What Credit Score Do You Need to Get 0% Interest on a Car?

Getting 0% interest on a car isn’t a trick or a secret deal reserved for billionaires. It’s a real offer - but only if your credit score is in the top tier. If you’re shopping for a new car and see a 0% APR promotion, you might think it’s too good to be true. It’s not. But it’s also not for everyone. The truth? You need a credit score of 750 or higher to reliably qualify for 0% APR car financing in Australia in 2026.

Why 0% APR Deals Exist

Car manufacturers don’t give away money. They use 0% financing as a sales tool. When they’re trying to move slow-selling models or hit quarterly targets, they partner with finance companies to absorb the interest cost. That’s why you’ll see these deals mostly on new cars from brands like Toyota, Hyundai, Kia, and Ford - especially during end-of-financial-year promotions in June or early July.

It’s not about helping you. It’s about getting you into a new car so they can sell you more later - service packages, extended warranties, or your next vehicle. The dealer makes money on the sale, and the manufacturer makes money on volume. You just happen to get zero interest as the incentive.

What Credit Score Do You Actually Need?

In Australia, credit scores range from 0 to 1,200. The major credit bureaus - Equifax, Experian, and illion - all use slightly different scales, but the general rules are the same:

• Below 500: Poor
• 500-620: Fair
• 621-725: Good
• 726-832: Very Good
• 833-1,200: Excellent

To get 0% APR, you need to be in the Excellent range - that’s 833 or higher. Most lenders won’t even consider you below 750. Even then, you’ll need more than just a high score.

Here’s what lenders look at beyond your credit score:

• History of on-time payments (no late payments in the last 24 months)
• Low credit utilisation (under 30% of your available credit)
• Long credit history (at least 3-5 years of active accounts)
• Minimal recent credit applications (no more than 1-2 in the last 6 months)
• Stable income (pay slips, tax returns, or bank statements showing consistent earnings)

One person with a score of 850 but who just changed jobs last month might get declined. Another with a score of 820 who’s been with the same employer for 5 years and has no debt might get approved instantly.

Real-World Example: How It Played Out

Last year, a Sydney customer named Mark wanted a new Hyundai Tucson. He saw a 0% APR offer online and thought he was golden. His credit score was 780 - solid, right? He applied and got denied. Why?

He had two personal loans open, a credit card with a $4,500 balance, and had applied for a new credit card two weeks earlier. His total debt-to-income ratio was 38%. Even with a great score, the lender saw him as a stretch risk.

He paid down his credit card to under $1,000, waited 45 days, and re-applied. Approved. Got the 0% deal. Saved $3,800 in interest over five years.

That’s not luck. That’s strategy.

What If Your Score Is Below 750?

If your score is between 700 and 749, you might still get a very low rate - maybe 1.9% or 2.9% APR. That’s still a huge savings compared to the average new car loan rate of 7.5% in 2026.

For scores under 700, 0% is off the table. But you’re not out of options:

• Get a co-signer with excellent credit
• Put down a larger deposit (20% or more)
• Buy a certified pre-owned car - they often have better finance deals
• Wait 6-12 months to improve your score before applying

Improving your score isn’t hard if you know what to do. Pay bills on time. Keep credit card balances low. Don’t close old accounts. Avoid new credit applications for at least 6 months before applying for a car loan.

How to Check Your Credit Score (for Free)

You can check your credit score for free with any of the three major bureaus:

• Equifax: Free report every three months
• Experian: Free monthly updates with their CreditExpert service
• illion: Free access via their website or through partnered banks

Don’t use third-party sites that ask for payment or credit card details. Stick to the official sources. And check your report for errors - 1 in 5 Australians have mistakes on their file that drag their score down.

When to Apply for 0% APR

Timing matters. Dealers push 0% deals hard at the end of the financial year (June) and during major sales events like the Melbourne International Motor Show or the Sydney Car Show. Some brands also run promotions in September or October to clear out the previous year’s models.

Don’t apply early. If you get pre-approved, the lender will do a hard credit check - and that can drop your score by 5-10 points. Wait until you’re ready to buy, then apply in one go. That way, you only get one hard inquiry, not five.

What’s the Catch?

There’s always a catch. 0% APR deals usually come with conditions:

• Only on new cars (not used or demo models)
• Shorter loan terms (usually 3-4 years, not 7)
• Higher monthly payments because the loan is paid off faster
• No cashback or trade-in bonuses - you have to choose one
• May require a larger down payment (10-20%)

Some people get so excited about 0% that they buy a more expensive car than they planned. That’s a trap. The goal isn’t to get the fanciest car - it’s to save money. Stick to your budget. Even with 0% interest, a $50,000 car is still $50,000.

Alternatives to 0% APR

If you don’t qualify for 0%, here are your next best options:

• Manufacturer finance deals - Even if it’s not 0%, brands like Kia and Suzuki often offer 1.9% or 2.5% for qualified buyers
• Bank or credit union loans - Sometimes better than dealer finance, especially if you’re an existing customer
• Personal loan - If your credit is good, you might get a lower rate than the dealer’s standard offer
• Buy used - Certified pre-owned cars often have low-rate financing and better value

Always compare. Use the MoneySmart car loan calculator to see what your monthly payments would be at different rates. A 1% difference on a $40,000 loan over five years saves you over $1,000.

Final Checklist: Are You Ready for 0% APR?

Before you apply, run through this:

1. Is your credit score 833 or higher?
2. Have you paid every bill on time for the last 2 years?
3. Is your credit utilisation below 25%?
4. Have you avoided new credit applications in the last 6 months?
5. Do you have proof of stable income (last 3 pay slips or tax returns)?
6. Are you prepared to pay a 10-20% deposit?
7. Have you checked the fine print on the 0% deal? (Term length, model restrictions, no cashback)

If you answered yes to all seven, you’re in a strong position. Apply. Negotiate. Get the deal.