Best 0 Financing Car Deals in Canada

Best 0 Financing Car Deals in Canada

Own your dream car and pay zero interest with 0 Financing Car Deals in Canada. These deals are 100% legit and are a dream sight for anyone looking to get a car in Canada.

0 financing car deals in Canada are car loans that allow Canadians to own cars while paying zero interest. This type of deal is only available at a dealer shop, as it’s a means of clearing out their inventory.

You can get 0 financing cars at dealerships for Chevrolet, Ford, Mitsubishi, GMC, Audi, Cadillac, Subaru, and BMW car brands.

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There’s a lot to know about 0 financing car deals in Canada if you want to get your car through this special deal. This article covers the car brands that provide this special deal, how to get one, and other useful information.

What are 0 financing car deals

0 financing car deals are a unique method of borrowing money to purchase cars without worrying about financing fees and interest. It’s like taking a car home on a loan without worrying about interest. Even though you’ll pay for the car over many months, there’ll be no interest to worry about.

A 0 financing car deal is also a dealership’s method of selling out more cars. They give their customers the vehicle on a loan, and the customer purchases it. It’s just like a regular car sale; the only difference is that the cash is received over a more extended period.

Contrary to what the name might suggest, 0 financing car deals in Canada don’t mean you get zero interest.

It means that the interest you’ll be paying on the car loan is so low that it might as well be nothing. When you find such car deals in Canada, you might have to pay up to 4% interest to drive that car home.

Benefits of 0 financing car deals

Purchasing your dream car with zero interest comes with many perks, and some of them are shown below:

Zero interest

This is the most crucial perk of 0 financing cars. With this advantage, it’ll be like you bought the car in one go and never took a loan. Zero interest can also save you lots of money that would have been spent on a regular loan.

Faster repayments

Since there’s no interest to worry about, 0 car finance deals are easier to pay off. That’s because the only thing you have to worry about is the cost of the car.

Luxury upgrades are much more easily available

Cars with upgrades like a reverse camera, a sunroof, ceramic brakes, and fog lights are more costly than those without. As such, they’re difficult to acquire. With this car deal, however, you’ll be able to acquire these cars and pay for them in time.

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Downsides of 0 financing car deals

There are a few downsides to getting a car loan with zero interest, and you’ll find them below:

Qualification is difficult

As 0 financing offers don’t see the dealership making much extra money, they’re careful about who gets such deals. You’ll need a stellar credit score (up to 700) and good credit information. This is the lowest criteria you’ll need to meet before the dealership can trust you with their car.

This type of car deal is only available at a dealership

Car deals with zero interest can only be gotten at a dealership, as their only profit comes from selling the vehicle. You won’t find such deals at any financial institution, as they stand to gain nothing from them.

Car choices are limited

A car dealership rarely puts their best vehicles up for 0 car finance deals. They only do this with vehicles that they want to get rid of. Hence, you’ll only find such deals on a limited selection of cars.

Monthly payments are usually high

0 finance offers come with a short term, as the car dealership wants the customers to pay them back as soon as possible. As such, the monthly payments are usually high to ensure this happens.

Car prices may be higher than usual

Sometimes, the cost at which you’ll get a car for zero-interest financing might be more than the typical cost. Many car dealerships do this to compensate for the fact that you won’t pay interest on the purchase.

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Car brands offering 0 financing car deals in Canada

Banks and other financing institutions are the last place you can expect to get 0 car finance. This would be a losing deal for these institutions, as they will gain little from the transaction.

Hence, you’re more likely to get the best 0 financing car deals in Canada at a dealership. Even though they won’t make much from the loan, you’ll be purchasing one of their cars in the end. Below are some car dealerships that offer this kind of car loan in Canada.

