Is It Still Possible To Get 0% Financing In Alberta In 2024?

We here at House of Cars understand that the idea of driving off the lot without paying a penny in interest sounds like a deal too good to pass up. But as we get deeper into 2024, many Albertans may be wondering: is it still possible to snag a 0% financing deal?

How Does 0% Financing Work?

0% financing means that you can borrow money to purchase a car without incurring any interest charges. Instead of paying interest on the loan, you’re only responsible for repaying the principal amount borrowed. Great deal! Or so it seems…

While 0% financing may seem like a dream come true, it’s wise to approach these offers with caution. In many cases, 0% financing deals are reserved for buyers with excellent credit scores. These offers may also come with stringent eligibility requirements and limited availability. Also, many dealers will find other ways to make up for any losses, at your expense.

How Economic Conditions Affect Interest Rates

The Bank of Canada sets the benchmark interest rate, which influences borrowing costs across the country. The Bank of Canada has gradually increased interest rates in recent years to combat inflation since the pandemic in 2020. Those rates have noticeably increased since 2022.

In addition to the Bank of Canada’s benchmark rate, individual banks and lenders set their own interest rates for auto loans. These rates can vary depending on the borrower’s creditworthiness, loan term, and the type of vehicle being financed, adding up to a 5% interest rate or more to borrow.

The Reality of 0% Financing Offers

While 0% financing offers may sound tempting, the reality is that they may not always be as beneficial as they seem. In some cases, automakers may offer 0% financing as a marketing tactic to attract customers, but there may be hidden costs or trade-offs involved.

For example, some 0% financing offers may require buyers to forego other incentives, such as cash rebates or discounts. Additionally, 0% financing deals may be limited to specific vehicle models or trim levels, meaning that buyers may not have as much flexibility in their purchasing decisions.

Furthermore, securing 0% financing often requires meeting strict eligibility criteria, including having an excellent credit score and a deposit. For buyers who don’t meet these criteria, the advertised 0% financing rate may be out of reach, and they may end up paying a higher interest rate on their loan.

Not to mention, it’s harder to find available 0% interest rates in 2024 compared to prior years. More often than not, you’ll find yourself at a roadblock.

What to Consider When Financing a Car

Before committing to a 0% financing offer, buyers should carefully review the terms and conditions, including any eligibility requirements and potential limitations. Additionally, it’s essential to shop around and compare offers from multiple lenders to ensure that you’re getting the best possible deal.

Aside from the scarcity of 0% finance offers, Albertan’s are also facing issues securing a loan in general. Right now in 2024, it can be challenging to get lenders to approve you, especially if you don’t meet their credit expectations.

So what do you do if you can’t secure a loan or financing from a bank or lender at a reasonable rate?

You come to House of Cars! 

With our extensive network of banks and lenders, we’re committed to helping you secure a loan tailored to your needs and budget, regardless of your credit score. Our team can help you get reasonable rates and flexible financing options that fit your budget. Plus, with one of the largest connections in the industry, your chances of approval are higher than ever. 

Check out our wide selection of vehicles today and take advantage of our easy online financing application to calculate an estimated rate and payments without impacting your credit score.

At House of Cars, we’re here to make your car-buying journey smooth and stress-free!