Posts: 20
Registered: ‎08-06-2012

Re: 0% financing. What's the catch?

Nice info that I picked up.


I never cared to evaluate the 0% financing contract term and price because I knew I wouldn't qualify.


Sept 2012: TU 682 ; EQ625 ; EX 636

NFCU Secured nRewards $600
CapOne Platinum $500
Macys $100
Valued Member
Posts: 35
Registered: ‎08-03-2012

Re: 0% financing. What's the catch?

I recently purchased a Toyota for 0% financing.  The dealer told me a FICO score 650 and above qualified for 0%.  Also, I consulted Consumer Reports on what I should pay for the model I was interested in - I payed exactly what was fair.  This is a great time of year to buy and get the deals on the 2012 closeouts.  Of course, the finance guy did the hard sell on all the extras that would jack up the payment.  I said no thanks to all of that and walked away with the car I wanted for the right price and the right payment.  Best wishes with the new baby and the new car.

BofA AAA Visa 16K, PNC Flex Visa 15.9K, BofA Cash Rewards 6K, Chase Southwest Visa 12K, Cap One Quicksilver 3K
New Contributor
Posts: 57
Registered: ‎03-31-2012

Re: 0% financing. What's the catch?

One "catch" that hasn't been mentioned yet:  Some lenders will only allow for 0% for very short loan terms, like 36 - 48 months.  So if you think you will have a super low car payment, it won't be if you have such a short loan.  For example, if you finance a $40K loan at zero for 36 months, that's a loan payment of over $1K per month.  Sometimes a low interest rate with longer terms is gentler on the wallet.  Especially if you are on a budget. 

Posts: 13
Registered: ‎11-27-2010

Re: 0% financing. What's the catch?

Congrats!  What was the model Toyota you purchased? What state are you from?  Sounds good 650 and up qualifies for zero percent.


Frequent Contributor
Posts: 387
Registered: ‎04-02-2012

Re: 0% financing. What's the catch?

Well we got the car with ease. Her credit score is in the 700's and we got the 0% for 60 months. Payments stayed about the same.
My Wallet:
Discover It $11,000 | Chase Freedom $5,000 | AMEX BCE $3,000 | Paypal Extras Platinum $5,000 | Wells Fargo $1,000 | AMEX Zync NPSL
Frequent Contributor
Posts: 470
Registered: ‎08-14-2012

Re: 0% financing. What's the catch?

Razeus wrote:
Well we got the car with ease. Her credit score is in the 700's and we got the 0% for 60 months. Payments stayed about the same.

very nice! enjoy it! 

In my wallet: Amex PRG & Zync, Amex BCE (19.2k), Chase Freedom (5k), PSECU Visa/PSL (20k)
Current Scores: Equifax: 738 (Fako) TransUnion: 721 (Fico) Experian: 717 (Fico)
Disclaimer: I am by no means a financial advisor. My posts are based on opinion, experience, and/or knowledge.
Posts: 7,230
Registered: ‎09-16-2011

Re: 0% financing. What's the catch?

My mom got 0% from nissan. I'm hoping to get the incentive rate when I buy my next volvo... volvo doesn't do 0%... my CU does 1.7 even on used with low miles. Ive still got a few years to think about it

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!

Take the myFICO Fitness Challenge
New Contributor
Posts: 95
Registered: ‎01-03-2011

Re: 0% financing. What's the catch?

StartingOver10 wrote:

Razeus wrote:

She has a 2 door Honda Accord.  We had a baby a few months ago and we are looking at a 4 Door Camry for $27k (sticker price, we'll aim for $25k).  Her credit is good.  The current Honda is above water for $2k.

The real catch with the zero down, zero interest rate is that they won't negotiate on the price. They build in the interest rate into the price. Plus, as pointed out above, they try to stick you with each and every kind of add on they can in the finance office (extended warranty, etching etc).They get their bump from the manufacturer and you are stuck paying full retail for a new vehicle. As you can see, I'm not too keen on buying new - its a real waste of money. Just for kicks do the math on the 2012 zero interest and then do the same model for lightly used 2011 with market rate interest but the substantially lower price. You will be surprised.

Remember the new baby doesn't really know whether its a new car or not....

You are going to be having all kinds of new expenses over the next five years. Consider getting a less expensive late model used vehicle rather than a brand new one...JMO. (off soap box now)

Eh, even though the OP has purchased their car (congrats!), I'd like to contest this point, for future readers. There is absoutely nothing that says a dealer won't negotiate on the sale price of a vehicle and still not offer a mfg rate. 

Posts: 12,875
Registered: ‎04-15-2011

Re: 0% financing. What's the catch?

0% financing ensures you will buy the vehicle they have the offer on and only involves new vehicles.  Not a bad deal, but there are other options.  I bought a 3 year old $47K Cadillac with 32,000 miles on it for $10,500.   Deal just fell in my lap and I jumped on it.  Always look and weigh your options.

Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+