Car BrandVehicleAPR (Annual Percentage Rate)Loan Term
FordF-1500.99%60 months
ChevroletSilverado 1500 (without the High Country Trims and ZR2)0.99%60 months
GMCSierra 1500 (without the Denali and Denali Ultimate Trims and AT4X)0.99%60 months
Ford2023 Escape1.99%60 months
Subaru2023 BRZ2.99%24 months
Ford2024 Edge2.99%72 months
Mitsubishi2024 Mirage2.99%Undisclosed
Mitsubishi2023 and 2024 RVR2.99%Undisclosed
Mitsubishi2024 Eclipse Cross2.99%Undisclosed
Audi2023 A43.48%60 months
Cadillac2023 CT43.49%60 months
BMW2022 X5 M50i3.49%24 to 60 months
Cadillac2023 CT53.49%60 months
Audi2023 Q73.98%60 months
Audi2023 A5 Coupé3.98%60 months
Ford2023 Bronco Sport3.99%72 months
BMW2022 X4 M40i3.99%24 to 60 months
Subaru2023 WRX4.49%24 months
Subaru2023 Solterra4.49%24 months
Subaru2024 Impreza4.49%24 months
Subaru2024 Outback4.49%24 months
Audi2023 Q54.98%60 months
Audi2023 A3 Sedan4.98%60 months
GMC2023 Acadia4.99%48 months
Buick2023 Envision4.99%48 months
Chevrolet2023 Blazer4.99%48 months
Buick2023 Encore GX4.99%48 months
Ford2023 Explorer4.99%72 months
Buick2023 Enclave4.99%48 months

How do you apply for 0 financing car deals in Canada

0 financing car deals in Canada are legit, but the frustrating thing about them is that it takes a lot of work to get one. Hence, in this section, you’ll see the correct method to apply for this type of car deal.

If you’ve decided to apply for the 0 financing car deals in Canada, you need a high credit score. You must first ensure that you have at least 700 as your credit score before considering zero-financing car deals.

Next is to search for who has 0 financing right now in Canada. This would have been lots of research, but you’re in luck as this article has all you need.

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Hence, you must compare the offers below to ensure you get a good deal. Take note of their interest rates, the amount you’ll need to pay each month, and the car you’ll be getting. After this, a visit to the dealership is in order.

When making the trip, go with your credit information and proof of your monthly income. This provides the necessary assurance that the dealer needs to be sure that you can pay back the loan. Remember to negotiate for a reasonable price when getting your 0 APR car deals in Canada.

Things to consider when applying for 0 financing car deals in Canada

Sometimes, 0 financing car deals in Canada might be too good to be true. While we’ve agreed that these car deals are a steal, this doesn’t change the fact that some can be intentionally misleading. Hence, we’ve put together a list of things that you need to check to ensure that you’re not getting scammed.

The actual cost of the vehicle

You shouldn’t ignore the presence of your local dealerships just because you’ve come across a 0 financing offer. Some of these car deals cost far more than what your dealership is offering for the same vehicle. Hence, you should always check with your local car dealers to ensure you get a good deal.

Poor customer reviews

The internet has made it easy for Canadians to avoid horrible shopping experiences by making reviews possible. So, you must check all online reviews about a car dealership before taking their 0 financing car. This will tell you the ordeals of past customers so you can be better prepared.

If a dealership has generally poor reviews or numerous customer complaints, you should avoid them. The best choices are those that have mostly positive reviews from Canadians.

Impossible terms

A 0 financing agreement can only be received by Canadians with outstanding credit scores. So, if a dealership tells you your credit scores don’t matter for their loan, you should watch out. There’s a high chance that you’re about to be scammed.

0 financing contracts that are only available for a short period

The terms of a 0 financing contract should stay the same from the beginning of the loan until the end. So, stay away from any deals that offer 0 financing for only a short period and start demanding interest later on.

Take the car for a test drive

Car dealerships know that 0 financing offers are well-sought by all Canadians, so some shady dealers take advantage of that. Hence, you must take the car out for a test drive to ensure there’s nothing wrong with it.

Most dealerships should agree to this. If there’s anyone that backs out or offers flimsy excuses, then you can be sure that something is wrong somewhere.

