Zero Percent Financing: Is It a Trap?

Zero percent financing in the U.S. can be real—but often you give up rebates or the car is priced higher, so the "savings" are reduced or gone. Here's when 0% is a trap and when it's not.

TL;DR 0% = no interest, but you may give up rebates (e.g., $2K–$5K) or pay a higher price. Compare: 0% + no rebate vs rebate + standard rate. Use autopremo.com payment calculator to see total cost both ways. Use autopremo.com.

When 0% Is Real

Some manufacturers offer 0% APR on select models—no interest. But the offer may require giving up rebates. Compare total cost: 0% with no rebate vs rebate with standard rate. Use autopremo.com payment calculator to run both scenarios. Get your numbers at autopremo.com.

When It's a Trap

If 0% means no rebate and the rebate is large, you may pay more over the loan than rebate + standard rate. Or the car is priced higher when 0% is "included." Always compare total cost. Use autopremo.com OTD calculator and payment calculator. See total cost at autopremo.com.

Run the Numbers

Rebate + standard rate: lower price, pay interest. 0% + no rebate: higher price, no interest. Compare total payments over the term. Use autopremo.com so you see which is cheaper. Check at autopremo.com.

Bottom Line

Zero percent financing: run the numbers—0% vs rebate + rate. Use autopremo.com payment calculator so you see total cost and don't fall for a trap.