Car loans are a major financial commitment, as they involve years of bill payments and interest costs. For this reason, getting a car loan with favourable terms and a low interest rate can make a huge difference on your wallet, which is why it’s worth comparing the best car loans in Canada before you commit. This is where 0% financing can be very attractive, as it can eliminate interest expenses. By skipping interest, 0% financing can make buying a car more affordable. Let’s take a closer look at 0% financing in Canada and the potential conditions that may come with it.
Key Points
1. 0% financing lets you borrow for a car with no interest, so every payment goes toward the principal.
2. These deals are offered mainly by manufacturers and dealerships on select models, and usually require good to excellent credit.
3. 0% financing often can’t be combined with cash rebates, so compare both to see which saves you more.
4. Offers change frequently and vary by brand, model, and region, so always confirm current deals before you buy.
Where Can I Find 0% Financing Offers On Cars In Canada?
Given the significant savings that come with zero interest on a car loan, you may want to know where to find such deals near you. While 0% financing offers on cars in Canada are not always available, when they are, you’ll be able to find them with any of the following sources:
- Car Dealerships: Many dealerships in Canada offer 0% financing deals. You may find these offers during promotional periods or for specific vehicle models. It’s recommended to check with several dealerships and compare offers to find the best deal.
- Manufacturers: Many vehicle manufacturers also offer 0% financing on car loans, especially as part of promotional offers or for certain models. Some of the top brands in Canada that offer 0% financing include Chevrolet, Ford, GMC, Buick, and Volkswagen.
- Loans Canada: Loans Canada partners with multiple lenders across Canada to provide financing options, which may include 0% financing for cars. The online platform makes it easy to find car loan deals near you based on your financial and credit profile. You can quickly compare offers and apply, making the loan application process quick, easy, and secure.
Latest 0% Financing Deals In Canada By Brand
Here are some of the latest 0% financing options, plus a few other low interest financing offers. All rates below are purchase financing (not lease) rates taken directly from each manufacturer’s Canadian website.
| Brand | Offer Details | Vehicle |
|---|---|---|
| Cadillac | 0% for up to 72 months | 2026 OPTIQ 2026 LYRIQ (select in-stock models, financed through GM Financial) |
| Nissan | From 0% financing | Select in-stock 2026 Rogue, Kicks and Sentra models |
| Volkswagen | 0% for 60 months | 2026 Jetta 1.5T Highline 2026 Atlas 2.0T Execline 2026 Atlas Cross Sport 2.0T Highline |
| Volkswagen | 0% for 24 months | 2026 Golf GTI Autobahn 2026 Golf R Black |
| Mitsubishi | 0% for up to 72 months | 2026 Outlander ES S-AWC |
| Volvo | 0% for 84 months | 2025 EX90 Twin Motor Performance Ultra |
| Alfa Romeo | 0% for 60 months | 2026 Giulia 2026 Stelvio |
| Alfa Romeo | 0% for 48 months | 2026 Tonale |
| Audi | 0.48%* for up to 60 months *Includes a 1% event rate reduction, plus a 2% reduction if you’re a returning Audi customer | 2025 Q5 and SQ5 TFSI quattro 2025 A5 and S5 TFSI quattro 2026 A3 and S3 Sedan |
| Subaru | 0.5% for 24 months | 2026 WRX Sport |
| Subaru | 0.99% for 24 months | 2026 Impreza Convenience 5-door 2026 Solterra AWD 2026 Uncharted FWD |
| Hyundai | 0.99% financing | 2026 Tucson Preferred AWD (new, in-stock only) |
| Kia | 0.99%* for 60 months *Includes a 1% loyalty rate reduction | 2026 Sportage LX FWD 2026 EV9 Light RWD |
| Volkswagen | 0.99% for 60 months | 2026 Tiguan 2.0T Comfortline R-Line Black 2026 Taos 1.5T Highline |
| BMW | 0.99% for 60 months | 2026 BMW i4 eDrive40 Gran Coupe |
| MINI | 0.99%* for 60 months *Includes a 1% loyalty rate reduction for eligible MINI customers | 2026 MINI John Cooper Works (3-door) 2026 MINI John Cooper Works Convertible |
| Hyundai | 2.79% for 84 months | 2026 IONIQ 9 Essential RWD |
| Dodge | 2.99% for 96 months (effective APR of 4.32% once the forgone cash discount is counted) | 2025 Charger Daytona |
| Ford | From 2.99% for up to 72 months | 2026 F-150 Lariat, Tremor, King Ranch and Platinum |
Note
Most of these offers expire August 31, 2026. Ford’s offers run to September 30, 2026, and Nissan, Mitsubishi, and Dodge don’t publish an end date. Offers may vary by region and may have conditions, with rates on approved credit through the manufacturer’s own finance arm, and many require you to buy from dealer stock.
