Data this week from major auto financiers shows a surge in applications tied to 0 APR car finance promotions. This increased volume parallels bullish movements in automotive index components. Traders eyeing short-cycle gains may target mid-cap dealerships riding this consumer credit wave, mindful of inventory turnover metrics. More than 1-in-5 car buyers who financed their purchase took out loans stretching seven years or more, with Edmunds analysts reporting that 84-month or longer loans made up 22% of new car loans in the third quarter. That's down slightly from 22.4% in the last quarter, but is higher than the 18.5% reported in the third quarter of 2024. There are a few reasons a financial institution can reject your auto loan application, including a low credit score, a high debt-to-income ratio or not enough verifiable income. The intersection of 0 APR car finance and declining lending spreads creates an environment conducive to stock appreciation in retail auto sectors. Portfolio managers are adding exposure to names benefiting from volume growth supported by zero-interest offerings.