Sign In
Welcome! Sign In to personalize your Cat.com experience
If you already have an existing account with another Cat App, you can use the same account to sign in here
Register Now
One Account. All of Cat.
Your Caterpillar account is the single account you use to log in to select services and applications we offer. Shop for parts and machines online, manage your fleet, go mobile, and more.
Account Information
Site Settings
Security
Estimated read time: 5 minutes
As an equipment buyer, you have several different options for buying new equipment, including financing your purchase. Sometimes, lenders leverage limited-time offers to attract new customers by promoting 0% financing to help save on monthly payments — at least for a short time.
But what is 0% financing and is it a good deal for the buyer? Read our guide to equipment financing to discover how zero interest loans work, and learn other ways to save money on your next Cat® equipment purchase.
When a lender doesn’t charge interest for a specific time, it’s referred to as 0% financing. How long an interest-free period lasts depends on the lender and the type of product, but it can generally range between six months to two or more years.
Zero interest loans are often used as a marketing strategy to boost buyer interest and close a deal sooner. When people finance heavy equipment, lenders know that they can increase sales if the customer doesn't have to pay interest for a specific amount of time. But it’s important to be aware that 0% financing doesn’t necessarily mean you save money in the long run.
Lenders may make up for the lost revenue during the interest-free period by:
Regardless of the payment terms, it’s important to know that no lender is going to take a loss on earning interest. So, it's important to make sure you carefully review and understand your payment schedule and term agreements.
You might have different equipment financing options that allow you to choose between interest rate or annual percentage rate (APR) financing. APR financing is a single rate. It includes the interest rate plus fees that may be associated with the loan, like insurance or delivery costs.
An interest rate is solely the interest, and any applicable fees need to be paid on top of that rate. Because APR includes additional costs, it’s always a higher amount than the interest rate. The higher the APR, the more the buyer pays over the term of the loan.
When deciding whether 0% financing is a good deal, it’s critical to read the agreement and fully understand the terms. Find out when the interest-free period ends and what your payments will become at that point. Determine whether there are any penalties for missing a payment during the interest-free period and whether there are prepayment penalties. Ensure your business can cover the entire cost of the loan for the duration of the agreement.
Some things to consider when determining whether to choose 0% equipment financing include:
It’s important to understand how equipment financing will impact your bottom line. When choosing financing options, consult a business investment expert to determine your budget.
Use the Cat loan payment calculator to see how monthly payments fluctuate with different interest rates and down payment amounts.
*Subject to approval. Terms and conditions apply.
Cat equipment financing with Cat Financial makes equipment ownership easier. We offer coverage on a range of equipment, parts, services and protection plans that provides a stress-free path to financial planning for your business.
Some of the types of equipment that your business can finance through Cat financing include:
Learn how much your business can afford to finance. Use our convenient Cat affordability calculator.
The Cat Card is the smart way to get what you need to get the job done. Buy parts and pay for service. Purchase engines, work tools and attachments. Pay for a repair or rebuild. Rent equipment. Need extended protection or a Customer Value Agreement? You can put those on your Cat Card too.
Here’s how the Cat Card works:
Learn more and apply for a Cat Card today and make equipment ownership, maintenance and servicing easier, faster and more affordable.
* see cat.com/catcardrewards for details and terms and conditions.
Looking into financing equipment for a small business? See how small business equipment financing works and why you should consider lease and financing options.
Learn MoreOvercome the financial barriers that may be stunting your business' growth with these four steps. Don't let financial hurdles limit your ability to reach your goals.
Learn MoreBoth equipment lease and loan options have their advantages. Find out which can help you best optimize your budget in our equipment lease vs loan comparison.
Learn MoreDiscover how the Caterpillar Pay For Use™ program can improve your cash flow and offer more convenience and flexibility in your daily business operations.
Learn More