Inside Scoop on Zero-Percent Car Loans

Paying for Your Next Car

When you buy a vehicle, you typically take out an auto loan to pay it off. The loan is set for a certain number of months, and each month you pay the cost of the car plus interest.

While interest is usually at a set percentage, there are some instances where you can get zero-percent interest. We here at will give you the inside scoop on zero-percent car loans: how it works, how you can qualify, and some tips to keep in mind.

What Is a Zero-Percent Car Loan?

Getting a Zero Percent Car Loan

As we mentioned above, an auto loan consists of the vehicle payment along with interest. A zero-percent car loan, as you can assume, is when you don’t pay any interest.

This mean you’re paying off just the cost of the car each month but are spreading the payments out over a longer term.

While a car loan usually comes from a bank, a zero-percent loan comes from the automaker itself. Plus, it’s typically available when a new model year is ready to come out—often in the summer months.

How You Can Qualify for Zero-Percent Interest

Most people who qualify for a zero-percent auto loan have a great credit score. However, you could still get one if you have a solid history of making payments on time. If you’re loyal to a particular car brand, you may be entitled to get zero-percent interest on a car loan.

However, if you don’t qualify for zero-percent interest, you could still get a great rate on a loan. Meet with a finance expert at your local dealership, and he or she will work hard to get the terms that work for you.

Tips to Keep in Mind for a Zero-Percent Car Loan

Doing the Math on a Car Loan

It may be beneficial to get a zero-percent car loan for several reasons. You can use the extra money for emergency funds, investments, or other purposes. There’s no penalty for paying the loan off early. Also, just financing the car puts a positive mark on your credit report, which helps the next time you go to buy an automobile.

If you want to get zero-percent interest on a loan, there are several things you’ll want to think about. The main thing is to make sure you find your ideal automobile. Read through various car reviews and comparisons. Decide on which features you absolutely need. Also, don’t forget to test drive a few models to help make the ultimate decision.

When it comes time to buy the car, you’ll want to put down a good amount of money initially—about 20 percent, if you can. This is to help lower your monthly payments and even offset depreciation.

Plus, you’ll want to keep the length of a loan at 60 months maximum, if possible. If you take out a 72-month or longer loan, the car’s value may diminish greatly by the time you finish paying it off.

Learn More About Zero-Percent Car Loans

There are many benefits to getting a zero-percent car loan; you’ll just want to make sure that it’s right for you. We can tell you more about it at Just contact us, and we’ll answer any questions you may have. We can also buy your current ride, so you can get the money you need to put toward a new one.

Don’t wait. Contact us to get the inside scoop on zero-percent car loans today!