Is there any way to avoid paying interest on a car loan?

I hate paying interest on my purchases. Is there any way to avoid paying interest on a car loan?

Answer
No one likes to pay interest on a car loan or any other loan for that matter.
The only surefire way to pay no interest on your car loan is to get 0% interest financing. These deals are typically only offered by the manufacturer as a promotional rate. You can look for it on these occasions:
  • Holidays, such as Christmas or Labor Day
  • The end of the year when the dealer wants to clear out old stock
  • When car sales are lagging
Remember that 0% interest car loans are available only to extremely qualified buyers, meaning you’re going to probably need a superprime credit score, which is anything 780 or above—as well as enough income and a low debt-to-income ratio.
But don’t let your savings end there. You can also save money on car insurance! Sign up on the Jerry app to compare quotes from dozens of insurers so you get the best rate for your brand spanking new car.
Eric Schad
Answered on Nov 03, 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.
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