Q:

Do you need good credit to get 0 percent down financing on a car?

A:

Quick Answer

Automakers typically offer zero down payment lease deals to buyers with excellent credit, according to Autotrader. However, zero percent interest financing is sometimes available to buyers with less than perfect credit.

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Full Answer

Zero percent interest financing is a subsidization tactic automakers use to combat the downward trend of automobile sales, explains Kelley Blue Book. However, this type of financing usually entails a shorter loan term, which results in higher monthly payments.

Zero down payment lease deals are also used by dealers to lure unqualified buyers in the door. In this case, the dealer attempts to talk the prospective buyer into a pricier lease.

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