0 APR Car Deals October 2012

Mazda 2 For $235 MonthIt’s been a while since I’ve published a segment on 0 APR Car Deals. In some cases, these no-interest car loans make more sense than a lease; especially those with the 60 month and 72 month terms. But, there is one thing to keep in mind with 0 APR Car Deals:  The car makers and dealers offering them are still making money on the car. So, how do they do it? They make their money on the sales price of the car. Consider this example of a no-interest loan at full MSRP vs a low-interest loan for a car sold at a traditional, low interest rate.

0 APR Car Deals at Full MSRP

Let’s say we are are interested in buying a Ford Focus with an MSRP of 19,000. The Dealer invoice is $17,500. A good sales price for a car like this would be around $18,000 with the dealer making $500 and buyer getting $1,000 off the price of the car. But, if our interest rate is 6% for 60 months, our total cost to own the car is $22,039.00. On a 60 month, no interest loan, we might pay full retail price for the car, but we are still saving $1,879 over the discounted car on a 6%, 60-month loan. ($20,879 – $19,000=$1879) Even at a ridiculously, low interest-rate of say, 2.9%, our total cost to own the car would still be slightly more than the no interest loan at full MSRP: $19,358. As you can see, what matters most is the total cost of the car over the life of the loan. An interest rate at or below 2.9% along with a huge sales discount might be better than a 0% APR car loan at full MSRP. Using a simple calculator you can multiply your number of payments by the loan term to see which way of financing gives you the lowest total cost of ownership. Suffice it to say, 0% APR Car Deals at MSRP or below are always good deals.


Ten 0% APR Car Deals for October

60 Month Term / 0% Car Loan Incentives

Car ModelMSRPLoan TermMonthly PaymentTotal Cost
2011 Toyota Camry LE$23,00060$383.33$23,000
2011 Nissan Maxima$32,00060$533.33$32,000
2011 Nissan Murano FWD S$29,50060$491.66$29,500
2011 Mazda 2 4-Door Hatch$14,10060$235.00$14,100
2011 Chrysler Town & Country Limited$39,82560$663.75$39,825
2011 Chrysler 300C RWD$38,17060$636.16$38,170
2011 Dodge Nitro R/T$24,54560$409.00$24,545
2011 Chevrolet Malibu 1LS$22,00060$366.67$22,000
2011 Chevrolet HHR 1LS$18,72060$312.00$18,720
2011 Mazda CX-7 FWD$22,00060$367.00$21,500
Includes $500 Customer Cash