When new dealerships offer 0% financing, is it actually 0%? In order for them to sell you the car for 0% financing, they have to borrow the money from the banks and be charged interest. Dealerships are not going to lose money on a transaction so the cost of borrowing is actually buried into the price of your car. There’s no such thing as free lunch.
In addition, 0% financing will not apply to all cars. With 0%, your choice of vehicle options can be greatly limited. Usually the most popular vehicles and new models are not available with 0% financing. Be sure to research whether or not you can obtain 0% on your car of choice.
Unfortunately, not everyone qualifies for the 0%. It’s often reserved for buyers with the best credit. If you’ve noticed, when new dealerships offer 0%, there is “O.A.C.” after it. O.A.C. stands for “on approved credit”.
Next time you’re considering a new car, take a minute to think of the above points.