How can I avoid paying interest on a car loan?

I hate the thought of paying a ton of interest on a depreciating asset like a car. Is there any way to avoid paying interest on a car loan?

Answer
Paying interest can definitely be frustrating! The only ways to truly avoid paying interest on a car loan are:
  • Paying cash for the car
  • Finding a 0% APR rate
If you don’t have the money to pay cash, the 0% APR rate is the best way to go. However, these are only found during promotional periods and you’ll need an impressive credit score to qualify for them.
If you’re not able to use either of these methods, you can also minimize the amount of interest you pay by shopping around and making a large down payment. Both of these should effectively cut your interest and get you on the positive side of equity in a shorter period of time, if not immediately.
Just make sure that you also shop around for car insurance so you budget properly. With the Jerry app, you can search car insurance rates from over 50 providers to cut your costs even more. And once you find a plan you like, we’ll even help you switch!
Best of luck with lowering your rates!
Eric Schad
Answered on Dec 13, 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.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store