Can You Get 0% Interest on a New Car? Who Qualifies and the Catch

Yes, a new car can come with a 0% APR offer, but it is a manufacturer incentive and not a rate every buyer receives. The FTC says a low advertised APR might apply only to “highly” or “well” qualified borrowers, and the CFPB says special financing offers may not be available to everyone. This guide covers who qualifies according to federal consumer pages, how 0% differs from a cash rebate, and which questions to get answered in writing. It is general information, not financial advice, and offers change.

How 0% APR Financing Actually Works

A 0% APR offer is a special financing program tied to particular new vehicles. The FTC guide to financing or leasing a car lists manufacturer incentives, such as lower finance rates or cash back on certain makes or models, among the things a dealer may offer. The lender can be the makerThe lender is usually the maker's own finance arm#39;s own finance arm: the Hyundai USA offers page, for example, says its APR financing figures apply to buyers who purchase through Hyundai Motor Finance from a participating dealer.

APR is not the same as the interest rate. According to the CFPB explanation of interest rate versus APR, the APR is the interest rate plus additional fees charged by the lender. A 0% APR therefore means the quoted yearly cost of the credit is zero. It does not mean the car is free of other costs: price, taxes, title and registration fees, add-ons and dealer fees sit outside the rate. The Truth in Lending Act requires lenders to disclose the APR before you finalize the loan, per the CFPB, so compare that paper, not the advertisement.

What the official pages say about 0% offers

Every row comes from a page read in full on October 14, 2026. Older pages are general guidance, not a current offer.

Source	What it says about 0% offers	Page date shown
FTC, Financing or Leasing a Car	Manufacturer incentives can include lower finance rates. Those rates generally are not negotiable and may be limited by your credit history. Programs may be limited to certain cars or require a larger down payment or shorter contract.	July 2022
FTC, Car Dealer Ads and Promotions	A low advertised APR might apply only to highly or well qualified borrowers, meaning high credit scores.	July 2022
CFPB, What things can I negotiate	Manufacturer incentives such as cash rebates or special financing may not be available to everyone.	Reviewed Aug 28, 2023
CFPB, Interest rate versus APR	APR is the interest rate plus lender fees. Compare APRs to APRs, not to interest rates.	Reviewed Aug 28, 2026
CFPB, Truth-in-Lending disclosure	Disclosures cover APR, finance charge, amount financed and total of payments. Request it before you sign.	Reviewed Mar 8, 2024
Hyundai USA offers page	Calculator text says APR figures are only for well qualified buyers through Hyundai Motor Finance and that not all customers will qualify.	No date shown

What Credit Score Do You Need to Qualify?

No score is published on any of the official pages read for this article, so any exact cutoff quoted elsewhere is not something we can confirm. The sources are consistent on the idea: the FTC describes the best advertised rates as reserved for highly or well qualified borrowers with high credit scores, and says manufacturer programs may require a strong credit rating. Each lender defines that phrase for itself.

Credit score is one input. The CFPB lists the factors lenders generally use: credit scores and history, income and debts, loan amount, loan term, down payment relative to the vehicle's value, and the type of vehicle. It also says lenders are not required to offer you the best rate.

Three steps follow. First, review your credit reports before shopping; the FTC points to AnnualCreditReport.com for a free copy. Second, get preapproved by a bank or credit union so you have a real rate to compare; see how to get preapproved for a car loan. Third, keep lender shopping inside a short window: the CFPB says credit checks within 14 to 45 days count as one inquiry. Background: does applying for a car loan hurt your credit.

Which Automakers Are Offering 0% APR Right Now

We are not listing current 0% offers by brand, deliberately. Offers change, and the pages that would let us state a model, term and end date were not readable for this update. The Hyundai USA offers page, read October 14, 2026, asks for a city or ZIP code before it shows dealers, and its offer cards refer to offers available in your area. The Toyota, Honda, Ford, GM and Kia offers pages were not read, so nothing here describes what those makers offer.

Use the maker's own offers page for your ZIP code, then get the dealer's written confirmation. Capture these details, because each can decide whether you qualify.

Detail on the offer	Why it matters	Basis
Exact model, year and trim	Offers can apply only to certain cars	FTC
Term in months	Programs may require a shorter contract	FTC
End date and your region	Offers vary by area and change	Hyundai USA page
Who the lender is	A maker's finance arm may run it, via participating dealers	Hyundai USA page
The well qualified conditions	Decides whether the rate is yours; ask what it means	FTC, Hyundai USA page
Down payment requirement	Some programs need a larger down payment	FTC

0% APR vs. Cash Rebate: What to Compare

Makers advertise both cash back and special financing, and the sources read here do not say a buyer can always take both. The CFPB page on what you can negotiate treats cash rebates and special financing as separate incentives that may not be available to everyone, and the FTC says not to assume a rebate is already included in the price you are quoted. So ask, in writing, whether the rebate and the special rate can be combined or whether it is one or the other.

We give no break-even rate or dollar figure, because the answer depends on price, term, amount financed and the rate you could get elsewhere. Use this checklist and let the written numbers decide.

