Yes, you can get a 0% Annual Percentage Rate (APR) on a new car, but it's a special manufacturer-sponsored promotion, not a standard offer from banks or credit unions. These deals are typically reserved for buyers with exceptional credit (usually a FICO score of 740 or above) and are used to clear out inventory on specific models, often at the end of a model year or during major sales events.
The key is understanding the trade-off. A 0% APR offer often replaces a significant cash rebate or other consumer incentive. You need to do the math to see which option saves you more money overall. For example, a $3,000 cash rebate combined with a low-interest loan from your own bank might be cheaper in the long run than a 0% loan with no rebate.
| Scenario | Loan Amount | Term | APR | Rebate | Total Interest Paid | Total Cost |
|---|
| 0% APR Financing | $30,000 | 60 months | 0% | $0 | $0 | $30,000 |
| Cash Rebate + Standard Loan | $27,000 ($30k - $3k rebate) | 60 months | 4.5% | $3,000 | ~$3,200 | ~$30,200 |
| Cash Rebate + Excellent Credit Loan | $27,000 ($30k - $3k rebate) | 60 months | 3.0% | $3,000 | ~$2,100 | ~$29,100 |
As the table shows, the best deal isn't always 0%. You must compare the total financing costs. These promotions are also limited to certain models, usually those that aren't selling as quickly as the manufacturer hoped. You won't find 0% APR on a brand-new, high-demand vehicle.
To improve your chances, check your credit score before you shop. If it's not in the top tier, focus on improving it or consider a co-signer. Always read the fine print to ensure you qualify, and be prepared to negotiate the final price of the car before even discussing financing options.
