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Is 0% APR financing real?
I've heard people say that 0% APR financing isn't real, and it's just a gimmick from car companies. Is this the case? Is 0% APR financing real or fake?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“In some cases, 0% APR financing might be the real deal. Dealerships use it to clear out old inventory, help when sales are low, or provide an incentive for consumers to buy slow-selling models.
In some cases, these fees are rolled into your loan and may cost you about $20 to $50 for each $1,000 financed. For a $30,000 car, that could mean $1,500, which would translate to a car loan that isn’t 0%.
Furthermore, you could probably negotiate a price for the car that’s 2% or 3% lower than the 0% financing price if you pay for the car in cash. This can make 0% APR financing fake, although it’s more semantics than anything else.
Don’t forget that when you buy a new (to you) vehicle, you will need proper coverage. If you haven’t already found insurance, use the free
Jerry
app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”View full answer
- Gregory R.
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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.
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