0% financing on car--is there a catch?

I don't think so. Your credit has to be excellent to get the 0% and normally there are certain terms on the length on the loan when you do 0%. I think it may depend on the lender. when we bought my wife's car from Honda it was 0% for 48 months or 1.9% for 60.

You usually don't get all the rebates if you go the 0% route.

Sometimes a dealer will cut more off sticker if they're making a bundle on the interest.

In this case, they may not reduce the price as much in order to make money off the sale and not the finance.

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0% is always free money, but there is a catch. The catch is that they don't come off the sticker price much at all for the 0% incentive. Financing options often vary as they inch up percentage points while the sell price decreases.

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what if I don't disclose the fact that I am wanting to do the 0% financing until after the deal is set with the price of the car?

No catch other than you are borrowing more up front. The first few years you will be "upside down". But you won't have spent several grand up front.

You will still have some fees due at signing that can't be rolled into the financing. But if you plan on keeping the car 7-8 years - borrowing money for free is usually a good thing.

My wife and I bought our first new vehicle after she graduated last year and the only credit we had were two credit cards. Paid $500 above the invoice and got 0% for 60. Plus a big rebate.

If your company doesn't offer the "X Plan" you don't know what your missing.

More often it's best to take the rebates instead and find your own financing

Dealer will probably offer you something higher than you can find on your own

Can you tell me more about the "x plan". My company offers it but I really haven't researched it. I'm going to be buying a car in 2-3 months. Thanks

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It's for ford and Lincoln I believe


It's basically an agreed upon price that's slightly above invoice

It's a good price that involves no negotiations but the price can easily be beaten by a decent negotiator

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This is correct.

It is great if you don't feel like haggling.

When Ford still owned a piece of Mazda, I bought two Mazdas with this.

In both cases, I got dealer invoice - factory to dealer incentives AND 0% interest.

Hell my last Mazda, I called the dealer and told them what car I wanted, showed up and was gone in 30 minutes.

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0% is always free money, but there is a catch. The catch is that they don't come off the sticker price much at all for the 0% incentive. Financing options often vary as they inch up percentage points while the sell price decreases.

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That's why when you agree on a price, you slap down a pre approved auto loan check from your bank.