Auto

GLOSSARY:

• Auto loan calculator
• Auto loan
• Auto loan rates
• 0% interest

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Chevrolet has one of the best discounts of the year with 0% financing on several 2012 model cars and sport-utility vehicles.

You can get free auto loans for up to 60 months on the Impala and Malibu sedans as well as the Traverse SUV.

We think 0% financing is the best discount you can get on a new car or truck.

That's true even when the average cost of 36- to 60-month new-auto loans are at record lows of between 5.14% and 5.22%, according to our most recent survey of major lenders.

The Traverse LS, for example, starts at $30,335, including destination charge.

If you financed that amount at the national average of 5.22% for five years, the monthly payment would be about $576.

But take out an interest-free loan in that amount for five years, and your payments drop to about $506 a month.

So taking advantage of 0% interest could trim $70 from your monthly payments, and you would save more than $4,200 in interest charges over the loan term.

In some areas of the country, dealers are offering regular financing rates along with a bonus cash incentive of $1,500.

But if you choose 0% financing and save $4,200 or more in interest fees, the amount saved more than doubles the cash-back amount. An interest-free auto loan is still the better deal.

Use our auto loan calculator to help you budget your monthly payment.

The 0% financing deals are offered through Ally Financial to buyers who take new retail delivery from the dealer by Feb 29.

Although these loans are available nationwide, details may vary depending on where you live.

You'll probably need a FICO score of at least 670 to qualify, and a down payment may also be required.

If you’re in the market for a new auto, read our 5 simple steps to the best deal on a new car or truck. You can learn how to shop with confidence.

In addition, search our database of the best rates on auto loans from scores of other lenders in your area. It can help you score an affordable loan if you decide to buy a car that doesn’t qualify for interest-free financing.

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