The Return Of 0% Loans

They're back — and better. Faced with slow sales, General Motors last week rolled out offers for 0% financing on almost every model, including Cadillacs and Saabs. Chrysler, Ford and Toyota quickly followed (albeit with deals on fewer models). This time many 0% loans extend not just three years but five.

You will need good credit to get the best rates; auto analyst Art Spinella of CNW Market Research in Bandon, Ore., says about half of applicants should qualify. And the current 0% deals, enticing as they look, aren't always the best option. You may find that taking one of today's large rebates and financing the balance with a low-interest loan will result in lower payments. (Five-year loans under 5% are widely available.) Here are some specific offers:

GM 0% for 60 months, or a $3,000 rebate, on almost all models, including Cadillac, Saab and Saturn. Exception: Hummer. Expires April 30.

FORD 0% for 60 months, or a $3,000 rebate, on many Ford, Lincoln and Mercury models. Exceptions: Jaguar, Land Rover, Volvo. Expires May 5.

CHRYSLER 0% for 60 months on some Chrysler, Dodge and Jeep models. Rebates vary. Expires April 30.

TOYOTA 0% for 36 months on some models in some markets. Exception: Lexus. Expiration dates vary.