Zero Percent Car Loans: Is There A Catch?


When shopping for cars and exploring dealership options you will come across a whole range of ads, flashy banners and sweetest deals, you never knew even existed. It’s easy to tell the odd ones out.

But one car loan deal that seems to be gaining a lot of traction among new car buyers in Canada, and for good reason is the “Drive out your favourite car at Zero Percent Financing!”

Zero percent? It’s what it really says, a 0% APR—you buy the car at an agreed price and then continue making payments on the principal value of the vehicle without any interest. So far so good!

But things take an awkward turn soon and you realize that you should have paid more attention to the fine print instead of being blown away by how welcoming that smooth operator of a salesman was.

The catch

There’s not one, but six in total. The catch depends on a lot of factors including but not limited to the type of dealership and the dealer’s plans with the specific vehicles on offer.

Here’s what zero percent financing is all about:

  • Zero interest may only be offered for part of loan term.
  • Zero may only be offered on some cars.
  • Negotiating the car price will be difficult.
  • The loan structure will likely be set in stone.
  • To be approved, you’ll need spectacular credit.
  • You may not get as much for your trade-in vehicle.

What’s In It For The Dealership?

Since zero percent financing deals are merely marketing tactics, dealerships benefit from them in one way or another. The most important benefit is making you walk in through that door. Once you’re inside, the selling begins.

On the other hand, some dealerships may be offering zero percent financing deals to those with impeccable credit histories just to get rid of slow moving inventory. When a car has been sitting too long in the lot, they can make a profit off of it even at zero percent!

Qualifying Isn’t Easy

In some cases, you might find a zero percent interest deal that’s all you’ve ever wanted, even with the catch. But qualifying might not be as easy. For starters, you need a perfect credit score—something not many of us have.

The Alternative

If you wish to save big on car financing but don’t have the credit score to qualify for zero percent deals, we can help you.

We work with over 15 lenders and if they don’t approve your loan, we do it with our own money! My Ride has been the go to place for savvy car buyers for years, with over 300,000 satisfied clients to show for it! Get in touch with us today to find out how we help you find a car within your budget with a car financing deal that goes easy on you for entire term! *There’s no catch! Period!*

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