Just curious about how people get those car deals for 0% interest. I read it could consist of how much the down payment is, but are there any other factors that would contribute to this?

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Zootallurs t1_iydj00l wrote on November 30, 2022 at 4:31 PM

Typically, 0% is only through a manufacturer and it's instead of a discount.

SpiritualCatch6757 t1_iydkx65 wrote on November 30, 2022 at 4:43 PM

The only requirement for me to get 0% APR was to:

Have the required credit score, 760+
Finance the vehicle through the manufacturer's financing division
Finance only for the term length specified. I wanted 84 months, at 0% why not? But they would only do 60 months.
Had to choose from existing new vehicle on the lot. Cannot order a custom vehicle.

I did not need a down payment but I did buy a very unpopular 2012 vehicle that had been sitting for over 6 months back in October 2012. 2013 Models had already come out.

Mashtatoes t1_iydjmpk wrote on November 30, 2022 at 4:35 PM

You’ll only get a 0% rate if it’s advertised by the manufacturer and have good credit. If it’s not something the manufacturer advertises, it’s not something that will be available (especially in this interest rate environment).

sandra_p t1_iyeq8r6 wrote on November 30, 2022 at 9:07 PM

Just a way for manufacturers to sell more cars. I got 0% in mid 2020, after the 2021 models came out, but I'm not sure you're going to find that at the moment.

wessex464 t1_iydxdfd wrote on November 30, 2022 at 6:03 PM

It's less of a loan and more of an advertising gimmick rolled into a loan. Yes, you'll save money on interest but you are absolutely still paying it just rolled into the sale price of the vehicle.

[deleted] t1_iye1100 wrote on November 30, 2022 at 6:26 PM

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BacktotheFutureTmw t1_iyeqxp5 wrote on November 30, 2022 at 9:12 PM

I have purchased three new cars with 0% - they were advertised at the time, but one actually was not. I had negotiated and got it down to the price I wanted and the dealership was closing for the night. They relented and gave me both 0% (newer vehicle year vs the end of the last year's model) and let me put a larger down payment than they typically allowed on a CC that I got cash back for. Now - they had made a mistake earlier because they had said that 0% was for the upcoming model year, so it was really an error on their side and I think that's why it worked in my favor. I was in my early 20's at the time, so honestly no idea. They may have just wanted to secure the sale for all I know.

Good credit and low debt-credit ratio is really what you need. I have never paid sticker price for a 0% vehicle either - I enjoy the negotiation part. Even got a 2016 Corolla (when new) for $3k less than sticker with 0%...even with tax/fees it didn't come close to MSRP.

Expensive-Dress-1022 t1_iyf6crs wrote on November 30, 2022 at 10:57 PM

I work at a car dealership. They are just offered promotionally to move cars, of course they lose money doing this. All the car ads you’ll see on TV with surprising low or 0 rates right now are most likely for 2022s. Clearing those out as 2023s come in. And of course this isn’t made extremely clear from the ad.

You do typically need excellent credit, occasionally there is a required minimum down payment, but all of that is secondary to selecting a car that the program applies to. You’re not going to get 0% on a 2023 hot model that is flying off lots all over the country.