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Alternative car loans to 0 financing car deals in Canada

All hope isn’t lost just because you couldn’t qualify for a zero-interest car deal. Below are some interesting alternatives that’ll still give you your dream car.

Loans Canada car loans

This is a Canadian platform that allows you to compare multiple lenders and choose the best one. You can also use this site to find lenders in your province or in all areas of Canada.

Before Canadians can request a car loan from Loans Canada, they’ll need a minimum monthly income of $1,800. They’ll also need to have been employed for at least three months.

Features of Loans Canada car loans

  • Their Average loan period is 3 to 60 months.
  • The average loan amount from this institution is between $500 to $35,000.
  • The average APR for this institution ranges from 0.99% to 49.96%.
  • There is a minimum credit score of 300 for receiving a loan from Loans Canada.
  • The services of this lender are available in all provinces in Canada.

Pros of Loans Canada car loans

  • Allows Canadians to compare offers from multiple lenders.
  • It’s easy to gain approval for car loans through this loan site.
  • Loan approvals for this online platform are swift.
  • People with bad credit scores can also acquire car loans from Loans Canada.

Cons of Loans Canada car loans

  • Canadians with bad credit scores get higher interest rates for their car loans.

Clutch car loans

This is a financial institution that can only serve Canadian residents in Nova Scotia and Ontario. It’s your best choice when you’re looking to purchase used cars.

Canadians who wish to request a car loan from Clutch need to have a good financial record. They should only have at most one case of bankruptcy. People who need this car loan also need to have been employed for at least three months in Canada.

Features of Clutch car loans

  • Loans from Clutch are usually given within a period of 12 to 96 months.
  • Loans from Clutch have an average APR of 8.49%.
  • While the loans from this financial institution have no maximum, the minimum Canadians can request is $7,500.
  • The minimum credit score

Pros of Clutch car loans

  • Canadians can purchase a car from BMO and return it after 750 km or within 10 days if unsatisfied.
  • Simple registration process.
  • Numerous credit rates are eligible for Canadians.

Cons of Clutch car loans

  • Canadians cannot purchase new cars from Clutch.
  • If you’ve got a low credit score, you’ll pay higher interest rates.

LoanConnect car loan

This is another online platform that doesn’t actually give car loans. Instead, it matches Canadians with lenders who provide the types of car loans they need. LoanConnect offers a fast preapproval procedure, ensuring customers can get their loans within 24 hours.

Features of LoanConnect car loan

  • The average loan amount from LoanConnect is between $500 and $50,000.
  • Canadians require a minimum credit score of 50 to receive a loan from this financial institution.
  • The APR for LoanConnect loans ranges from 6.99% to 46.96%.
  • The average loan term for this firm is 72 to 84 months.
  • LoanConnect’s services are available to Canadians in all provinces.

Pros of LoanConnect car loan

  • LoanConnect allows Canadians with all types of credit scores to access loans.
  • There are no collateral requirements to receive a loan.
  • The loan application procedure is easy.
  • LoanConnect requirements for receiving a LoanConnect loan are low.
  • There are many loan choices to choose from.

Cons of LoanConnect car loan

  • Canadians with bad credit scores must pay high-interest rates to receive loans.
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CarDoor car loans

This is one of the few loan institutions that is meant for only Ontario residents. It takes customer service a step further and delivers the customer’s cars directly to them.

Canadians can only receive a CarDoor car loan when they’ve been employed for at least 3 months. The financial information of individuals who want to request this car loan should have a maximum of one case of bankruptcy.

Features of CarDoor car loans

  • The average loan period for this institution is 12 to 96 months.
  • CarDoor car loans don’t have a maximum loan amount. However, the minimum that Canadians can borrow is $500.
  • The APR rates at this institution start at 7.99%.

Pros of CarDoor car loans

  • Canadians can use the 14-day money-back guarantee to return any unsatisfying purchase.
  • CarDoor also allows Canadians to trade their old cars for new ones.
  • The entire loan application process is online.

