How do I get a zero percent car loan?

I've heard that zero percent car loans exist and they're the ultimate way to save money when buying a car. How would I get a zero percent loan?

Answer
You’re right! Zero percent car loans are the holy grail when purchasing a car. You can save thousands of dollars on interest and fees with a zero percent loan.
That said, it can be difficult to find lenders who offer them, but it’s not impossible.
To get a zero percent car loan, you’ll need excellent credit. As lending is based on risk, lenders reserve the best rates for the lowest risk customers. Having an excellent credit score shows lenders that you are dependable. You likely have a very low debt-to-income ratio and are financially stable, too.
Some dealerships also run zero percent financing specials for those who qualify. You’ll need to speak with one of the dealership’s representatives to determine what criteria you have to meet. These sales typically happen a few times a year, normally around the holidays.
If you don’t have excellent credit right now, don’t worry! You can work to improve your score by:
  • Paying your bills on time
  • Paying off your credit card balances
  • Not opening new lines of credit unless absolutely necessary
  • Reviewing your credit reports often to ensure there’s no inaccurate information
If you have a good credit score right now, shop around with different lenders. Every lender offers different terms, conditions, and rates. Even if you can’t find a loan with 0% interest, you might find something as low as 1%!
To save even more money on car expenses, also shop around for car insurance. Jerry makes it easy!
A licensed broker, Jerry does all the hard work of finding cheap quotes from the top name-brand insurance companies and buying new car insurance. Jerry will even help you cancel your old policy.
And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.
Emily Maracle
Answered on Oct 26, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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