Step	What to get in writing	Why
1	Out-the-door price with the rebate, and again without it	FTC: get it in writing before talking financing
2	Whether the rebate and special APR can be combined	CFPB: offers may not be available to everyone
3	APR, term and amount financed for the special offer	FTC: compare these three on every offer
4	The same three figures from your own preapproval	Shows what the dealer is competing against
5	Total of payments and finance charge for each version	Shown in the Truth in Lending disclosure
6	Any larger down payment or shorter term the rate requires	FTC: programs may carry such requirements

Then compare the total of payments, not the monthly payment. The FTC warns that low monthly payments often need longer terms and higher interest, which raises overall cost. To run your own numbers, see how to calculate a car payment with interest.

Trade-Ins, Loan Length and Negative Equity

The FTC says to wait to discuss a trade-in until you have negotiated the best price for the new car. If you owe more than the car is worth, that is negative equity, and the FTC says it may increase the amount you borrow, the length of the agreement or the monthly payment. The CFPB adds that a dealer may offer to roll in the old balance, which adds costs to the new loan.

Term matters too. The CFPB says a shorter term reduces total loan cost, while a longer one lowers the monthly payment but means more interest and a longer period of possible negative equity. Because the FTC says special programs may require a shorter contract, the term attached to a 0% offer can differ from the one you planned.

Dealer Markup on Financing: Where 0% Differs

Two things get called dealer markup. One is the vehicle price, covered in the mark-up on a new car and negotiating a new car price. The other is the rate on a dealer-arranged loan. The CFPB says the dealer receives a quote called the buy rate and presents a rate that is the buy rate plus additional interest that compensates the dealer; the FTC says the APR you negotiate usually includes such an amount.

That is the contrast with a maker incentive. The FTC says discounted manufacturer rates generally are not negotiable, while the APR on an ordinary dealer-arranged loan can be. See also interest rate versus APR on a car loan.

Common 0% Financing Mistakes

Mistake	Why it costs you	What the sources say
Comparing only the monthly payment	A lower payment can hide a longer term	FTC: know your total cost
Assuming a rebate is in the price	You may not get the discount you expected	FTC: do not assume it is included
Skipping a preapproval	No benchmark for the dealer offer	FTC and CFPB
Haggling over the promo rate	Spends effort on something generally fixed	FTC: generally not negotiable
Rolling in negative equity	Raises the amount borrowed	FTC and CFPB
Signing before reading the disclosure	Contract may not match the quote	CFPB: request TILA disclosure first

Questions to Get Answered in Writing

For any low-rate ad, the FTC suggests asking, and getting written answers to:

1. Is the advertised offer limited to certain types of borrowers?
2. Is a certain down payment required, and what are the terms for bigger loans with a smaller down payment?
3. Are there other fees or payments?
4. What is the APR, and what is the total you will pay for the loan?

Add: can the rebate be combined with the rate, which trims and terms qualify, when the offer ends, and is approval final. The FTC says that if the dealer is still working on approval, the deal is not final. If something changes after signing, see cancelling a car loan after signing. Before you sign, the CFPB says TILA requires disclosures of the APR, finance charge, amount financed and total of payments; on a 0% deal, check that the finance charge line matches what was advertised.

Frequently Asked Questions

Can You Get 0% Financing on New Cars?

Yes, manufacturers sometimes offer 0% APR on certain new models, but not to everyone. The FTC says a low advertised APR might apply only to highly or well qualified borrowers, and offers may be limited to certain cars, terms or down payments. Check the maker offers page for your ZIP code.

What Credit Score Do I Need for 0% APR?

The official pages read for this article do not publish a score. The FTC describes the rate as aimed at highly or well qualified borrowers with high credit scores, and each lender defines that for itself. Ask what well qualified means for the specific offer and get the answer in writing.

Is There a Catch With 0% APR on Cars?

The catch is usually the conditions. The FTC says the rate may be limited to certain cars, require a larger down payment or shorter contract, and need a strong credit rating. Confirm whether a rebate can be combined with it, and compare total cost, not just the monthly payment.

Is 0% APR Always Better Than a Cash Rebate?

The sources do not say so. It depends on the price, term, amount financed and the rate you could get elsewhere. Get the out-the-door price both ways, compare the total of payments, and use a preapproval from a bank or credit union as the benchmark.

Which Car Brands Offer 0% Financing Right Now?

We cannot confirm a current list. Offers change and vary by region, model and term, and most maker offers pages were not read for this update. Check each maker offers page with your ZIP code, then ask the dealer to confirm the model, term and end date in writing.

Can You Negotiate the Price on a 0% APR Deal?

You can negotiate the car price. The FTC says discounted manufacturer finance rates generally are not negotiable, but price, trade-in and add-ons are separate. Get the out-the-door price in writing before discussing financing, and settle the price before discussing a trade-in.

Sources and What We Could Not Verify

Facts here come from two FTC pages (July 2022), four CFPB auto loan pages (reviews dated 2023 to 2026) and the Hyundai USA offers page, all read in full on October 14, 2026. Not read: current offer pages for Toyota, Honda, Ford, GM and Kia, and the Regulation Z advertising rules, so no claim is made about them. Offers change; verify before you sign. This is general information, not financial advice.