Best 0% APR Financing Deals For January 2022
Paying interest can quickly dampen the excitement of buying a new car. It’s like staying in a nice hotel, turning off the lights, and then hearing an army of roaches skitter across the floor.
Interest on a $25,000 car could easily cost you an extra $3,000 over 5 years.
But not to worry, many car manufacturers are offering interest-free loans for up to 84 months. That means you’ll save up to $3,000 just by choosing one of these deals instead of the typical car loan.
Let’s take a look at this month’s best 0% APR deals and how these loans work.
Table of Contents
- Best 0% APR Financing Deals Right Now (across all vehicle types)
- Our Top Pick in Each Vehicle Class & Category
- What Does 0% APR Mean When Buying a Car?
- Is 0% APR Worth It?
- Can you Get Zero Percent Financing on Used Cars?
- How to Get a 0% APR Car Loan
- All 0% Finance Deals for January 2022
- Best 0% APR Deals by Category
- Frequently Asked Questions
Best 0% APR Financing Deals Right Now (across all vehicle types)
Here are our picks for the best APR deals for the month of January. Some include bonus cash offers as well.
#1 Deal: 2022 RAM 1500
Finance Deal: 0.0% APR for 72 months plus $1,000 in bonus cash
#2 Deal: 2022 Nissan Frontier
Finance Deal: 0.0% APR for 36 months
#5 Deal: 2022 Nissan Murano
Finance Deal: 0.0% APR for 36 months plus $1,000 in bonus cash
#7 Deal: 2022 Chevrolet Traverse
Finance Deal: 0.0% APR for 72 months
#9 Deal: 2022 Kia Niro EV
Finance Deal: 0.0% APR for 60 months
Our Top Pick in Each Vehicle Class & Category
0% APR Deals on Trucks
The best way to finance a pickup truck is with zero interest if you can get it. Our top pick this month is the 2022 RAM 1500 with a deal of 0.0% APR for 72 months plus $1,000 in bonus cash.
See all our picks for the best 0 APR truck deals for January »
0% APR Deals on SUVs
Need a little extra headroom or all-wheel drive? There are several financing specials on sport utility vehicles. Our top pick this month is the 2021 Chevrolet Traverse with a deal of 0.0% APR for 72 months.
See all our picks for the best 0 APR SUV deals for January »
0% APR Deals on Luxury Vehicles
It's easier to splurge on a stylish, high-end vehicle when you don't have to pay interest. Our top pick this month is the 2021 Cadillac CT4 with a deal of 0.0% APR for 36 months plus $500 in bonus cash.
See all our picks for the best 0 APR luxury vehicle deals for January »
What Does 0% APR Mean When Buying a Car?
0 APR or zero percent financing means you pay no interest on your monthly auto loan payments which can add up to thousands of dollars saved.
When you get a car loan from a dealership or lender, they make their money by charging you interest and loan fees. These fees are factored into your monthly payment and spread out across the life of the loan.
The annual percentage rate (APR) is the percent of all your payments over a year that goes towards interest and fees. The higher the APR, the higher your monthly payment.
If a dealership offers a promotional 0% APR loan, they are waiving their loan fees and interest as an incentive to get you to buy a car. 100% of every payment you make will be applied to your loan principal.
Is 0% APR Worth It?
0% APR financing can save you a lot of money on your car purchase since you're not paying any interest on the car loan. The average price of a car is around $36,000 and with 0% financing over 60 months, monthly payments come out to around $600. If we applied the average APR of 4.96%, the monthly payment on the vehicle rises to $678 a month, or $4,700 in interest payments over 60 months.
Is 0% a good deal?
0% APR offers can save you thousands of dollars in interest payments over the life of the car loan, but you should be wary of the reason the dealer is offering them. If you read the fine print, you'll realize that most zero APR offers will require you to be a well-qualified buyer with excellent credit and you cannot combine with other offers.
What's the catch with zero percent car loans?
While 0% APR loans can be a good deal, there’s also a catch to consider. Once the dealer gets you in the door with the zero APR loan offer, you may find that it’s more of a bait-and-switch, with the offer only applying to very specific models and packages that have limited stock available.
Dealerships can offer zero interest car loans because they make money on the sale in other ways, like a higher car price, or add-ons in the Finance Office with things like gap insurance or extended warranties. And sometimes the catch is that the low APR may only apply up to a certain amount requiring you to make a bigger down payment else pay a higher APR for anything above the limit.
