Anyone have a 0% interest auto loan?

[Anonymous]

I've been searching the forums for an answer, but can't find a clear answer. I'm in the market for a new car (looking at the 2022 Hyundai Tuscon hybrid) and noticed they are offering 0% financing for 60 months. This is my first time buying a new car as I took over my husband's old car when we got married and sold mine. I figured their had to be a catch so looked up credit requirements and the idea of what 'well qualified buyer' means is kind of all over the place. I see some people saying credit score needs to be above 700, some say 740, and some say it needs to be above 800. I'm a bit overwhelmed, but don't want to go in unprepared. We will probably both be on the loan as my husband has higher income and longer credit history. Has anyone been approved for the 0% interest and how easy was that process?

Other info about us:

Me - credit score of 749

Him - credit score of 760

Combined income of $115,000 annual (both been with our companies for several years)

Current credit card balances $7,500 (but this is out of $112,000 credit limit)

Mortgage of $1,610 monthly, but otherwise no loans

Current car's trade in value is around $8,500-$9,500 (car loan paid off with no late payments)

Also, new cars are in such short supply right now! Took me forever to finally find one that is arriving in a few weeks so I want to be extra prepared once it arrives from the manufacturer.

[disdreamin]

I've had a number of 0% loans and have never had issues getting them. My SO just got one without me on the loan and had no problem getting approved. Our credit is pretty decent, so I can't tell you what the lower limit would be for approvals.

The first piece of advice I would offer you is to work out the numbers and put money down on the vehicle before it arrives if you are certain it's the right vehicle for you. Most things coming into dealerships back in August (the last time I was shopping for a new vehicle) were sold before they ever hit the lot, and many before they even made it to the truck. Work the number you want for your trade and what you're willing to pay for the new vehicle and get your name on the vehicle you want as soon as possible.

Do your trade-in estimate carefully as many things are worth FAR more currently than they were a year ago. My car a year ago was about $15k - I ran the numbers earlier in the week and the same vehicle, a year older and with more miles on it, now comes out about $22-24k. Run the numbers on many different calculators (kbb, edmunds, carvana, vroom, etc) and make sure you know what it's worth. This summer I traded in a 7 year old vehicle with a check engine light and an accident in its carfax history for ~70% of what is cost new. Your trade-in may surprise you.

[Anonymous]

I did put down a $500 deposit on the vehicle that is in transit so it is mine! I just need to finalize all the financing once it comes in in about a month. If I don't get that 0% interest I will be bummed so I'm nervously searching the internet. 

Thanks for the good tips!

[LakeLife]

With those data points you should be fine on 0% financing.  

[sccredit]

As others have said with your data points 0% should be no issue.

[Anonymous]

I think typically a score needs to be in that sweet spot of 760^ for the lowest/best rates but it will also depend on that indivisuals profile and what's in it, I think for me an 800 score helps offset my rather short credit hystory. In addtion to not having any debt except a $500 balance on a CC, and until that new auto loan balance of $16K hits my file. lol

[Loquat]

It'll come down to a combination of score, debt to income, and loan to value. Neither of these need to be perfect to qualify for 0%...but they definitely need to be good. Obtaining 0% isn't that hard but I don't want to give the impression that it's super easy either.

I don't think you'll have a problem and even if you don't get 0% I think you'll still be fine even if you have to reach out to a credit union a get something in the 0.99-1.99% rate.