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0% financing deals on cars in Canada
We get it – car loans are a big financial commitment. That's why we scoured the internet for low and 0% interest car deals on now from top car brands in Canada.
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, but first, how do these offers work?
Before signing on the dotted line and driving off the lot, it pays to become familiar with the ins and outs of 0% financing, including benefits, downsides and who’s offering it currently.
Who is offering zero percent financing on cars in Canada?
In Canada, dealerships and loan search platforms can help you with 0% financing promotional deals.
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, such as Loans Canada and CarsFast. Loan search platforms partner with hundreds of dealerships to help you find the best offer for your next vehicle purchase.
Latest 0% financing deals on cars in Canada
Check out the table below to see who is offering the lowest rates, starting at 0%.
Brand
Lowest APR available
Vehicle & loan term
Chevrolet
0%
2024 Silverado 1500, on custom models (up to 72 months)
Chevrolet
0%
2024 Trailblazer, on select models (up to 60 months)
Chevrolet
0%
2024 Blazer (up to 60 months)
Chevrolet
0%
2024 Mailbu (up to 60 months)
Cadillac
0%
2024 LYRIQ (up to 72 months)
Cadillac
0%
2024 XT4 (up to 60 months)
Cadillac
0%
2024 XT5 (up to 60 months)
Cadillac
0%
2024 XT6 (up to 60 months)
Cadillac
0%
2024 CT4 (up to 60 months)
Cadillac
0%
2024 CT5 (up to 60 months)
GMC
0%
2024 Sierra 1500, on Pro Graphite models (up to 72 months)
GMC
0%
2024 Terrain (up to 48 months)
GMC
0%
2024 Hummer EV SUV (up to 60 months)
GMC
0%
2024 Hummer EV Pickup (up to 60 months)
Nissan
0.99%
2024 Rogue, select models (24 months)
Nissan
0.99%
2024 Kicks, select models (24 months)
Nissan
0.99%
2024 Sentra, select models (24 months)
Audi
1.48%
2024 A4 Sedan (up to 60 months)
Audi
1.48%
2024 Q4 e-tron (up to 60 months)
Audi
1.98%
2024 Q3 (up to 60 months)
Offers last verified on November 2, 2024 and expire on December 2, 2024 (where an expiration date is disclosed). Offers are on approved credit, vary by region and may have other conditions.
We’ve been seeing more 0% financing or low-rate offers in October and November 2024 among the 24 car brands we research monthly, compared to the previous 12 months. This suggests that dealerships today are more eager to move inventory off the lot compared to previous months.
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. It can even vary by city. 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 a car loan search platform or local dealership to find out what financing offers are available to you.
Snapshot: How 0% or low rate financing varies by region
As an example, here are Chevrolet’s November 2024 offers for the 2024 Equinox.
Toronto, Ontario: 0.99% for up to 60 months (EV model)
Owen Sound, Ontario: 0.99% for up to 60 months (EV model)
Vancouver, British Columbia: 0% for up to 48 months (EV model)
Calgary, Alberta: 0% for up to 48 months (EV model)
Winnipeg, Manitoba: 0% for up to 48 months (EV model)
Halifax, Nova Scotia: 0% for up to 48 months (EV model)
Charlottetown, Prince Edward Island: 0% for up to 48 months (EV model)
Montreal, Quebec: No financing offer
Offers last verified on November 2, 2024
What car companies are offering 0% financing in Canada?
Currently, there are a few car brands offering 0% financing, such as Cadillac, Chevrolet and GMC, all of which are offering 0% financing on select models. This research is based on a review of financing offers for November 2024 from 24 car brands in Canada.
Also, keep an eye out for Ford deals because it sometimes has 0% financing offers, especially for its F-150.
The truck brands that are currently offering 0% financing offers are Chevrolet (0% for the 2024 Silverado 1500, on custom models) and GMC (0% for the 2024 Sierra 1500, 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 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.
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
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.
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.
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. You might also want to get car loan pre-approval first so you have bargaining power.
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.
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 comparing your options and getting prequalified with a variety of lenders.
Frequently asked questions
Offers of 0% financing are much less common in Canada because of the shortage of new and used cars. Brands that have recently offered 0% financing or slightly higher rates include Chevrolet and GMC.
That depends on your lender. A down payment can help you pay your loan back much faster, and it also shows your lender that you have savings. You can also make sure your car doesn't depreciate beyond what it's worth by making a large down payment.
Not really. If you're offered a 0% car loan for a used car, you should read the fine print to see if there are any extra costs or fees to make up for the lack of interest being charged. It's also possible that your dealer is overcharging you for the vehicle to make up for the 0% interest rate.
It's possible to get approved for 0% financing on new cars in Canada if you have a strong credit score and meet other eligibility criteria.
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To make sure you get accurate and helpful information, this guide has been edited by Romana King as part of our fact-checking process.
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 bio
Leanne Escobal is a publisher for Finder. She has spent over 11 years working with financial products and services, specializing in content and marketing. Leanne has completed the Canadian securities course (CSC®) as well as the personal lending and mortgages course by the Canadian Securities Institute. She has a Bachelor of Arts (Honours) in English literature and creative writing from Western University. See full bio
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