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The 0% Auto Loan Era Is Fading Into America's Rearview Mirror

The days of 0% financing appear to be over as interest rates slowly climb.

By Gabrielle Coppola | Updated on April 05, 2018
Car financing trends are heading away from 0%.

Carmakers that used zero-percent financing offers to juice sales at the height of the American auto boom are starting to abandon them as rising interest rates lift their own borrowing costs.

The average interest rate on consumers’ new-car loans climbed to 5.7% in March, the highest since 2009 and up from 5% a year ago, according to Edmunds. Zero-percent offers fell to 7.4% of auto loans last month, down from more than 11% the prior year and the lowest share in more than two years, the car-market researcher said.

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