0 APR Car Deals: Things You Need to Know Before Taking Them

Are you planning to buy a car soon? If you are, then you need to know what options you have first. The thing is, when it comes to buying a car there are plenty of options. To help you find the best deal possible, here we will tell you about an option you might encounter. Namely, 0 APR car deals.

0 APR Car Deals Meaning


Alright, let’s start with the definition first. What is APR? Annual percentage rate or APR is the price you pay yearly based on a given percentage of the money you loan.  A car deal with 0 APR means that you don’t have to pay for the interest at all, thus saving a lot of money in the process.

How 0 APR car deals are possible, you ask? Let us explain. Automakers’ financing companies make money from the interest customers pay. With 0 APR, however, these companies forgo this money, opting to sell more vehicles instead. Such deals are incentives for the buyers, used to improve the sales of slow-selling vehicles and/or to clear inventory.

In finance, 0 APR is as close as “free money” the buyers can get. Not surprisingly, 0 APR is often touted as the best of car deals. It can be the best deal but only if you can find this kind of deal and qualify for it. We tell you how to qualify for it below.

How to Qualify for 0 APR Car Deals

0 APR deals used to be plentiful but not anymore due to the rise of interest rates. Although they are less plentiful than it used to be, you can still find them. Once you found them, the next step is to qualify for them so you can enjoy the 0 interest rate benefit. Here’s how to qualify for such deals.

1. Good credit scoreGood-credit-score

0 APR deals are not available for everyone. These kinds of deals are available only to people who have a good credit score. Here’s the tricky part: the range of “good credit score” can be different from one automaker to another. To find out, just ask the dealership and see if you qualify.

2. A good history of making paymentsA-good-history-of-making-payments-scaled

What if your credit score is slightly lower than the requirement? Don’t give up yet. In some cases, the dealership approves customers who have a slightly lower credit score because they have a good history of making payments.

3. Loyalty to a certain car brandLoyalty-to-a-certain-car-brand

Like a good history of making payments, loyalty to a brand is also a consideration when applying for 0 APR deals. So if you have been buying from a brand multiple times, your previous purchases might be to your advantage.


  • Just because there are 0 APR car deals available for you, doesn’t mean the car is the right one for you. Do your research and take it for a test drive. See if it fits you.
  • Before going car shopping, secure the financing with a credit union or a bank. This way, you will have a backup in case you are not qualified for 0 APR deals.


  • Take a loan for over 60 months. The longer the loan is, the more drawbacks there will be for you. Remember that a car’s value diminishes very quickly, especially during its first few years.
  • Don’t skip down payment, if possible. The more you can pay at the front, the more you can offset the depreciation of the car.

When buying a car, don’t rush. Take your time. You want and should look for the best deal available. These are the things you need to know about 0 APR car deals. Now that you know what it is, how to qualify, the dos and the don’ts, you should be able to decide whether such deals suit you best.