Interest is the way lenders make money, so a 0% APR seems like it would make them bankrupt. However, these captive finance companies profit when the dealership does. In that case, you may see an interest-free car loan offer attached to a pricier vehicle, or you may notice that the salesperson tries hard to sell you on extras like interior packages or extended warranties. Where they lose out on interest, they attempt to make up for elsewhere. In many cases, 0% APR offers are only applicable to those with higher credit. Not everyone has astounding credit. Even if you see an interest-free offer on a billboard, you may or may not qualify for it. Your credit reports take into consideration things like your debt-to-equity ratio, employment history and identity verification. Sometimes, interest-free car loans come with caveats regarding the repayment time period. You may have to pay your loan off quicker, which means your monthly payments may be much higher. Make sure you can afford this before signing onto anything. Of course, there's also the notion of new car depreciation. New cars lose about each year. If you're weighing the options of a used car versus a new car with an interest-free loan, you may not be getting the best deal with 0% APR because of depreciation.