Common requirements for 0% auto loans

As interest rates of most car loans are in constant rise, dealerships began promoting 0% auto loans to attract customers to buy their cars. This type of loan has literally zero interest rates attached to it. These loans are attractive since car buyers have the chance to buy their cars through loans with payment terms similar to buying vehicles on cash basis. However, this type of loan has stricter requirements such as the following:

Higher credit score

While most average loans requires a credit score of 650 or higher, a 0% auto loan applicant needs to have a credit score higher than this. Most lenders require a loan applicant to possess a credit score of at least 680 to qualify for 0% auto loans. For luxury car buyers, the credit score requirement for 0% auto loans is at least 700 or 720 making this type of loan out of average car buyers reach.

Larger down payment

Since these loans don