Most cars are purchased with an auto loan in Canada. As a car buyer, you want your loan terms to be as flexible and affordable as possible. Getting a zero-percent financing deal means you wouldn’t pay any interest when paying off your loan. It’s almost similar to paying cash for the car excluding the cost for borrowing. Can you get an auto loan on a 0% interest rate in Canada? Sometimes we see dealerships offering this option. Is it true or just an advertising line to attract people?
Buying a car is the second biggest investment after a house for most Canadians. When people come across an offer that reads 0% financing, they’re enticed to explore because this means a lot of money can be saved. While it’s possible to save money through zero percent financing, getting approved with this rate is difficult.
Understanding zero-percent financing
Getting an auto loan means you borrow money from a financial institution or a lender to pay for the car loan. However, there’s no way an institution or lender can let you borrow money for free. You have to pay the interest rate in addition to your monthly payments. In the case of zero percent financing, as mentioned earlier, you can finance a car without paying any interest rate; this option can sometimes be available to new vehicle purchasers which have outstanding credit, and is only offered on new vehicle purchases.
Your credit score plays a crucial role when it comes to getting approved for affordable car loans in Canada. You certainly need an excellent credit score to get approved for zero-percent financing, if there’s any such opportunity available. This is what lenders fail to communicate when offering special 0% financing offers. While people with poor credit can get approved for easy car loans, it’s fairly impractical to think of 0% interest car financing deals with poor credit standing.
Lenders that offer such attractive offers should categorically mention the eligibility criteria or many people will waste their time learning about the offer that they can’t get approved for. Automakers also offer special offers such as 0% financing, but they maintain rigid requirements. A person whose credit score is just below the accepted number can’t get approved.
Who offers zero percent financing car deals
Financial institutions usually don’t offer loans on a 0% interest rate. However, automakers such as Toyota Canada do offer 0% financing options on selected vehicles. If you want to get approved for such an offer, contact Find My Auto to learn more about current available 0% auto financing deals (dependent on your credit score).
About Find My Auto
Find My Auto helps simplify auto financing in Canada and makes it easy for people with all kinds of financial situations to qualify for affordable auto loans. You can apply right now to start the process and get yourself approved.