Are there any drawbacks to a 0% interest car loan?

"A local car dealership is running a 0% interest rate special, and now I'm interested in buying a new car.

Are there any drawbacks to a 0% interest loan?"

Answer
“If you pay on time every month, a 0% interest car loan is a fantastic idea to save you money.
But, as with any financial contract, you need to read the fine print.
Some of these deals stipulate that they can add tons of expensive fees or increase your loan rate should you miss any payments. In addition, the 0% interest rate might also be temporary and increase to another amount at a certain point.
You’ll also have to qualify for the deal, so, unless you have stellar credit, there’s a chance you might not get approved.”
avatar
Eric Schad
Answered on Jun 09, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free