Are Any New Car Dealers Offering 0% Financing?
The short answer is yes, some new car dealers are offering 0% financing, but it's not as common as it used to be. This type of financing is usually offered as a promotional incentive, and it's generally available for a limited time only.
Here's what you need to know about finding 0% financing:
Factors Affecting 0% Financing Availability:
- Interest Rates: When interest rates are low, dealerships are more likely to offer 0% financing as a way to attract customers.
- Vehicle Model: 0% financing is more common on newer or less popular models that dealers are trying to move off their lots.
- Manufacturer Promotions: Check with the manufacturer of the vehicle you're interested in, as they may offer 0% financing promotions directly.
- Your Credit Score: You'll need excellent credit (typically a score of 740 or higher) to qualify for 0% financing.
- Time of Year: 0% financing offers are more common during slow sales periods, such as the end of the month or during the winter months.
Where to Find 0% Financing:
- Manufacturer Websites: Check the websites of the car manufacturers you're interested in.
- Dealership Websites: Many dealerships advertise 0% financing offers on their websites.
- Online Resources: Websites like Edmunds, Kelley Blue Book, and Cars.com often list current 0% financing offers.
Things to Consider:
- Length of the Loan: While 0% financing might seem like a great deal, keep in mind that the loan terms might be longer than you're comfortable with. This can mean you'll be paying off the car for a longer period of time.
- Other Fees: Even though you may not be paying interest, there may be other fees associated with the loan, such as a financing fee or a processing fee.
- Trade-In Value: Be sure to get an appraisal for your trade-in before you agree to any financing terms.
Alternatives to 0% Financing:
If you can't qualify for 0% financing, there are still other ways to get a good deal on a new car:
- Negotiate the Price: Always negotiate the price of the car before you agree to any financing terms.
- Shop Around for Financing: Get loan quotes from multiple lenders, including banks, credit unions, and online lenders.
- Consider a Used Car: Used cars often come with lower interest rates and you can save money overall.
Finding 0% financing requires a little research and patience, but it can be a great way to save money on your next car purchase. Just be sure to do your homework and compare all your options before you make a decision.
