Where the cost hides
- Manufacturer cash rebates are usually forfeited when you take the zero percent rate.
- The negotiated price often moves less on a zero percent deal.
- Zero percent terms are typically short, which pushes the payment up.
- Required add-ons, such as extended warranty or protection packages, sometimes appear in the fine print.
Do the comparison properly
Ask for two written quotes on the same vehicle: one with the rebate and standard financing, one at zero percent. Compare the total amount paid across the term. The cheaper option is rarely the one being promoted.
If you already signed one
Once the promotional period ends, some zero percent loans renew at a standard rate. Refinancing at that point, when the balance is lower and your credit has had time to improve, can be worth several thousand dollars.
What to watch for before you sign
A lower payment is not automatically a lower cost. Check these four things before you agree to new terms.
- The full cost of borrowing, not just the monthly payment: a longer term can lower the payment and raise the total interest.
- Payout penalties on your current loan, such as an early payoff fee or a discharge administration charge.
- Lender fees rolled into the new balance, which quietly increase what you owe.
- The vehicle value against your balance. If you owe far more than the car is worth, refinancing may not be approved without extra down payment.
Save thousands
Save thousands by refinancing your vehicle anywhere in Canada.
Free to apply, no obligation, and no credit check to pre-qualify.
Frequently asked questions
No, but they are a marketing structure. The interest is usually recovered through price, forfeited rebates or required add-ons.
Any remaining balance can convert to a standard rate, which is the moment refinancing is most worth checking.
Usually only if the promotional rate has ended or you need to change the term. Refinancing a genuine zero percent loan rarely saves money.