Learn more: What Is A Good Interest Rate On A Car Loan?
0% Financing Cars In Ontario
0% financing offers in Canada are typically national manufacturer promotions, so 0 financing cars in Ontario come from the same brands and dealerships you’ll find across the country. That said, specific offers, eligible models, and available inventory can vary by region and even by individual dealership, so it pays to compare a few Ontario dealers.
To find the best 0% financing cars in Ontario, start with the manufacturer’s website to see the current national offer, then confirm it with local Ontario dealerships, since they may add regional incentives on top. Popular brands like Toyota, Chevrolet, Ford, and Volkswagen regularly run low-rate or 0% financing promotions on select models in Ontario, so if you have your eye on something like a 0 financing Toyota in Ontario, it’s worth checking the brand’s current offers and asking your local dealer what’s available.
0% Financing Features
Key features of 0% financing for cars are as follows:
- No Interest: You won’t pay any interest on your car loan. This means your entire monthly payments will go towards the principal amount, saving you money on your loan.
- Shorter Loan Terms: Car loans with 0% financing rates typically come with shorter loan terms. While this typically means higher monthly payments, you’ll pay the loan off faster and be debt-free sooner.
- Limited Availability: 0% financing offers are not always available. Plus, they’re not usually offered by lenders and banks, and tend to be provided mainly by dealerships and manufacturers during promotional periods.
- Strict Eligibility Criteria: Qualification requirements for 0% financing are typically strict. More specifically, you’ll need good credit to qualify.
- Limited Incentives Or Rebates: A 0% financing offer may often result in limits in other promotions and incentives, such as trade-in bonuses or cash rebates. In this case, you may have to choose between one or the other.
Learn more: 0% Car Financing In Canada
0% Financing Vs. Cash Rebates
As mentioned, 0% financing offers typically limit other incentives, including cash rebates. So, you may have to choose between the two. The question is, what exactly are cash rebates, and how do they differ or compare to 0% financing on car loans?
Cash rebates are incentives offered by dealerships or manufacturers to entice buyers to purchase a vehicle. On the other hand, 0% financing means there is no interest charged on the car loan, so monthly payments go strictly towards the principal.
Here are some key differences between cash rebates and 0% financing:
| Cash Rebates | 0% Financing | |
|---|---|---|
| Savings | Money is given back to you immediately at the time of purchase. | Lowers your monthly payments since there’s no interest, so you’ll see some savings with each payment you make. |
| Qualifications | Typically easier to qualify for compared to 0% financing. | You’ll need to have strong credit, so not everyone may be eligible. |
| Interest | You’ll likely still be charged interest on your car loan when you’re offered a cash rebate. | There’s no interest on a 0% financing car loan, which means your monthly payments go entirely towards the principal. |
How To Choose Between Cash Rebates And 0% Financing
To show you how much you could potentially save with a cash rebate versus 0% financing, let’s illustrate using an example of a $25,000 car loan and 60-month loan term. Now, let’s see how two different scenarios may determine whether a cash rebate or 0% financing may be best:
- Financing a $25,000 car with a 0% interest over 60 months, OR
- Financing a $25,000 car with a 7% interest over 60 months, plus get a $2,500 cash rebate.
| Cash Rebate Option | 0% Financing Option | |
|---|---|---|
| Car Price | $25,000 | $25,000 |
| Cash Rebate | $2,500 | N/A |
| Interest Rate | 7% APR | 0% |
| Term | 60 months | 60 months |
| Car Loan Amount | $22,500 | $25,000 |
| Monthly Payment | $445.53 | $416.67 |
| Total Paid | $26,731.62 | $25,000 |
Note: This is a simplified example and does not include taxes and fees.
In this example, it’s better to finance at 0% than take the cash offer. However, if the cash offer was higher and/or the interest rate was lower, the numbers could shift and the cash rebate may be the better offer.
Be sure to crunch the numbers to see whether or not the cash rebate saves you more than the total interest you would pay compared to a 0% financing offer.
Ultimately, the best option for you depends on your financial situation and goals. If you have very good credit and prefer to make smaller monthly payments, then 0% financing may be right for you. On the other hand, if you’re looking for immediate savings or have bad credit, a cash rebate might be the better choice.
Benefits And Downsides Of 0% Financing
No-interest financing on car loans can certainly be a great way to save money in interest payments. However, there are some downsides to consider as well. Be sure to weigh the pros and cons of 0% financing before committing.
Pros Of 0% Financing
- Lower overall cost: Since you’re not paying any interest, the total loan cost will be significantly lower over the loan term, saving you plenty of money.
