Best 0% APR Car Deals: May 2023

The best 0% financing deals on new cars, SUVs, and trucks in May involve no-interest auto loans for 72 months plus as much as $25,000 in financing incentives which can save you a significant amount of money. In many cases, 0% APR deals on cars can beat interest rates from banks and credit unions.

While it may seem like rates are only going up, several car brands are still offering zero-interest loans on cars. Most of these incentives may require top-tier credit in order to qualify and can sometimes vary by region. Be sure to check with your dealership for customized financing based on your credit score.

Best 0% APR SUV Deals

The 2023 Ford Edge continues to have the best financing deal on a midsized SUV with zero interest for 3 years plus a $1,000 cash incentive. With the 2022 models finally selling out, we’re now seeing some modest cash offers starting on the most current Edge. Ford Edge deals can vary by region and the example here is for California.

The refreshed 2023 Ford Escape is one of the only small SUVs with 0% financing. While this deal is limited to 36-month loans, it could be a great way to save given sky-high interest rates from competing brands. Looking to save gas? The Escape Hybrid offers the exact same deal.

For maximum savings, consider the Escape Plug-In Hybrid. Opting for the Escape PHEV can get you access to a $7,500 federal tax credit. Due to the Inflation Reduction Act, there are new guidelines for qualifying vehicles and the Escape falls well below the MSRP cap for SUVs.

The 2023 Nissan Rogue got a price cut last month with the first 0% financing deal in a long time. Previously, the best rate was 2.59% APR, making this a much better time to buy.

Sadly, longer loans have much higher rates. For example, the 48-month interest rate on the Rogue is 4.99% APR. Current Nissan owners may qualify for a $500 loyalty discount.

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Best 0% APR Car Deals

Now that the 2022 models have sold out, the 2023 Ford Mustang presents a great chance to score a zero-interest loan. Loans start at 0% APR for 36 months. You can get incrementally higher APRs to take on a longer loan, with rates topping out at 5.9% APR for 72 months. This deal is available nationally, and we expect deals to be getting bets as the year wears on.

The Toyota Mirai still has a 0% financing deal so good that it sounds made up. Although the hydrogen-fuel-cell-electric car is only sold in California, buyers can get no interest for 6 years and as much as a $25,000 discount that you can only get when financing.

The Limited trim has the best deal you can get, while the entry-level Mirai XLE offers a $17,000 discount. The catch is that these discounts are only available when buying and not when leasing. This remains one of the best deals on an electrified vehicle.

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Best 0% APR Truck Deals

The 2023 Ford F-150 has one of the best 0% financing deals on a truck. Through July 5th, XLT SuperCrew styles qualify for a $1,000 bonus that you can stack with 0% financing. While the interest-free term is limited to a mere 36 months, you’ll be hard-pressed to find a better deal on a truck of this caliber.

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Are 0% APR Car Loans Worth It?

If you’re tempted by 0% APR, it’s important to keep in mind that there may be factors that determine whether or not 0% APR is worth it. At one point, RAM offered a choice between 0% APR for 72 months and $10,000 in savings. To find the best deal, you may need to weigh the total cost versus the monthly payment.

On a $50,000 truck, taking the financing would cost $50,000 at $694/month before taxes & fees. With a $10,000 discount, the same truck would cost $46,382 at $644/month assuming a rate of 5%. Here, taking the rebate would cost $50 less per month and be over $3,600 more affordable over the course of the loan.

So should you choose rebates or 0% APR? That depends. You may find that a lower payment trumps all for the sake of affordability. However, it’s also important to look at the total cost and weigh the risks of negative equity. After all, lower payments can make it very easy to buy more cars than you may be able to afford.

Sadly, rising inflation has promoted multiple Fed rate hikes. As a result, 0% APR car loans have become a lot harder to find. Even if you can manage to score a zero-interest loan, the odds are that the term will be a lot shorter than you’d like. Consider timing your purchase to find the best times to buy a car.

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