Additionally, you can often only choose either 0 APR OR cashback, not both. Learn more about choosing between low APR or cashback.
Can you Get Zero Percent Financing on Used Cars?
0 APR used car deals are rare, but not unheard of. Typically, this type of incentive is only offered on new cars. One exception is Volkswagen, which has been running 0% APR financing for 60 months on their CPO (certified pre-owned) during the COVID crisis.
Occasionally, a dealership will advertise a no-interest deal on a used vehicle, but these are very hard to find. A better approach to is focus on negotiating the sales price of the used car you want and then get competitive financing from a bank or credit union.
How to Get a 0% APR Car Loan
In most cases, low APR loans have strict requirements that can be difficult to meet. Typically, you’ll need to have excellent credit, but you must look carefully at the advertised deals to know what the qualifications are.
What credit score do you need to get 0% financing?
Lenders rarely advertise the minimum credit score to be eligible for 0% financing. However, you'll typically need at least a 700 credit score and a score above 720 will give you a better chance of being approved.
Monitor monthly incentives
Part of getting an appealing low APR car loan is to carefully monitor monthly incentives. Most manufacturers change their offers at the beginning of every month with incentives on different models.
Bookmark this page to check for the monthly updated deals, or sign up for the Car Deals Early access list at the footer of this page to get notified by email.
All 0% Finance Deals for January 2022
Below is a list of all the current 0% APR deals offered by each manufacturer right now.
|Year||Make||Model||Best Avail. APR||Length||Cash Bonus||Expiration|
|2021||Buick||Encore GX||0.00%||48 months||$250||1/31/2022|
|2022||Buick||Encore GX||0.00%||48 months||$250||1/31/2022|
|2022||GMC||Sierra 1500 Limited||0.00%||N/A||$500||1/31/2022|
|2021||Chevrolet||Silverado 1500||0.00%||48 months||1/31/2022|
|Year||Make||Model||Best Avail. APR||Length||Cash Bonus||Expiration|
|2022||Hyundai||Ioniq Hybrid||0.00%||60 months||1/31/2022|
|2022||Hyundai||Ioniq Plug-in Hybrid||0.00%||60 months||1/31/2022|
|2021||Jeep||Grand Cherokee||0.00%||48 months||$2,650||1/31/2022|
|2022||Kia||Niro EV||0.00%||60 months||1/31/2022|
|2021||Nissan||Rogue Sport||0.00%||36 months||1/31/2022|
|2021||Nissan||Titan XD||0.00%||36 months||1/31/2022|
|2022||RAM||Ram Pickup 1500||0.00%||72 months||$1,000||1/31/2022|
|2021||RAM||Ram Pickup 1500 Classic||0.00%||48 months||$2,750||1/31/2022|
These offers may vary based on location, credit score, and financing terms and are not guaranteed. So use my free service to Check Discount Car Prices to get the best prices that include current manufacturer offers and incentives.
Frequently Asked Questions
What car dealers are offering zero-percent financing?
Buick, Chevy, Hyundai, Nissan, and more.
Can you get both 0 APR and no money down?
While it would be ideal to get both, typically you cannot get both 0 APR and no money down. Most times, you will only be able to get one or the other, and it would be highly unusual for you to find them both available together.
Is there a catch to 0% APR car deals?
Sometimes APR deals are tied to buying a car at a non-negotiable price or have a short loan term like 24 or 36 months. But if you look closely, sometimes you can find good deals without a catch.
Is a 72-month car loan bad?
72 and 84-month loans are worse than shorter loans. The longer the loan term, the more you’ll end up paying in interest over the life of the loan. However, if you have 0% APR, a longer loan can be good because you’re not paying any interest at all.
What does 0 APR for 60 months mean?
Zero APR means you pay 0% interest on your car loan. 60 months is the duration of the loan (and the total number of monthly payments).
Is it better to finance a car through a bank or the dealership?
You can get a loan through dealer financing or through your bank or credit union. Go with whoever offers you the best lending terms unless getting a loan is tied to a discount on the price of a car. Learn more about financing through a bank or dealership.
Does 0% APR hurt your credit?
No, it’s just the interest rate on an auto loan and doesn’t have anything to do with your credit.