0% car financing in canada


Zero percent financing on vehicles has been very successful in other markets. And these other markets, such as the credit card industry, have started to adopt this. There is much research that is very interesting. It shows that around only a third of people who actually apply for 0% car financing really qualify. And only around 10% of those people that qualify get a car. This is according to the National Automobile Dealers Association.

The numbers may seem a little confusing, but then you realize one important fact. To qualify for 0% car financing, you need to have a perfect credit score. That's right, almost perfect credit!

Qualified buyers who get 0% car financing, often overpay for their vehicles because they fail to negotiate on the price. They have assumed that they are already getting the best deal available, but they are dead wrong...

If you receive 0% financing, that doesn't mean you are getting a great deal. The offers are almost always structured as 0% down or around $10,000 cash back. You might also note that the $10,000 in cash that you losing by getting the 0% option is the actual cost of borrowing! This sometimes means that the car loan rates are much higher than more traditional car loan rates. Here is an example:

Annual % Rate 0% 6.95%
Cost of Car $29 000 $29 000
Less Rebate $0 $5000
Amount of Finance $29 000 $24 988
Monthly Payment $625 $596
Total Cost $29 999 $28 608
Savings $0 $1391
* based on 48 months
* an actual car found on the internet – 2005 mid size sedan

You can take a look at the Savings at the bottom of the chart and see what option is best. Now look at the same vehicle, but this time the vehicle in is pre-owned and has 10 000 km on it. Also note that you are only qualified for new cars when it comes to 0% car financing options.

Annual % Rate 0%(new) 6.95%(pre-owned)
Cost of Car $29 000 $19 999
Less Rebate $0 N/A
Amount of Finance $29 000 $19 999
Monthly Payment $625 $478
Total Cost $29 999 $22 944
Savings $0 $7055
* based on 48 months
* actual car found on the internet – 2005 mid size sedan

Obviously you can see, the best auto loan rate is 6.95% rather than your 0% option. This shows how important it is to do research before signing up for any special deals or programs.

One highly recommended action for securing your best auto loan rate is to fill out an online car loan application. You can click on the apply now button and fill out the application quickly.

The process is for car buyers with good, bad and even no credit history. More than one dealership or lending company will then compete for your business! Which means you get to pick the best car loan rate. Now you can spend your time looking for the perfect car and not waste your time dealing with all the complexities of car financing.

Apply Now with Canada Credit Company, and get connected with a dealership who wants to build a relationship with you.


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