Car manufacturers offer special sales incentives every month on particular vehicle makes, models, and styles. Incentives vary from month to month.
Incentives come in the form of direct-to-customer rebates, special lease deals, and low-interest loans, including 0% APR loan deals. See Best Car Deals for current new-car incentives, including 0% loans.
Zero percent financing, when offered, means that the customer pays no interest or finance charges on his car loan. This saves money. Monthly payments are smaller and total costs are reduced.
Calculating payments for a zero percent loan is easy. Simply divide the cost of the car by the number of months in the loan. Non-zero-percent loans are much more difficult to calculate and require a car loan calculator.
Are 0% loans good deals?
Zero percent loans are actually good deals but if the car company is also offering a large rebate (over $2000) on the car you want, the rebate is usually a better deal. The rebate is also better if you are short on down payment money because it acts as a down payment. Of course, you can’t take the rebate and the 0% loan — you must select one or the other, but not both.
Another reason you might not want to select the 0% APR loan is that it requires a very high credit score to “qualify.” Therefore, before you go to a dealer to accept a special low-interest or zero-interest loan deal, make sure you know your credit score in advance. You can get your credit score, free, at online services.
Again, you can see car company incentives, including 0% APR car loans, at the Best Car Deals web site.