0% Financing on New Ford's At Sharpnack Ford In Willard Ohio

0% Financing Means You Pay No Interest At All

What does it mean to get a zero percent financing? It simply means you’ll pay no interest on your loan. A zero percent deal can save you thousands of dollars in interest payments over the life of your car loan, which lowers the total cost of buying the vehicle.Even if the interest rate on the loan you get is only a few percent, when you finance at zero percent, you'll save a good deal of money. Here's an example using the popular Ford F-150 pickup truck. We'll say you've chosen a midrange 2020 Ford F-150 Lariat that carries a price tag of $42,500. With a 6 year zero percent loan, you simply divide the price by the number of months in the loan term. Dividing $42,500 by 72 shows you would have a monthly payment of $590. Without the zero percent offer, you would have to pay interest on the truck loan. The average market rate for a 6 year auto loan is currently around 5.9%. Plug the price, interest rate, and loan term into an auto loan calculator, and you’ll find that the monthly payment for the pickup is $702. Over the course of the loan, you would pay $8,064 in interest.

It Can Reduce Your Monthly Payment

In the example above, getting a zero percent financing would lower the monthly payment for a well-qualified buyer from $702 to $590 per month. That $112 per month difference can be the difference between a vehicle that fits into your budget and one that doesn’t. In general, the less expensive the vehicle you buy and finance, the smaller the savings will be. The more you finance, the more potential savings you will have. It’s important to remember that you should never buy a car based solely on the monthly payment. Instead, you want to look at the total cost of the vehicle, including the cost of financing. 

It Can Allow You to Afford a More Expensive Vehicle

Another way a zero percent deal can help you is by letting you fit a nicer newer car into your budget, with the same payment you would have had without the offer. We’ll use the pickup purchase from above to demonstrate how much more expensive of a vehicle you can buy if you’re able to finance it at zero percent. Since you’re paying no interest, you simply multiply the payment by the number of months in the loan term to see how much vehicle you can afford. In this case, $702 multiplied by 72 months is $50,544. With the extra $8,000 in your budget, you can upgrade your truck with a diesel engine, four-wheel drive, or one of many option packages available.

You Will Need to Compare 0% Financing Offers to Other The Deals Available

Sometimes you’ll see Ford offer a choice of cash back or zero percent new car financing. You’ll want to compare the two side-by-side with your sales and solution providers at Sharpnack Ford to determine which saves you the most money. Here’s how you compare two competing deals: For this example, we’ll say that you’ve found the new Ford vehicle of your dreams, and you have negotiated a price of $30,000. It’s being advertised with either an interest-free financing deal for five years or $3,000 cash back. Which is the better deal? Opt for the zero-percent financing offer, and the cost of the vehicle is $30,000 since you won't be paying any interest. Assuming you don't make a down payment or have a trade-in, you’ll have 60 equal monthly payments of $500. Take the cash back deal (which may be called bonus cash or a cash rebate), and you'll drop the price of the car to $27,000. However, since you can’t get both the rebate and special financing rate on the same deal, you'll have to pay interest for five years. Currently, the average rate on a five-year loan is about 4.6%. The math to figure out interest is complicated, so we'll use a car loan calculator to work out the numbers. Simply enter the length of the loan, the interest rate, and the vehicle's price, and it will figure out the monthly payment. In this case, the monthly payment is $505. In our example, the cash back deal will cost you $5 more per month, or $300 over the course of the Ford Motor Credit loan. Because of all of the variables involved, you will want to run the numbers with your Sharpnack Ford Sales Person on any vehicle you are considering. This will be the easy part and you will be confident you are choosing the best way to owning a brand new Ford. 

0% Financing on Most New Ford's at Sharpnack Ford

Schedule A 24 Hour Test Drive

or At Home Delivery Available

WE ARE FINANCING SPECIALIST

 

Tax title and license fees extra. 0% Financing inlieu of most rebates, Ford Motor Credit with approved credit. No security deposit required. Residency restrictions apply, Includes all applicable rebates and incentives.