Cons of CarDoor car loans

  • This online platform only offers its services in Ontario.

TD Bank car loans

This is a Canadian bank that’s in partnership with over 4,500 dealerships. With this, TD Bank can finance an extensive range of vehicles, including trucks, cars, power sport vehicles, and marine vehicles.

Features of TD Bank car loans

  • TD Bank has an average loan period of 84 months.
  • TD Bank loans range from $7,500 to $50,000.
  • This financial institution uses a varied interest rate for its car loans.
  • Canadians from all provinces can use the services of TD Bank.

Pros of TD Bank car loans

  • Canadians can use the TD Bank app to get their loan.
  • TD Bank offers many vehicles to choose from.
  • Loans from TD are long-term offers.
  • Canadians don’t need to make a down payment before they can receive a loan.
  • Loans from TD are flexible, allowing Canadians to get extensions if they feel like they can’t pay them off.

Cons of TD Bank car loans

  • Sometimes, online applications for TD Bank car loans are not possible.

How do you get a good car deal without 0 financing car deals in Canada?

If 0 car finance deals don’t work out, you can use the options below to go home with a good car.

Hunt for special offers

If you can afford to wait, you should hold on until a special offer comes up at a dealership. This can be a cash rebate, an employee pricing event, or an inventory-cleaning event. During these periods, you can negotiate a good deal on the cars available.

Improve your credit score

A popular route for Canadians who can’t qualify for 0 financing is to get a typical car loan. However, the interest on standard car loans can be very high if you have a bad credit score. As such, you should focus on increasing your credit score before searching for a good car loan.

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Look for the next best Interest rates among car dealers

If the 0 financing offer doesn’t work, you can look for the next best interest rate. While the interest rates that you’ll find won’t be at 0%, you should be able to get something manageable.

This doesn’t mean you should settle for the first interest rate that you come across, though. You can take your time to search for a good deal from the local car dealers in your area.

Get a used vehicle

If your funds can’t afford a new vehicle on 0 finance, a used car might satisfy your needs. Don’t look down on used vehicles, as some are in like-new condition. Purchasing a used car would be easier on your wallet, and you can even negotiate a good deal.

When purchasing used vehicles, however, you should check their mileage. This way, you’ll be sure you’re buying a car that hasn’t been pushed to the end of its active life.

Can I get 0 financing cars Ontario deals in other provinces in Canada?

No, you can get the 0 financing cars Ontario deals in other regions of Canada. This is because the deals advertised by car dealers are dependent on where you live. So, an agreement in Ontario will be different from a similar one in Vancouver.

Final thoughts

0 financing car deals in Canada allow you to get your dream car without worrying about interest. Of course, before you can drive away, you’ll need to make a suitable down payment. The amount here depends on the learners.

While 0 financing car deals in Canada might seem like a dream come true, you must keep a few things in mind. First, you need a good credit score, and the loan structure cannot be changed. This also means that the price for that car will be largely unchanged, and you won’t be able to negotiate.

If you discover that you don’t qualify for 0 financing deals on cars, that shouldn’t discourage you from visiting a dealership. You can always communicate with them and see if it’s possible to get the car at a higher interest rate.

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FAQs about 0 financing car deals in Canada

Is it possible to get 0 financing car deals in Canada with a bad credit score?

No, it's impossible to get this kind of car deal if your credit score is terrible. Car dealers with 0 financing offers are already taking significant risks to release cars to customers with no added interest. Hence, they'll need to ensure the customers can pay the loan.

Can used cars be acquired with 0 financing car deals?

No, used cars are not usually acquired with a 0 financing offer, as such offers are meant for new vehicles only. If you want a used car, you must negotiate a deal with car dealerships for a higher interest rate. Apart from the car dealerships, you can also visit banks and other financial institutions.

Are 0 financing car deals in Canada always available?

No, such car deals are always in short supply, as they are always highly sought after. So, they're always gone after a short while. The car shortage and lending rate hikes in Canada have also made such car deals challenging to find.

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November 14, 2023
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