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?

Answer
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.
avatar
Eric Schad
Answered on Mar 08, 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.