With the average price of a new vehicle having skyrocketed by around $10,000 over the last five years, car shoppers are justifiably suffering from sticker shock, with the affordability problem only being exacerbated by financing rates that have nearly doubled since 2022. They’re slowly heading in the other direction of late, but it still costs a bundle to borrow money on a new car. According to the Experian credit bureau, those having stellar credit ratings are paying an average 10.37% to finance a new car, truck or SUV.
However, savvy – and credit-worthy – shoppers can take advantage of what is a suddenly a plethora of cut-rate financing programs being offered by automakers’ captive financing divisions as part of most brands’ year-end sales. Rates as low as 0.9%-2.9% are prevalent, with a substantial number of models being offered with 0% financing this month with loan lengths as long as 72 months. We found 47 such offers on both 2024 and 2025 vehicles and we’re listing them below. As with the biggest year-end rebates, many 0% loan deals are on full electric vehicles.
In a separate post we ran through all the models being offered with generous cash rebates at what is historically the best time of the year to buy a new vehicle. Dealerships are typically going all out to move the metal, both to meet year-end quotas and to winnow down excess inventory, especially of what are now last year’s models. The week ahead should yield the best deals, with Christmas Eve and especially New Year’s Eve being the optimal days to go car shopping.
For some buyers, especially those looking to get behind the wheel of a costly full-size pickup truck or luxury car, choosing a low-interest rate instead of a modest cash rebate can often be the better deal. For example, a buyer taking out a $50,000 loan for 60 months at the aforementioned 10.37% would pay $14,289 in interest over the life of the loan, according to the auto loan calculator at bankrate.com. Score a 2.9% promotional rate and that amount drops to $3,773. Take advantage of 0% financing and the interest paid is, well, zero.
But there is a catch to automakers’ cut-rate loan promotions, and it refers to the familiar catchphrase, “for well-qualified buyers.” That means having a prime credit score, among other favorable factors. Lenders consider applicants having lower credit scores to be riskier than those having top ratings, which means they’ll typically be charged higher financing rates.
Lenders evaluate an applicant’s creditworthiness based in large part on his or her “FICO” score, which is created and curated by the Fair Issac Corp. FICO scores are largely based on a person’s payment history and outstanding balances, among other factors. They range from a rock bottom 300 to a maximum of 850. In fact, most auto lenders depend on an industry-specific version of the FICO Score tailored to be a better predictor of a borrower’s ability to pay a car loan on time. While standards can vary from one financing source to another, the higher the FICO score, the better chance there is of qualifying for a promotional interest rate.
According to FICO, top-tier borrowers have a score of 720 and above, with those at 690-719 coming in at a close second. Those having lower scores are considered “subprime,” and will be asked to pay what could be a considerably higher interest rate. Those having the lowest credit scores may be denied a loan altogether.
These Are The New Vehicles Being Offered Right Now With 0% Financing
- 2024 Acura ZDX: 0% for 72 months
- 2024 Chevrolet Blazer EV: 0% for 60 months plus $750 credit on a GM Charger
- 2024 Chevrolet Equinox EV: 0% for 60 months plus $750 credit on a GM Charger
- 2024 Chevrolet Silverado EV: 0% for 60 months plus $750 credit on a GM Charger
- 2025 Chevrolet Equinox: 0% for 36 months
- 2024 Chrysler Pacifica Plug-In Hybrid: 0% for 72 months
- 2024 GMC Sierra 1500 Crew Cab (6.2L): 0% for 36 months
- 2024 Honda Prologue: 0% for 60 months
- 2024 Hyundai Ioniq 5: 0% for 60 months
- 2024 Hyundai Ioniq 6: 0% for 60 months
- 2025 Hyundai Ioniq 6: 0% for 60 months
- 2024 Hyundai Tucson: 0% for 48 months
- 2025 Hyundai Tucson: 0% for 48 months
- 2024 Hyundai Tucson Hybrid: 0% for 48 months
- 2025 Hyundai Tucson Hybrid: 0% for 48 months
- 2024 Hyundai Santa Fe: 0% for 48 months
- 2025 Hyundai Santa Fe: 0% for 48 months
- 2024 Jeep Wagoneer S: 0% for 72 months
- 2024 Jeep Grand Cherokee: 0% for 36 months
- 2024 Jeep Grand Cherokee 4xe: 0% for 72 months
- 2024 Jeep Wrangler: 0% for 36 months
- 2024 Jeep Wrangler 4xe: 0% for 72 months
- 2024 Jeep Gladiator: 0% for 36 months
- 2024 Jeep Compass: 0% for 36 months
- 2024 Kia Sportage: 0% for 48 months
- 2024 Kia Sorento: 0% for 48 months
- 2024 Kia EV6: 0% for 72 months
- 2024 Kia Niro EV: 0% for 60 months
- 2024 Kia EV9: 0% for 72 months
- 2024 Lexus RZ: 0% for 48 months
- 2024 Mazda3: 0% for 36 months
- 2025 Mazda3: 0% for 36 months
- 2024 Mazda CX-30: 0% for 36 months
- 2024 Mazda CX-5: 0% for 36 months
- 2024 Mazda MX-5 Miata: 0% for 36 months
- 2024 Mitsubishi Eclipse Cross: 0% for 48 months
- 2024 Mitsubishi Outlander: 0% for 48 months
- 2024 Mitsubishi Outlander PHEV: 0% for 48 months
- 2024 Nissan Ariya: 0% for 72 months
- 2024 Nissan Pathfinder: 0% for 36 months
- 2024 Nissan Rogue: 0% for 60 months
- 2024 Nissan Titan: 0% for 60 months
- 2024 Nissan Titan XD: 0% for 60 months
- 2024 Subaru Solterra: 0% for 72 months
- 2024 Toyota bZ4X: 0% for 72 months
- 2024 Volkswagen Tiguan: 0% for 60 months
- 2024 Volkswagen ID.4: 0% for 72 months
Read the full article here
