Services
Insurance
Loans
Repairs
Advice
About

Are zero percent car loans really a good deal?

I've heard of zero percent car loans, but they seem too good to be true. Are they all they're cracked up to be?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
In theory, a zero percent car loan is a fantastic deal. With every cent of your monthly payment going toward the principal and no interest paid, you stand to save thousands over the life of the loan.
But the devil is in the details. Typically, you have to have a good credit score to qualify (700 to 750). In addition, many car dealerships run specials that give you two options: a zero percent loan or bonus cash back. You’ll have to do the math as to which one is better for you, but sometimes the bonus cash is the better option, regardless of whether you put it toward the loan or in your pocket.
View full answer 
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

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