Typically refers to a loan that charges no interest. Its most common use is as an enticement for new car and truck buyers. Automakers subsidize the loans offered by their associated finance companies to reduce, or even eliminate, the interest charge. Discount loans are usually limited to specific models and often limited to vehicles already on the dealer’s lot. In addition, you might not be able to take both a rebate, if one is available, and a 0% interest loan. Our “Rebate vs. low-cost loan” calculator can help you choose the one that will save you the most money.