An important part of buying a new car is finding the best possible car loan. For most people, that means the lowest possible interest rate. Since low rates are the best, a 0 percent loan seems like the ideal. While these loans do exist, they can be a challenge to find, meaning many people wonder whether it is even possible. With a bit of luck and good credit, you should be able to get a 0 percent loan, at least for a little bit.
Why They Are Offered
Logically, a 0 percent loan doesn’t make any sense from the lender’s perspective, as it makes profits off the loan interest. Because of this, these 0 percent loans are typically only offered by the financing department at a dealership. The idea is that by offering such a low rate for a given period, they will make more sales and make more money overall. It is a great way to increase sales of models that don’t sell as well or make space for newer vehicles.
When to Look
If you want a 0 percent loan, you will have to time your car purchase correctly. Expert analysis shows that they typically occur at set times. This is specifically during the summer months as a way to boost sales of the outgoing model year vehicles and make room for the newest versions. Therefore, if you know the new models are arriving in the near future or just arrived, check if there are 0 percent loans available. Keep in mind that sometimes dealerships will also simply pay your loan interest, depending on the situation.
0 Percent Loans: Who Will Qualify?
Not everyone will qualify for a 0 percent loan. As expected, you are much more likely to be approved if your credit is excellent. Each dealership has a different definition of excellent credit, so be sure to ask what the minimum is. You may also still be eligible if your credit score is slightly under the dealership’s range but your history of always making your car payments on time is good or you have been driving the brand for years.
The team at McKenzie Motors always works hard to get you the best possible financing rates so you can drive around Milton, Florida, in a vehicle that meets your needs and budget.