IT WASN'T SO LONG

ago that auto-industry experts were predicting the death of those juicy 0% APR offers. They figured that as interest rates rose, manufacturers would be less willing to absorb the cost of interest-free car loans.

Turns out, those predictions were premature. These days, domestic and Japanese manufacturers alike are touting the return of the zero-percent deals. Ford Motor, for example, is offering 0% financing on most of its Ford models through May 1. Other manufacturers promoting 0% offers include Mitsubishi, Suzuki, Mazda, Hyundai and Toyota Motor. (European manufacturers never embraced the 0% deals and continue to avoid them.)

Why is 0% back? Because it works, says Mike Chung, an industry analyst at Edmunds.com. "It's attractive to manufacturers in the sense that it doesn't hurt the brand as much as a cash incentive would," he says. So even though it costs manufacturers more than offering cash back, 0% financing is the better way to move cars off lots.

In fact, today's 0% deals are arguably better than those we saw a few years ago in part because auto loan rates are higher. Three years ago, the average 60-month new-car loan rate was around 5.5%, according to Bankrate.com. These days, the average rate on the same loan would be 6.65%.

Another potential perk this time around is that the 0% financing is being offered on longer-term loans, says Jack Nerad, editorial director at the Kelley Blue Book. Several models, such as the 2005 Mitsubishi Eclipse and the 2006 Ford Expedition, for example, can be had at 0% APR for as long as 60 or 72 months, respectively. In previous years, 0% APR promotions were mostly limited to 24- and 36-month loans, he says.

Granted, not as many auto makers are offering 0% deals compared with the past several years, and of those that are, many aren't offering them on as many models. Today's promotions are mostly limited to cars that are more difficult to sell: Jeeps, gas-gulping SUVs, four-wheel-drive vehicles and other cars that are out of favor, according to Chung.

These are the latest 0% APR deals, according to Edmunds.com: