficult to get financing if the vehicle is older or has high mileage. Learn more about buying a used car.
• Look for sales or special offers. Wait for sales such as employee-pricing events or cash-rebate offers to save the most money on your car. This will let you drive off the lot with the best deal possible.
• Improve your credit score. Work on improving your credit to make sure you can qualify for the lowest interest rates available. Start by finding out what credit score you need to get approved for a car loan.

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When Do Dealerships Offer 0 Financing

When you see a dealership advertising zero-percent financing, it means the car dealer is offering to lend you money for a new car without charging any interest fees over the life of the loan. At first glance it may seem like a charitable act, because with traditional loans, lenders make the money back through repayments, plus some as a result of interest fees made over the life of the loan. A 0% car loan, though, offers no reward to the dealership.

What Is A 0% Finance Deal

A 0% finance deal operates much like any loan you borrow money from a financial institution which you agree to pay back over a set period of time. Whereas most contracts of this type will charge interest for borrowing the money, zero per cent deals dont cost you an extra penny effectively youre spreading out the original cost of the car into more manageable chunks.Depending on the car youre looking for, these 0% deals will be applied to either a Hire Purchase or Personal Contract Purchase agreement. The option you pick will depend on what kind of ownership you want.

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Who Is Offering Zero Percent Financing On Cars In Canada

In Canada, youll often find specific dealerships or car brands offering 0% financing promotional deals. Unfortunately, 0% car finance offers will be much less common from banks and private lenders. That being said, you may find some private lenders, like Loans Canada, that offer 0% financing to those who can meet stringent eligibility requirements.

How To Find 0% Finance Deals

How to find car financing dealsCheck your credit history to see if youre likely to qualify for 0% interest. Search manufacturers websites for deals. The car manufacturers website is a great place to begin searching for 0% APR interest car deals on the car you want.Contact local dealerships to make sure a 0% APR car deal is still available.

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When To Avoid 0% Financing

Zero percent financing is a bad deal if you cant afford the loan. If you want to buy a new car just because a 0% financing deal seems too good to pass up, you may want to pause and reconsider.

Were you even looking for a new car, or did you come across a great financing deal and get car fever? Even if you dont pay any interest on the loan, can you make the monthly payments work within your budget? Are you comfortable with the risk involved with financing a car rather than owning it outright?

Any new car shopper needs to consider all of these questions. In other words, dont rush into a car loan that you cant afford just because of an attractive 0% offer. Automakers run deals like these all the time. So theres nothing wrong with taking your time to give some extra thought and planning for your next car purchase.

Another thing to keep in mind: What can you afford as a down payment? If you get 0% financing on a new car loan but make a low down payment, then youll be upside down on your new vehicle the second you drive it off of the lot, and your new car becomes a used car.

Being upside down on a car is never a good thing, and it can mean you need gap insurance. This more expensive coverage pays the difference on what you owe versus what a car is worth after depreciation if the vehicle gets totaled. A good rule of thumb is to put at least a 20% down payment on a vehicle to avoid financial insecurity.

The Repayment Terms Dont Fit Your Budget

Low-interest car loans often come with shorter finance terms. Depending on your income, a shorter loan term could make your monthly payment unaffordable.

For example, if the 0 percent car loan lasts for four years in instances when you would typically finance for five years, the cost difference can be meaningful. On a $25,000 car loan through the manufacturer for four years, your monthly payment would be about $520. By comparison, a $25,000 car loan financed over five years at a 4 percent interest rate would feature a monthly payment of $460. You can use an auto loan calculator to do the math for your prospective loan.

Financial experts often recommend keeping your monthly vehicle payment to 20 percent or less of your monthly take home pay. And some experts suggest that you cap your car payments at 10 percent of your gross income.

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If You Want To Finance A Brand New Car With Low Monthly Payments But Want To Avoid Interest Charges Check Out The Latest 0% Apr Deals

Getting a car with 0% finance – also known as interest-free credit – is one of the simplest ways to pay for a new car. The cost of the car is split across a deposit, a series of monthly payments – and in the case of PCP finance, an optional final payment as well, which you make at the end of the contract if you want to keep the car. This means that whether you opt for PCP finance or Hire Purchase, the cost of the car is cut into bitesize chunks, with nothing charged for the finance.

Unlike most car finance offers, there are no interest charges associated with 0% APR deals. This means the sum total of your payments should add up to no more than the full cash price of the car. Just remember that with PCP finance you have to make the large optional final payment – which could amount to half of the initial price, or even more – as well as the deposit and monthly payments to take ownership. Even with 0% APR PCP finance, though, the total amount you pay, including the optional final payment, equates to no more than the initial price.

So when youre shopping around for the best deals, its worth getting like-for-like finance quotes on both new cars and equivalent nearly new or used models. Then you can directly compare the monthly payments to see which option offers you the best value.

If you’re open to going used to get the most affordable car finance, have a look at some of the used car finance deals available now on BuyaCar.

Frequently Asked Questions About 0% Financing

• Do I need a down payment for a 0% financing?

  That depends on your lender. A down payment can help you pay your loan back much faster and it also shows your lender that you have savings. You can also make sure your car doesn’t depreciate beyond what it’s worth by making a large down payment.

• Can I get 0% financing for a used car?

  Almost never. If you’re offered a 0% car loan for a used car, you should read the fine print to see if there are any extra costs or fees to make up for the lack of interest being charged. It’s also possible that your dealer is overcharging you for the vehicle to make up for the 0% interest rate.

