Interest free loans are only given by a car dealership. It’s almost always a special financing offer that is available for a set amount of time, perhaps a month or two, or a year. Many car dealers offer this type of loan to attract new customers, or to even sell new cars to existing customers.

Some people that are purchasing a new car choose to use mortgage financing. Mortgage financing is exactly what the name implies, you mortgage your home to obtain money to purchase the car. This is one of the most serious options because if something happens that you can’t repay the loan, you won’t just lose your car, you’ll lose your home.

Another option is to lease a car through the dealership. However, with a lease you don’t actually own the car, your basically renting it. Once the lease is up you do have the option to purchase the car at a lower price since you’ve already paid a portion of the cars purchase price.