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0% financing deals on cars in Canada

What 0% financing means on a car loan, who's offering it currently and what to watch out for when sealing the deal.

When shopping for a new car, you’ll come across advertisements with extremely low-interest rates – even 0% car financing deals. Finding a low or 0% interest car deal can be a great way to save, especially considering that, according to AutoTrader’s Price Index, the average price for a new car in Canada has increased by 7.4% by March 2024 compared to the previous year.

How do these offers work, and are they too good to be true? Before signing on the dotted line and driving off the lot, it’s best to learn more about 0% financing. Plus, find out who currently offers 0% financing in Canada.

Who is offering zero percent financing on cars in Canada?

In Canada, dealerships and loan brokers can help you with 0% financing promotional deals. However, you should know that despite the splashy advertisements, 0% financing deals are hard to find these days unless you meet specific criteria.

To find the lowest rates available on the market, whether that’s 0% financing or slightly higher, one option is to apply to a loan search platform like Loans Canada. Loan search platforms partner with many dealerships to help you find the best offer for your next vehicle purchase.

Quick Pre-Approval

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  • Rates from 3.90% - 29.90%
  • Borrow $500 - $75,000
  • Get matched with offers

0% Financing

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  • Rates from 0% - 46.96%
  • Borrow $500 - $50,000
  • Get matched with offers

Used Cars

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  • Rates from 3.90% - 29.90%
  • Borrow $500 - $75,000
  • 6 dealerships in Ontario

Latest 0% financing deals on cars in Canada

Check out the table below to see who offers low rate or 0% financing on cars in Canada, this month. We also list the lowest financing deals currently available from popular car brands.

BrandLowest-rate finance deal (APR)Vehicle & loan term
Ford0%2023 F-150 Lightning, on select models (up to 72 months)
GMC0%2024 Sierra 1500, on Pro and Elevation models (up to 60 months)
Chevrolet0%2024 Silverado 1500, on select trims (up to 60 months)
Ford0.99%2024 Bronco, on most models (up to 60 months)
Ford0.99%2024 Escape (up to 60 months)
Ford0.99%2024 Bronco Sport, on select models (up to 60 months)
Volkswagen0.99%2024 ID.4 (36 months)
Cadillac0.99%2024 LYRIQ (up to 36 months)
Cadillac0.99%2024 XT6 (up to 36 months)
Cadillac0.99%2024 CT4 (up to 36 months)
Cadillac0.99%2024 CT5 (up to 36 months)
Subaru1.49%2024 Solterra (24 months)
Subaru1.49%2023 Solterra (24 months)
Volkswagen1.49%2024 Tiguan (24 months)
Mazda1.9%2024 CX-90 GS-L (up to 36 months)
Volkswagen1.99%2024 Taos (24 months)
Volkswagen1.99%2024 Atlas, on select models (24 months)
Audi2.48%2024 Audi Q5 (60 months)
Nissan2.49%2024 Pathfinder (24 months)
Chevrolet2.99%2024 Malibu (up to 48 months)
Jeep2.99%2023 Grand Cherokee 4xe PHEV Overland (72 months)
Mitsubishi2.99%2024 Eclipse Cross (term length not disclosed)
Mitsubishi2.99%2024 RVR (term length not disclosed)
Mitsubishi2.99%2024 Mirage (term length not disclosed)
Volkswagen2.99%2024 Jetta (24 months)
Subaru3.49%2024 Impreza (24 months)
Land Rover3.49%2024 Defender 110 S (P300) (84 months)
Jeep3.85%2024 Grand Cherokee Limited (60 months)
Ram3.86%2024 Ram 1500 Tradesman (60 months)

Offers last verified on June 4, 2024 and expire either on June 30, 2024 or July 2, 2024 (where an expiration date is disclosed). Ford offers are valid through June 1-6 and June 26-July 2, 2024. Offers are on approved credit, vary by region and may have other conditions.

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0% financing in one province, such as Ontario, may not be available in other provinces

The types of financing offers advertised by dealerships will depend on where you live. So the low or 0% financing car deals at Ontario dealerships could be different from the deals offered at dealerships in Alberta or BC. Plus, the deals you qualify for will depend on factors like your credit score, income and whether you have a down payment.

When you’re ready to shop for your next car, check with your local dealerships to find out what financing offers are available at that time.

What car companies are offering 0% financing in Canada?

Currently, there are three car brands offering 0% financing – Ford, GMC and Chevrolet, all of which are offering 0% financing on select models. This research is based on a review of financing offers for June 2024 from 24 car brands in Canada.

