What will the interest rates be for a zero-down payment car loan?

When it comes to zero down payment car loans for used cars, the interest rates typically depend on several factors, including your credit score, the lender's policies, the age of the vehicle, and your overall financial profile. Since zero down payment loans mean you are financing the car's entire value, lending institutions may view it as a slightly higher risk and offer higher interest rates than those for loans where a down payment is made.

For used cars, interest rates typically range between 8% and 20%, depending on the lender. Borrowers with a strong credit score (700 and above) are more likely to secure lower interest rates. If your credit score is average or below, you might face higher rates. These rates might differ per the financial institution's terms and conditions.

Additionally, the age of the car plays a role. Older vehicles attract higher rates because of their depreciated value and lower resale potential. To ensure you get the best deal, compare offers from different banks, Non-banking Financial Companies (NBFCs), or online financial institutions. Some institutions provide attractive terms if you have a steady income or an existing relationship with the lending institution. Always read the loan terms carefully to avoid hidden charges.