Carmakers Dodge Disaster With Biggest-Ever Share of 0% Loans

  • More than a quarter of new cars sold with no-interest deals
  • Toyota warns of risks; Hyundai says it emulated rivals

     

Photographer: Daniel Acker/Bloomberg
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Zero-percent financing deals hit a record last month as carmakers kept the U.S. auto market from collapsing.

More than one in every four new vehicles sold in April did so with 0% loans, according to market researcher EdmundsBloomberg Terminal. By opening up the lending spigots, the U.S. avoided a reprise of the almost 80%Bloomberg Terminal drop automakers experienced in China in February, the month the coronavirus hit the world’s largest car market hardest.