If approved, you can make payments on your new car over a set term without having to pay any interest. What's the payment on a $40,000 auto loan paid over 60 months? Buying the latest version of the Sonata offers a choice between $1,500 cash and 0% APR for 72 months. This is for demonstrative purpose only. The companies giving out these loans only approvethe well-qualified buyers with premium-rated credit. The catch is that, unlike a rebate, you'll probably have to shop around with multiple dealers in order to find one that's willing to pass along the full amount. Loan Amount $ Interest Rate % Length in Months. Automakers are offering 0% APR offers in conjunction with holiday car deals. In most cases, however, this doesn't end in the buyer's favor. For instance, using our loan calculator, if you buy a $20,000 vehicle at 5% APR for 60 months the monthly payment would be $377.42 and you would pay $2,645.48 in interest. 0% APR financing can save you a lot of money on your car purchase since you're not paying any interest on the car loan. This doesn't account for insurance, maintenance, gas, or other costs. We've never seen a deal this good before on the Bolt when it comes to low APR. In addition to offering no interest for 7 years, GM Financial is offering a whopping $7,000 cash incentive in the form of down payment assistance. Nissan cut rates on the latest version of the Titan for Black Friday and is continuing to offer 0% APR for 84 months. Mazda has 0% interest loans for 60 months on a number of models and its offering 90 days of deferred payments on new purchases. That's a $42 advantage in payment with an over $3,000 difference in cost before taxes & fees. More. But it may feel like a bait-and-switch if you pick out a car, test-drive it and negotiate a price only to find out you don’t qualify because your credit isn’t quite good enough. Whether or not you choose to buy it cash, or spread your payments over 60 months with our interest free car finance … 0% car loans vs. rebates. The average price of a car is around $36,000 and with 0% financing over 60 months, monthly payments come out to around $600. Make sure you negotiate the actual price of the vehicle as well as add-ons, and don’t just take the first deal offered. Thanks to our great car 0% APR finance packages our deals are clear and straight forward. Loan Amount $ Interest Rate. According to Experian, you’re looking at a score above 740 to qualify for the top financing rates for new cars. MONTHLY PAYMENT. Enter your loan details and click calculate. Shoppers this month will find unprecedented deals. Two other factors are important in how a lender determines whether you qualify for a 0% APR loan. Months. Expect 84-month rates in most states to be considerably higher at 2.9% APR. The cost savings in a 0% interest car loan can be substantial for the right buyer. That's $55/month more expensive than what you'd find by taking 0% APR. How is it possible? A zero percent car loan is a car loan where you pay no interest; you’re borrowing money from a bank but paying nothing extra for the privilege of doing so. COPYRIGHT 1999-2021 MH Sub I, LLC dba CarsDirect.com, Honda is offering 0% APR for the first time ever, Interest-free loans have become increasingly popular, 2020 Honda CR-V: Finance From 0% APR For 60 Months, 2020 Chevrolet Equinox: Finance From 0% APR For 84 Months + $4,900 Cash, 2020 Mazda MX-5 Miata: Finance From 0% APR For 60 Months + $500 Bonus Cash, 2020 Ford Fusion: Finance From 0% APR For 84 Months, there's a screaming good deal on the Fusion, 2021 Hyundai Sonata: Finance From 0% APR For 72 Months, 2021 Kia K5: Finance From 0% APR For 60 Months, 2020 Chevrolet Bolt EV: Finance From 0% APR For 84 Months + $7,750 Cash, 2021 Nissan Titan: Finance From 0% APR For 84 Months, the best APR deal you're bound to find on a full-size truck, Chevy Brings Back Crazy 84-Month 0% APR Deals, Top Honda Deals & Must-Know Advice In January, Best Black Friday Car & SUV Deals For 2020, Top Jeep Deals & Must-Know Advice In January, Ford Bronco Sport Markups Can Reach $10,000, Best Presidents' Day Car & SUV Deals For 2021, Every New Car Lease Deal Under $199 In January 2021, Cheapest Car & SUV Lease Deals In January, Top Mercedes-Benz Deals & Must-Know Advice In January. Prefer to lease? What's more, non-GM customers can score an extra $750 for $7,750 in savings. If there are other incentives offered as a secondary option to your 0% financing rate, then the choice may be a little harder. EVs aren't for everyone, but this month's deal on the Bolt could make it incredibly tempting. With the rebate, a 6-year loan at 5% would cost nearly $2,500 in interest at approximately $451/month. I understand the concept of an "interest-free" loan for 60 months that many dealers are offering to those with good credit. Ford Credit is offering 0% APR for 84 months on all versions of the brand's only midsize car. But wait, there's more. I prefer 72 months because it still lets me stay ahead of the vehicle's depreciation, and I'd rather put an extra $80-100/mo elsewhere rather than a virtually interest-free loan . Don’t overlook this number! To illustrate how much slower borrowers pay down interest with a long-term car loan, we'll use our first example again. 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