🚗 The Truth About 0% Interest Car Loans: Why They're Not What You Think

You’ve seen the ads:

“0% interest! No payments for 90 days! Get into a brand-new car today!”

Sounds like free money, right? Unfortunately, 0% interest car loans aren’t the deal of a lifetime they’re made out to be. They’re just clever marketing—and we’re here to break down how they work, what the real cost is, and what you can do instead if you want to actually save money on your auto loan.

🚨 The Myth of 0% Interest Car Loans

0% car loans do exist on paper, but they come with a major catch:

You're not getting a discount on the car—you’re just paying interest in disguise.

Here's how it works:

• The manufacturer or dealer inflates the price of the vehicle or removes potential discounts or incentives you'd otherwise qualify for.
• That extra profit is then used to “buy down” your interest rate to 0%.
• You end up paying more for the vehicle than you would have if you negotiated a better price with a standard low-interest loan.

🧾 Example: The 0% Interest Trade-Off

Let’s say you’re looking at a vehicle with:

• Cash price: $30,000
• Cash rebate: $3,000 if you pay upfront or use your own financing
• 0% financing option: Only available at full sticker price

If you take the 0% offer, you pay $30,000 over 5 years.
If you take the rebate and get a normal 7.99% loan on $27,000, you actually pay less overall.

💡 That’s right: sometimes a 7.99% loan with a discount saves you thousands more than a 0% loan.

🧐 So, Why Do Dealers Offer 0%?

Simple. It feels like a great deal, and it helps them move inventory—especially on slow-selling models. But for them, it’s just shifting numbers around. You’re still paying the price, just not through interest payments.

✅ What Should You Do Instead?

Use your power as a shopper.

Negotiate the lowest possible price on the vehicle. Then, secure your own financing at the best rate you can qualify for—ideally before even stepping foot in the dealership.

And that’s where CarRefinancing.ca comes in.

💸 CarRefinancing.ca: Real Loans, Real Savings

Already have a car loan? You don’t need to trade it in just to save money.

Refinance your current vehicle with a lower interest rate and better terms—potentially saving you thousands.

• ✅ Compare top lenders in Canada
• ✅ Lower your monthly payment
• ✅ Get matched instantly
• ✅ No obligation to accept

👉 Whether your rate is 9%, 11%, or higher—there’s a better deal out there.

🔁 Skip the Gimmicks. Refinance with Confidence.

Don’t fall for the 0% smoke and mirrors.

Visit CarRefinancing.ca and find out how much you could save by refinancing your car loan today.

Same car. Better deal. More money in your pocket.

Because real savings beat “0% interest” every time.