Consumers with excellent credit can qualify for zero percent financing on a car loan. Zero percent financing means you don’t pay interest on an auto loan. Most car buyers try and get the lowest interest rate they can, so they end up paying as little as possible for a vehicle. If you have bad credit, however, qualifying for zero percent APR probably isn’t going to happen.

Pros and Cons of 0% APR

The biggest, and only, benefit to zero percent financing is the ability to avoid paying interest on an auto loan. A zero percent APR can save you thousands of dollars in interest charges over the length of your car loan. Let’s compare common interest rates to a zero percent loan to see how much money you could actually save:

  • Vehicle price: $20,000
  • Loan term: 48 months

Interest rate

Approximate monthly payment

Total interest paid

Overall loan cost





















As for the cons, zero percent financing is usually aimed at car buyers with the best credit. On top of that, the zero percent APR may only be available for certain makes and models or a specific loan term (usually 60 months or less), which means the monthly payment could be higher than a longer loan term with a real interest rate. However, you can reduce the higher monthly payment by making a sizeable down payment.

How to Get the Lowest Interest Rate Possible

Who Gets 0% Financing on a Car Loan?Instead of shooting for zero percent APR, try to qualify for the lowest rate possible. How do you do this? The first thing is to try to get pre-approved from your bank or credit union. Depending on your credit and history with them, you may be able to get a great rate. But, if you’re turned down, you need to consider other types of auto financing.

Before doing any of this, you should know where your credit stands by checking your credit score and viewing your credit reports. In many cases, consumers are turned down for auto financing because their credit isn’t good, or they have a spotty credit history. Double check your credit reports for any mistakes, and dispute them as soon as possible if you find any inaccurate information.

Can’t Find the Financing You Need?

If your credit was the reason you were denied a pre-approval, you generally need to find a dealership that has a special finance department. These dealers have the lending resources available to help credit-challenged car buyers get the financing they need. But, where are these dealerships? Auto Credit Express can help you find them.

We work with dealers all around the US in order to make it easier for credit-challenged consumers to find financing. Let us connect you with a special finance dealership near you for free. Simply submit our online auto loan request form to get the process started today.