If you’re ready to buy  a new car and are looking into financing it, there are some things you need to know about zero-percent financing. If you watch TV at all, then you’ve likely seen those car dealerships trying to bait new customers in with the zero-percent financing sales-pitch.

You may be wondering if that could possibly be true and the answer to that depends on several factors and even those factors have loop holes. Here are 3 things you need to know about zero percent financing.

There are no free rides – Car dealers use this as a way to lure in customers. But the truth is, around 90% of people won’t qualify. You have to have stellar credit in order to even be considered.

Your monthly rate will be short and high – These short term loans usually last around 3 years and in order to make up for the interest lost, you’ll be paying back a lot of more premium.

The price of the car might increase – No one wants to lose money, so many times the dealership will make up for the lost interest by increasing the price of the vehicle.