Where can I obtain a 0% car loan? Car manufacturers may offer no-interest – or 0% car finance – deals through their dealerships in order to entice new business. It is very unlikely to find a traditional lender offering a car loan with a 0% or 1% interest rate.
Consequently, can you get a car on finance with no interest?
What are 0% car finance deals? 0% car finance deals are interest-free loans. As you don’t pay any interest on your monthly payments, your money goes directly to paying off the car and you normally end up paying as much as a cash-buyer, just not in one go.
Secondly, is 0 finance a good deal?
0% APR car finance is not a scam but it does have limitations. The truth is, most people will not qualify for 0% car financing, as you’ll need to have a very good credit score. … You’ll also find that 0% finance deals are likely to be shorter deals with higher monthly payments.
Is a 1.9 interest rate good?
Dealerships will often advertise very good interest rates on new cars: 2.9%, 1.9%, sometimes even 0%. What they leave in the fine print is that these rates are only available to buyers with the best credit—that may mean a FICO score of 750 or better.
It is possible to find 0% interest deals, but these are reserved for new cars and are often restricted to specific models and time periods. Therefore, majority of car buyers taking out a finance contract will end up paying more than the car is actually worth.
The average new car’s interest rate in 2021 is
|Credit score category||Average loan APR for new car||Average loan APR for used car|
|Super Prime (781 to 850)||2.34%||3.66%|