How to Get 0% Financing on a New Car

Cars and Drivers

Published: January 31, 2025 10:15 am

New car loans usually carry a 6% to 7% interest rate on a 60-month loan. This tends to be true for loans that both car companies and banks offer. Car prices are at all-time highs, around $48,000. That can put monthly payments between $500 and $700. There are ways to get deals that cut that monthly rate. The most attractive is 0% financing.

24/7 Wall St. Key Points:

For car buyers, the most attractive offer is 0% financing.
However, they may have to make sacrifices to get deals for that monthly rate.
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The 0% offer is sometimes on loans that extend for as many as 72 months. That eliminates the risk of higher rates if people wait a year or two hoping car loan rates come down but they don’t.

The disadvantage of 0% car loans is that they are often offered on cars and light trucks that manufacturers and dealers cannot sell. Dealers, in particular, do not want unsold cars taking up room in the lots when faster-selling cars might replace them.

Because electric vehicle (EV) sales have been slow, 0% financing for them is common. Subaru’s interest rate on its gasoline-powered cars can be as high as 5%. A buyer can get 0% annual percentage rate for 72 months on its Solterra EV.

Ford has had trouble unloading its EVs for months. It shows in financing offers. The Mustang Mach-E has a 0% for 72 months offer. Ford named the EV after its iconic sports car brand. The same rate is available for the Ford F-150 Lightning, the electric version of Ford’s best-selling vehicle. Ford also offers a home charging station for free.

EVs are not the only cars available for 0% financing. According to U.S. News & World Report, at least a dozen models for sale carry this interest rate this month.

The Federal Reserve may continue to reduce rates, which would help car loan interest rates drop as well. However, recently the Fed has paused those cuts, so car loan rates may not budge.

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