• Can I get 0% financing on new cars in Canada?

  Yes. You can usually get 0% financing on new cars in Canada if you have a good to excellent credit score and meet other eligibility criteria.

• What credit score do I need to qualify for 0% car financing deals?

  You’ll usually need a credit score of at least 700 to even be considered for 0% financing in Canada. This number may be even higher depending on which lender you apply with.

• Can I get 0% financing on cars in Ontario?

  Yes. While many car brands roll out 0% car financing deals nationwide, local dealers may have some flexibility to offer deals based on their inventory. If you’re looking for 0% financing on cars in Ontario, your best bet is to visit your local dealerships to discuss your options.

• What does APR mean?

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% Finance: Things To Consider

Before you dive into the list of new cars available with 0% APR finance, though, consider your other options:

• Getting this rock-bottom rate often requires a large deposit, so you may need to spend a chunk of your savings to access one of these deals. Interest-free agreements aren’t usually available with no-deposit finance.
• 0% finance offers may not include savings available with other finance deals , so you could end up paying more overall. To find out which offers you the best value, get like-for-like quotes with the same deposit, contract length and mileage allowance to see which has the lowest monthly payments and costs you less overall.
• 0% APR car finance is generally only available for new cars. Where it is available on used cars, this typically means you’ll be paying an artificially high cash price, as dealers often inflate the price to cover what they lose by not charging interest. Consequently, 0% APR used car finance can actually be more expensive than equivalent finance deals on similar cars that charge interest but offer much lower cash prices. Get like-for-like finance quotes to find out which offers you the best value.

Scroll down for all current 0% finance deals, arranged alphabetically by brand, or see below for our pick of the best deals.

What Are The Disadvantages Of 0% Apr Finance

You might not be able to spread the cost over a longer period.

May have minimum deposit requirements, unlike standard APR offers, which can be as little as one monthly payment.

May only be offered on selected models.

May only be offered on selected finance products i.e. Solutions PCP only.

If any particular terms or restrictions do apply, this will be clearly listed in the finance offer terms and conditions.

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Who Has 0 Percent Financing On Cars

With 0 percent financing car deals with Honda, you can now own the 2022 Honda HR-V. This highly reliable sport utility vehicle can be yours with 0% financing that you can get for 36 months. However, if you do not wish to buy this ride or it still feels out of budget, you can opt for the available lease deal.

Katapult Wheel & Tire Lease To Own Financing Faqs

• Must be 18 years of age or older to apply
• A valid credit or debit card to make recurring payments.
• A current, valid US address that is active with the USPS
• A valid Social Security or Taxpayer ID Number
• A valid email address

Katapult is a no credit required payment option and does not pull or impact the customers FICO score information.

Katapults lease purchase agreements are available in lengths of 12 or 18 months. For leases $300 $2,000 a 12 month term will be offered. An 18 month lease will available when the amount spent is $2,001- $3,500. Offers may vary by state regulation, amount of the purchase or other factors. These terms are subject to change, check the manual regularly for changes and updates.

You cannot make a down payment at the initial time of purchase. You could however pay down your loan when you receive your first bill.

You can elect to pay off their product early. Katapult offers a 90 day early purchase option which allows you to payoff their lease within 90 days for only the cash price plus 5% and any applicable tax. The first payment of $45 will not be credited to the early payoff amount of the product, unless legally mandated.* If you do not buyout the lease within the 90 day early purchase option window, you will continue making recurring payments according to their lease term. You will always have the option to buy out the item in subsequent months, at the price referenced in the early purchase option schedule contained in the lease agreement.

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How To Get 0 Percent Apr On A Car

Negotiate the purchase price before you ask for the 0 percent APR offer.Get preapproved for an auto loan before you visit the dealership.Confirm that you can afford the monthly payment.See if the manufacturer offers a cash back incentive program that you can combine with the special financing offer.

Which Cars Have The Best Financing

Best Car Financing Deals:2022 Alfa Romeo Stelvio: 0% financing2022 Audi A4: 1.99% financing2022 Buick Envision: 0% financing2022 Cadillac XT6: 0% financing2022 Chevrolet Colorado: 0% financing2022 GMC Yukon: 0% financing2022 Honda Pilot: 0.9% financing2022 Hyundai Ioniq: 0% financing2022 Kia Stinger: 0.9% financing2022 Mazda Mazda3: 0.9% financingMore items

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% Apr Vs Cash Back Offers

Dealerships may offer either a cash back rebate or 0% APR but not both, usually. As such, youll have to be prepared to make the best choice for your financial situation. Sometimes, it makes more sense to opt for the cash back rebate instead.

The best thing to do is look at the total cost over a certain period. As the example below shows, three years into a five-year loan, taking the cash rebate and borrowing less money results in a lower total cost of the loan however, the monthly payment is higher. The choice you make will depend on whats important to you the lower monthly payment from the 0% APR deal may or may not be worth the higher overall cost.

How Does Carwow Get You The Best New Car Deal

carwow empowers the car buyer by making manufacturer-approved dealers come to you with their best deals. This means you can compare upfront prices from several dealers side by side, on as many cars as you like and in your own time.Dealers cant contact you, all offers are submitted through carwow so theres no hassle from them. You can get in touch with dealers at anytime by messaging, calling or visiting them in person at the showroom.If you choose to buy a car, youll do it directly from them.

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