0% APR Car Deals: Which Cars Offer Zero Percent Financing?
Zero percent financing means paying no interest on your car loan — but it's not always the best deal. Here's who offers it, who qualifies, and when a cash rebate might save you more.
What 0% APR saves you:
On a $35,000 loan at 6% APR for 60 months, you'd pay $5,600 in interest. With 0% APR, that interest disappears. But manufacturers often make you choose between 0% APR and a cash rebate of $2,000-$4,000 — so the math matters.
Manufacturers That Commonly Offer 0% APR
0% financing comes and goes based on inventory and sales targets. These manufacturers most frequently offer 0% deals:
| Manufacturer | Typical Terms | Common Models |
|---|---|---|
| Hyundai | 0% for 48-60 months | Tucson, Elantra, Sonata, Santa Fe |
| Kia | 0% for 48-60 months | Sportage, Forte, K5, Seltos |
| Chevrolet | 0% for 36-72 months | Equinox, Blazer, Silverado (select) |
| Toyota | 0% for 36-48 months (rare) | Camry, Corolla (when available) |
| Ford | 0% for 36-60 months | Escape, Edge, Explorer (select) |
| Nissan | 0% for 36-60 months | Rogue, Altima, Kicks, Pathfinder |
| Volkswagen | 0% for 36-60 months | Jetta, Tiguan, Taos |
| Jeep | 0% for 36-72 months | Grand Cherokee, Compass, Wrangler (rare) |
Offers change monthly. Check manufacturer websites for current promotions.
How 0% APR Works
When a manufacturer offers 0% APR, they're essentially subsidizing the interest cost. The dealer arranges financing through the manufacturer's captive finance arm (like Toyota Financial Services or Hyundai Motor Finance), and the manufacturer absorbs the interest.
Key things to know:
- •0% APR is only available through the manufacturer's finance company — not your bank or credit union
- •Terms are usually limited (36, 48, or 60 months) — 72-month 0% is rare and the most valuable
- •You typically must choose between 0% APR or a cash rebate — not both
- •Late payments on a 0% loan still hurt your credit score
0% APR vs Cash Rebate: Which Is Better?
This is the most important calculation when 0% financing is on the table. Let's compare:
Option A: 0% APR for 60 months
Vehicle Price: $35,000
Interest Paid: $0
Monthly Payment: $583
Total Cost: $35,000
Option B: $3,000 Rebate + 5.5% APR
Vehicle Price: $32,000 (after rebate)
Interest Paid: $4,750
Monthly Payment: $612
Total Cost: $36,750
In this example, 0% APR saves $1,750 over the rebate option. But change the rebate to $5,000 or the rate to 4%, and the rebate wins. Always run the numbers for your specific situation.
Use our Auto Loan Calculator to compare both scenarios with your actual numbers.
How to Qualify for 0% Financing
Credit score 720+
Most 0% offers require Tier 1 credit. Some manufacturers need 740+. Check your score before shopping.
Clean credit history
No recent late payments, bankruptcies, or collections. Lenders look at your full credit profile, not just the score.
Sufficient income
You need to demonstrate ability to make payments. Debt-to-income ratio matters.
Down payment helps
While not always required, a down payment can strengthen your application and lower monthly payments.
Apply through the manufacturer
0% APR is only available through captive finance arms — you can't get it from your bank or credit union.
Frequently Asked Questions
What credit score do I need for 0% APR financing?
Most manufacturers require a credit score of 720 or higher (Tier 1 credit) to qualify for 0% APR. Some may require 740+. If your score is below this, you may qualify for reduced APR offers (like 1.9% or 2.9%) instead.
Is 0% APR better than a cash rebate?
It depends on the loan amount, term, and rebate size. For example, on a $35,000 car with a $3,000 rebate vs 0% for 60 months: the rebate + 5% APR costs about $1,600 in interest, so the rebate saves you $1,400 more. But for longer terms or smaller rebates, 0% often wins. Always do the math.
Can I negotiate the price AND get 0% APR?
Usually yes for the vehicle price, but 0% APR is a manufacturer incentive with fixed terms — you can't negotiate the rate itself. However, some dealers may try to offset the 0% offer by being less flexible on price. Always negotiate the selling price first, then apply incentives.
Is 0% financing available on used cars?
Very rarely. 0% APR is almost exclusively offered on new vehicles as a manufacturer incentive to move inventory. Certified pre-owned (CPO) vehicles occasionally have reduced-rate financing (like 1.9-3.9%) but true 0% on used cars is extremely uncommon.
Compare Financing Options
Calculate whether 0% APR or a rebate saves you more with our free calculator.
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