- Quicker loan repayment: Typically, 0% financing comes with shorter loan terms, allowing you to repay your car loan sooner and get you out of debt.
Cons Of 0% Financing
- Limited offers: 0% financing offers are not always available, and when they are, they may be limited to specific models.
- Eligibility restrictions: You need good to excellent credit to qualify, leaving those with less-than-perfect credit out of luck.
- Conditions: There may be conditions to meet, such as a minimum down payment or additional warranties.
- Potential trade-offs: Dealerships often don’t allow different offers to be combined, so you might have to choose between 0% financing and other incentives like cash rebates.
- Inflated car prices: In some cases, dealerships may entice buyers with 0% financing but increase the car’s price to offset the lost interest.
Should You Get A 0% Car Loan?
A 0% car loan is worth it if you qualify and the deal genuinely saves you money. Because you pay no interest, every dollar of your payment goes toward the principal, which lowers your total cost and helps you pay the car off faster. It makes the most sense if you have good to excellent credit, can comfortably handle the higher monthly payments that come with the shorter terms, and don’t have to give up a larger cash rebate to get it.
On the other hand, a 0% car loan may not be the right choice if the offer forces you to skip a bigger cash rebate, if the dealer inflates the car’s price to make up for the lost interest, or if the required down payment stretches your budget. As shown above, the smartest move is to compare the 0% offer against any available cash rebate and run the numbers before you decide.
Caution
Be wary of 0% financing offers that have conditions like large down payment requirements. Make sure you’re comfortable with the upfront cost before agreeing to the loan arrangement.
Who Can Get 0% Financing?
As noted earlier, not everyone may qualify for 0% financing. There are certain eligibility criteria that must be met to get approved. Generally speaking, 0% financing is reserved for car buyers who meet the following criteria:
- Good Credit: You’ll need to have good to excellent credit to get approved for 0% financing on a car loan.
- Strong Income: Lenders want to make sure that you have a reliable and sufficient income to cover the monthly payments, even though payments may be lower thanks to zero interest.
- Low Debt-To-Income (DTI) Ratio: A low DTI ratio means your current debt level is manageable relative to your income. This is important when it comes to qualifying for a loan, including 0% financing.
Can People With Bad Credit Access 0% Deals?
Generally speaking, 0% financing deals are not accessible to those with bad credit, as these offers typically require excellent credit scores.
Alternatives To 0% Financing
If you’re struggling to qualify for 0% financing because of bad credit, there are bad credit car loan options and other alternatives to consider:
- Alternative Lenders: You may be more likely to qualify for a car loan from an alternative lender, as they are more likely to approve loans for those with bad credit and consider factors besides credit scores. However, you’ll likely pay a higher interest rate in exchange for this flexibility.
- Credit Unions: Many credit unions also offer loans to bad credit borrowers. Credit unions often have more flexible lending criteria compared to regular banks.
- Cash Rebates: Some dealerships offer cash rebates, which can be used as a down payment or to reduce the overall car loan amount. In turn, this can reduce your monthly payments and the total interest amount.
Taking out one of these loans and making your payments on time can also show how an auto loan can help you rebuild credit over time.
Bottom Line
A 0% financing offer can be a great way to save money in interest on a car loan. However, it’s important to consider the eligibility criteria and the potential conditions that come with such offers. Make sure to compare these 0% financing offers with other incentives, such as cash rebates, to determine which option can provide greater savings.
0% Car Financing FAQs
Offers change all the time, but brands like Chevrolet, Ford, Buick, GMC, and Volkswagen frequently run 0% financing promotions in Canada on select models. Because these deals come and go, check the manufacturer’s website and your local dealer for current offers.
Yes, it’s possible to secure a 0% rate on a car loan. However, you’ll need to have strong credit to qualify.
To finance a vehicle purchase at 0%, you’ll need to have a good credit score. Also, you’ll need to look for these deals from dealerships and manufacturers, as they’re not always available. Further, 0% financing may only apply to specific vehicle models.
Monthly payment amounts can vary for a $30,000 car loan for 60 months based on things like the interest rate and down payment amount. For instance, with a rate of 5% and zero down payment, the monthly payment would be $566.14. At a higher rate of 8% with a $5,000 down payment, the monthly payment amount would be $506.91.
GMC, Dodge, and Jeep have all offered 0% financing for 72 months on select models. Availability changes often, so confirm the current offer with the manufacturer or dealer.
Jeep, Chevrolet, and Volkswagen have all offered 0% financing for 60 months on select models. Confirm current offers directly with the brand, as they change frequently.
References
- Bank of Canada. (2026). Interest rates for new and existing lending by chartered banks. Bank of Canada.
