Assume you go in to buy this year’s Honda Accord sedan at a base model price of about $21,000 plus car transport fees . You will get 0% financing for a five-year loan period at some dealerships. What is that than the average car financing rate that goes for something between 4% and 6%? It works out to something in the region of $3000 cheaper in tangible dollar values when you pick the 0% rate. The car dealer’s auto loan always comes from the car manufacturer.
The manufacturer used to make quite a bit selling you your car as well as financing it. The vehicle manufacturers have just decided to sacrifice what they used to make on the financing end just to have the ability to stay in business. They’re subsidizing your car (they’re losing about $3000 on each car they finance you by doing this), and there is no reason why you shouldn’t take advantage of it.