Where can you get 0% financing on trucks?

The car brands that are currently offering 0% financing offers are Chevrolet (0% for the 2024 Silverado 1500, on select trims), GMC (0% for the 2024 Sierra 1500, on Pro and Elevation models) and Ford (0% for the 2023 F-150 Lightning, on select models).

What does 0% financing mean on a car loan?

A 0% financing offer allows you to borrow money to buy a vehicle without having to pay interest and financing fees, which combined is known as the annual percentage rate (APR). Dealerships mostly offer this type of financing as a way to sell more cars. It is usually reserved for customers with excellent credit scores (usually above 700).

Banks or other lending institutions do not typically offer 0% financing on cars in Canada because these institutions have nothing to gain by offering this type of financing. On the other hand, a dealership will be more willing to offer 0% car financing deals since it gets you driving off the lot in one of their vehicles and this helps move inventory.

0% financing sounds too good to be true. What’s the catch?

At first glance, 0% financing on a car is exactly as it appears: You purchase a new car at the agreed-on price and then make monthly payments on the debt, with no interest for a set number of months. However, keep these points in mind:

  • 0% interest may only be offered for part of the loan term
  • To be approved, you’ll need a spectacular credit score (above 700)
  • Negotiating the car price can be difficult
  • 0% car financing deals are only available for certain makes and models
  • You may not get as much money for your trade-in vehicle
  • The loan structure will likely be set in stone

Pros and cons of car deals with 0% finance

Pros

  • 0% interest. Paying no interest on your car loan can save you hundreds or thousands of dollars in the long run (depending on your loan amount).
  • One-stop shop for financing. Dealerships offer 0% financing in Canada on car loans so you can drive off the lot in your new vehicle with a single transaction.
  • Faster repayment. You’ll usually be able to pay 0% financing car loans off faster than you would with a traditional car loan (because terms are often shorter and there’s no interest).
  • Lets you upgrade your car choice. You may be able to afford a more expensive vehicle or luxury upgrades such as a sunroof or alloy wheels with a 0% car loan.

Cons

  • Only available from dealerships. 0% car loans are typically only offered by dealerships, which means you can’t get them from the bank or another lender.
  • More limitations. You may only be able to get financing for certain kinds of vehicles with 0% car loans, such as those that the dealership is trying to move off the lot.
  • More difficult to qualify. You can only qualify for a 0% car finance offer if you have good to excellent credit and a high income.
  • Higher monthly payments. 0% financing often comes with shorter terms to reduce the risk that you’ll default (which means higher monthly payments).
  • Risk that you’ll pay more. You could end up paying a higher price for your vehicle to make up for the lower interest rate (so your dealer still cuts a higher profit).
  • May be a limited offer. You may only get 0% financing for a portion of your loan amount or as an introductory offer for a limited amount of time.

Compare car loans in Canada

If you don’t qualify for 0% financing in Canada or would like to consider alternatives, you can explore your options here.

1 - 6 of 6
Name Product Ratings APR Range Loan Amount Loan Term Requirements Broker Compliance
CarsFast Car Loans
Customer Survey:
★★★★★
3.90% - 29.90%
$500 - $75,000
12 - 96 months
Requirements: Min. income of $2,000 /month, 3+ months employed
CarsFast will connect you with a dealership near you to help you find the right financing.
Loans Canada Car Loans
Customer Survey:
★★★★★
0% - 46.96%
$500 - $50,000
3 - 60 months
Requirements: Min. income of $1,800 /month, 3+ months employed
Loans Canada is a loan search platform. Get matched with a suitable dealer based on your credit history and borrowing requirements.
Approval Genie
Not yet rated
3.90% - 29.90%
$500 - $75,000
12 - 96 months
Requirements: Min. income of $2,000 /month, 3+ months employed, Ontario only
Get customized car loan and auto financing solutions for a used vehicle that fits your budget and lifestyle.
Dealerhop Car Loans
Not yet rated
6.99% - 29.99%
$7,000 - $50,000
12 - 96 months
Requirements: Min. income of $2,000 /month, 3+ months employed
Dealerhop matches you with a dealer partner to get you financing.
Clutch Car Loans
Customer Survey:
★★★★★
From 8.49%
$7,500 - No max.
12 - 96 months
Requirements: 3+ months employed, Max.1 bankruptcy, Ontario & Nova Scotia only
Apply for financing with online dealer Clutch, who partners with some of Canada’s largest financial institutions to get you competitive interest rates.
CarDoor Car Loan
Customer Survey:
★★★★★
From 7.99%
$5,000 - No max.
12 - 96 months
Requirements: 3+ months employed, Max.1 bankruptcy, Ontario only
Online dealer CarDoor works with multiple lenders to help you get a competitive interest rate. Apply for financing directly with CarDoor and get help every step of the way.
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Plans to get a new vehicle

In the recent Finder: Consumer Sentiment Survey Q2, 15% of respondents plan to take out a car loan in the next three months.

