0% APR car deals can be a great way to save money on your next vehicle. However, you should approach the offer with caution. They are not right for everyone. The best thing to do is to shop around and compare the different offers.
There are two main types of financing available. You can finance your new car through an outside lender, or you can finance your car through the manufacturer’s finance company. Each type has its own eligibility requirements, so you should check the fine print.
If you choose to finance your car through the manufacturer’s finance company, the cash back rebate may be included in the price. This could mean you are paying a higher monthly payment, but you can expect to save a lot of money in the long run. However, be sure to read the fine print carefully to ensure you are getting the best deal.
In addition to the cash back rebate, automakers frequently offer a higher rate of financing to help you make your purchase. This type of financing is called special financing. You may need to have excellent credit to qualify, and the interest rate may be higher than you would get through a traditional auto loan.
Another common gimmick used by automakers is a 0% APR car loan. This offer is meant to encourage consumers to purchase cars from the manufacturer. However, you should be aware that some dealerships may pressure you to buy extra items not covered by the 0% APR deal. This is a form of bait-and-switch.
If you are interested in a 0% APR auto loan, you should pre-approve your loan before you start shopping. This will allow you to compare the various offers available and help you understand how lenders view your situation. It will also give you a backup plan should you not find an automaker-exclusive offer.
Be sure to check with the three major consumer credit reporting agencies before applying for any kind of vehicle loan. You can also challenge any erroneous information on your credit report. This will help you avoid having to pay interest for the life of the loan.
A 0% APR car loan may seem like an excellent deal, but it can be too good to be true. You should shop around for the best rates before you decide to finance your car through the manufacturer’s financing company. You can find the best auto loan offers through SuperMoney’s auto loan offer engine.
You may also be able to finance your car through an outside lender, depending on your credit score. If your credit score is in the high 700s, you should be able to qualify for a 0% APR car loan. However, you may still have to pay interest on your new car for the life of the loan. This can add up to $3000 over five years, and it will dampen your excitement about purchasing a new car. It is important to find a lender who can offer you the best rates.