what does it mean when a new car or truck has 0% Apr?

Answer 1

It means that they will sell the vehicle for a specific term without charging interest to your loan. Typically, this is in lieu of a cash rebate, so you will always want the dealership to figure payments for you using the 0% and compare it to a loan with the cash rebate financed at current bank rates. If the payments are the same, always take the money over the 0% because you will have a lower balance in the event you trade out of it, or total it. Good luck and I hope this helps.

Answer 2

The APR or the Annual Percentage Rate is the percentage you'll be paying to the lending agency, whether that's the financing company through the dealership or through your bank, or through your credit union. That's the cost, if you will, of borrowing that big lump sum of money from them and then paying them back over time. Knowing the APR is very important when you buy a car because that is what is going to be accumulating beyond the actual price of the vehicle itself. So, if you buy a vehicle for $10,000, you're going to be paying that money back plus whatever the APR is on top of that. Most people will go into buying a car thinking what their monthly payment is, and where their threshold is just on monthly payment. But the APR can then start to add up on you, especially if in order to get that payment down to a certain level, you'll add an additional year of interest to it. So maybe you're looking at a three-year loan, it goes out to four years in order to get that payment down. Well you need to know how many years that term is, and what the APR is, to see how much you're really going to be spending for that vehicle over the time you have the loan.

Answer 3

You will find that 0 apr requires you to forfeit all rebates and discounts.

Answer 4

It means you do not pay any interest on the loan. Be careful though, many dealers lure you in with that type of advertising only for you to find out you do not "qualify" for that financing because of your credit rating. (If you read the fine print at the bottom of the ad it gives the disclaimers)

Answer 5

interest free loan for whatever amount of time they offer it for.

Answer 6

Finance usually comes with a charge, where they calculate an interest amount they add on to you monthly payment.
So if you borrow 10K you may end up paying back 12k because of interest.
0%APR means no interest payments. so if you borrow 10 you pay back 10.

Answer 7

It means that the loan they offer you is interest-free.