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Zero-Percent Interest Auto Loans Return Just in Time for the Holidays

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Automakers are reintroducing this financing option in order to boost sales during the last two months of the year

happy couple buying car sales dealership

These stock models are certainly excited about the return of zero-percent loans

Last month, The News Wheel reported that the number of zero-percent interest loans offered by dealerships was on the decline. However, it would appear that reports of the zero-percent auto loan’s demise were somewhat exaggerated.

In fact, a handful of automakers are bringing back the financing option for the holiday season.


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Chief among those automakers is General Motors. GM is offering a zero-percent interest option for some of its most popular vehicle models, including the Silverado, Equinox, and Tahoe. The aforementioned financing option will be offered for up to 72 months on select models.

GM isn’t alone, either. Rivals Ford and Nissan are also offering zero-percent auto loans for some of their most popular vehicles.

Not only are these vehicles popular; they also happen to be the most profitable vehicles for these brands.

“The reports of the death of zero percent were exaggerated,” explained Jim Cain, a GM spokesman. “We said all along it was an important part of our tool kit. Zero percent has proven to be a good motivator.”


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Nevertheless, these zero-percent loan options are becoming more expensive for automakers. Rising interest rates have caused the number of zero-interest options throughout the market to shrink. In fact, only 3.8 percent of loans offered in October involved zero-interest financing, the lowest percentage in 11 years.

The reemergence of this financing option is likely a way for automakers to increase their sales before the end of the year. Currently, sales for various automakers are projected to fall in the last two months of the year.

As such, these zero-percent interest loans are most likely temporary. After the holiday season draws to a close, zero-percent loan options are expected to become an extreme rarity once again.

News Source: Jalopnik