More than a third of Canadians (35%) who plan to buy a vehicle in the next three months expect to make the purchase at a new car dealership.

How to get 0% financing on new cars in Canada

To get 0% car financing in Canada, you’ll need to do your homework. Follow these steps to get started:

  1. Check your credit score. Your first step in qualifying for a 0% car loan is to make sure your credit score is in excellent shape. You can do this by requesting a copy of your score from a major credit bureau such as Equifax or TransUnion.
  2. Shop around. Decide which vehicle you want to buy in advance and then shop around with a number of dealerships to compare prices. This makes sure you find a dealership that’s offering a reasonable price for the vehicle you’re interested in.
  3. Call the dealership. Call the dealership you choose to find out if it currently offers 0% financing on any models. If not, you can make your way down the list of dealerships you’ve compared until you find one that offers 0% car financing.
  4. Gather your documentation. When it’s time to visit the dealership, you’ll want to bring along information about your credit score and monthly income. If your credit score is low, you likely won’t qualify for 0% financing and may need to explore other options.
  5. Negotiate the deal. Work with your dealer to get the best deal possible on your loan. And keep in mind that there are always other options if your dealer won’t budge on certain conditions.

Red flags to watch out for with 0% car finance deals

There are a few red flags you need to watch for when shopping around for 0% financing in Canada:

  • False promises. You should steer clear of lenders that offer 0% financing without checking your credit score or financial details.
  • Higher vehicle prices. Avoid lenders that offer 0% car financing deals but have much higher vehicle prices than other dealerships in your local area.
  • Introductory offers. Keep an eye out for deals that offer 0% financing for only a short introductory period but then start charging interest mid-way through your term.
  • Bad customer reviews. Double-check online reviews for the lender you want to go with before you sign a loan contract to make sure there are no major issues.

How to get a good deal without a 0% interest car loan

There are a number of things you can do to get a better offer on your next vehicle, even if you don’t qualify for 0% financing deals, including:

  • Get pre-approved. It makes sense to get pre-approved for a car loan to find out how much you have to spend before you start shopping. However, the pre-approval offered by car loan lenders in Canada is not the same as mortgage pre-approval. Instead of asking for income and debt — and then confirming these details to confirm the exact amount you are able to borrow — most car loan lenders will offer pre-approval as a way to get you into their customer database. You will not be able to use the amount or terms as a bargaining chip while shopping for a vehicle until you go through the formal process of applying for a car loan using a hard credit check.
  • Compare prices. Compare different lenders to find out what rates and loan amount you can qualify for. Once you know how much you have to spend, shop around to find any low or 0% interest car deals on offer for the vehicle you want.
  • Shop for a used vehicle. Check out online offers for used vehicles or ask to see the inventory of used cars with your dealer. Just be aware that it can be more difficult to get financing if the vehicle is older or has high mileage. Learn more about buying a used car.
  • Look for sales or special offers. Wait for sales such as employee-pricing events or cash-rebate offers to save the most money on your car. This will let you drive off the lot with the best deal possible.
  • Improve your credit score. Work on improving your credit to make sure you can qualify for the lowest interest rates available. Start by finding out what credit score you need to get approved for a car loan.

Can I get 0% financing if I have bad credit?

Car dealers with 0% financing won’t offer this financing deal to borrowers with bad credit, as the dealer will consider the loan to be too risky.

The best way to get around this is to improve your credit score so that lenders see you as a reliable customer. If you need to purchase a vehicle using a car loan before you can improve your credit score then be prepared to pay higher interest rates.

Bottom line

Getting 0% car financing deals can save you money on interest rates and let you pay your car loan off faster. The main downside of these loans is that they come with strict eligibility requirements and are usually only offered by car dealerships. But even if you can’t qualify for 0% financing in Canada, you can still lock in a low interest rate by carefully comparing your options and getting prequalified with a variety of lenders.

Frequently asked questions about 0% financing

Written by

Claire Horwood

Claire Horwood was a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee. See full profile

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