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?

Answer
“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.
However, 0% APR might not be 0% due to fees or financing charges.
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.”
avatar
Eric Schad
Answered on Aug 02, 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.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free