While it is impossible to ignore all of the negative impacts of the COVID-19 pandemic, it does seem that there is some good coming from it on the consumer end of things. The stock market appears to be rallying (for how long, who knows). Mortgage rates are at all-time lows. Stimulus funds are being given out. Student loan payments are able to be deferred. And automakers are offering 0% APR on new vehicles.
What does 0% APR on a car loan mean? Well, typically, when you borrow money to purchase a car, there is interest that must be on that loan. APR stands for annual percentage rate, which is the interest rate for the year plus any lender fees. Therefore, 0% APR on a car means an interest-free auto loan.
So, if you’re in the market for a new car, now may be the right time to get one if you would like to avoid paying interest on an auto loan.
Some examples of brands currently offering buyers 0% APR on some makes/models are Ford, GMC, Audi, Nissan, Buick, Hyundai, Kia, Mitsubishi, Jeep, Lincoln, Volkswagen, Ram, Maserati, Jaguar, Toyota, Land Rover, Chrysler, Dodge, Lexus, Mazda and Fiat. For a complete list of specific brand and make/model deals, check here.
Personally, if I was in the market for a new car, I would take advantage of one of these offers. However, I just bought a 2014 Mercedes Benz ML 350 4 years ago with 0.99% APR (paid off in less than a year), which I plan to keep for a long time. Back in 2016 when I was car shopping though, Jaguar was offering 6% APR at that time. So, this 0% APR is an especially good deal if you are looking at a luxury vehicle.
I do want to make sure I am not being misleading, though. Just because dealers are offering 0% APR on select vehicles does not mean you will personally qualify for that deal. The best financing deals and incentives are usually subject to an excellent credit score, so keep that in mind before getting your hopes up.
For further information on car buying, check out these articles below.
The 1/10th Rule For Car Buying Everyone Must Follow– Financial Samurai
How Much Car Can I Afford – What You Need to Know– Your Money Geek
To Everyone Who Hates on New Cars– She Picks Up Pennies
Seven Tips For Purchasing Your Next Car– Young, Dumb, and Not Broke
Guide to Buying Your First, or Fifth Car– General Financing for Generation Z
How I’m Saving Thousands After Totaling My Car– The Money Manual
So, will you be taking advantage of 0% APR on a new car?
