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0% APR Car Deals: Everything That You Need to Know

How to Qualify for 0% APR Car Deals

If you’re in the market for a new car, you’ve probably seen some dealerships advertising 0% APR  car deals. But what’s the catch here? It’s no secret that these dealerships are in the business of making money. So, when they offer 0% APR deals on cars, it’s only natural to wonder if there’s a hook.   

First and foremost, APR stands for Annual Percentage Rate. This is the interest rate that you will pay on your loan over the course of a year.  

Well, we are here to tell you that car dealers with 0 APR aren’t just some fairytales. Dealerships will often offer this kind of promotional deal, but there are still some potential risks you should be aware of. Here are some things to keep in mind:  

These promotional interest rates may only last for a limited time. After the period ends, the rate will likely increase significantly. This can result in you paying much more in interest charges over the life of the loan. Second, to qualify for a 0% APR deal, you usually need to have an excellent credit score. If your score is less than perfect, you may not be able to qualify for the best rates and terms.  

And lastly, car dealerships may try to pressure you into accepting a 0% APR deal by telling you that it’s a limited-time offer that won’t be available later. Don’t let yourself be rushed into making such an important decision. Take your time to shop around and compare offers before making a final call.  

What Is a 0% APR Car Deal?

A 0% APR auto financing deal means that you can make the purchase of the car with a loan from the dealership at 0% interest. This surely is an attractive offer for many car buyers, but we sure are hoping they are aware of some disadvantages this offer brings.   

In case you are considering taking advantage of this offer, check if your desired car is eligible. The dealership will usually limit what vehicles could be purchased this way. Another thing you should know before you go in to get a car is that these offers may require you to put in a larger down payment than you would with a regular loan.  

Even though the interest rate on your loan will be 0%, you will still be responsible for paying any fees and charges associated with the loan so factor that into the payment as well.  

How Do 0% APR Car Deals Work?

Cars with 0% APR financing work much like any other auto loan. While the monthly payments may be lower with this deal, you may end up paying more for the car especially if you fall behind on your installments. Some dealerships may try to sneak in hidden fees or other charges to offset the benefits that car financing with 0% APR offers.  

Before you sign anything, read the terms and conditions carefully, and see if you can budget these payments well. This loan typically has a shorter term than traditional ones.   

How to Qualify for 0% APR Car Deals

This can be an excellent way to finance a new vehicle, so here are a few tips on how to qualify for 0% APR car financing deals:  

  • Have a good credit score. In order to qualify, you’ll need to have a good credit score. The higher your credit score, the better your chances for a successful application are.  
  • Shop around. Not all dealerships offer 0% APR financing, so it’s important to shop around and compare offers of the ones that do.  
  • Know what you’re looking for. Have an idea of the type of vehicle you want before you start looking for a financing option. This will help you narrow down the deals and make it easier to find the perfect one.  
  • Be prepared to negotiate. Once you’ve found a dealer that offers 0% APR car finance deals, be prepared to negotiate the terms. Remember, the goal is to get the best possible rate and term for your loan.  

0% APR Car Deals: Pros and Cons

When it comes to big purchases like cars these deals can be enticing. After all, who doesn’t love the idea of 0% interest? However, there are some potential cons to be aware of before you sign on the dotted line. 

Here are a few pros and cons of % APR car deals:  


  • No interest charges for at least some time. This can save you a lot of money in the long run, especially if you’re diligent with your payments.  
  • Available on a variety of car models and brands. Whether you’re looking for a new or used car, you can find these % APR deals that suit your needs.  
  • Can also help you pay off your loan faster. Since you’re not paying any interest, 100% of your monthly payment goes toward the principal balance.   


  • Many of these % APR car deals come with strict terms and conditions that can be difficult to meet. For example, you may be required to keep the car for a certain number of years.  
  • Can be difficult to qualify for if you have bad credit. In order to get approved, you may need to agree to a higher interest rate or provide collateral.  
  • You will likely be required to make a large down payment. In some cases, % APR deals will only be available if you’re willing to put down 20% or more.  
  • The loan terms may be shorter than usual. This means you’ll have less time to pay off your car loan, which could lead to higher monthly payments.  

0% APR Car Deals Limitations

When you see a car advertised with a low APR, it can be tempting to jump at the opportunity. However, there are some limitations to these deals as well.   

Just because a car has a low APR does not mean that it is necessarily a good deal. The monthly payments may be higher than what you could get with another loan, and in the end, you could end up paying more for the car overall.  

Secondly, there are certain restrictions. For instance, you may have to put down a large down payment or agree to a shorter loan term. If you don’t meet these requirements, you may not be eligible for the low APR. They also do not refer to all the cars the dealer has to offer. The cars with 0 APR offered right now will not stay on this list forever and there is a big chance your dream vehicle isn’t on this list at all.  

Lastly, it is much more likely that there will be new cars with 0% APR financing than used ones, so the loan can be quite big in order to purchase a vehicle.  

Who Offers 0% APR Car Financing?

Now that we thoroughly covered what these offers are and how they work, let’s see who is offering 0 APR on cars.  

There are a few select dealerships and car companies that offer this financing on cars. Depending on the area you live in, there may be more or less options to choose from but be sure to search online who has these deals in your town.   

This is still considered an extremely rare deal that usually only applies to very specific car models.   

Finally, remember that just because you’re getting 0% APR financing doesn’t mean the car itself is free. Not all of those who offer these deals will offer them at good terms so shop around to avoid paying too much.   

Are 0% APR Car Deals Worth It?

The answer to this question depends on a few factors. If you are someone who tends to carry a balance on your credit cards, then a 0% APR deal may not be worth it. This is because you will still be accruing interest on that balance, even though you’re not being charged any interest for a promotional period.  

Additionally, it’s important to read the fine print of these deals carefully. Many times, the 0% APR applies only to purchases made during the special period.   

All things considered, whether or not a 0% APR car deal is worth it depends on your individual circumstances. If you have good credit and can pay off your balance in full before the promotional period ends, then it could be a great way to save on interest charges. However, if you’re carrying a balance or have less-than-perfect credit, you might want to steer clear of these deals.  

Bottom Line

When it comes to 0% APR car deals in reality there is no catch. These are simply promotional offers from car companies and dealerships designed to entice customers into buying a new car.   

These deals are typically only available on specific models and for a limited time. So, if you’re eyeing a particular vehicle, be sure to check for 0% APR offers before making your purchase.  

Last but not least, don’t let the 0% APR fool you into spending more than you can afford on a new car. Just because there’s no interest doesn’t mean the car is free – you’ll still need to pay back the full loan amount plus any taxes and fees. 

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