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?
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.
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