If you have good credit, and a down payment saved, it is very tempting to buy a new car now. Auto makers are eager to make a good deal, and some great auto financing deals can be found. But here is the question that comes up often: Are 0% Car Loans a good deal?

Well it turns out that loans without interest often require a fairly quick payoff time. If you can afford to pay off your car in 3 years, rather than 5 or 7 years, you will save money in the long run. But you can still find some very low interest rate loans that will let you have a longer time to pay your car off, and this will reduce your monthly payment. If that longer payout fits better into your own monthly budget, then you may consider it even if it will cost more in the long run.

Of course, it would be better to have the cash to just pay off a car, but reliable transportation pays off in the long run.

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