2006-08-26 06:14:01 · 8 answers · asked by cherish_ferguson 2 in Cars & Transportation ➔ Buying & Selling
$1 down has nothing to do with whether or not you are getting a good deal.
If you have decent credit, you could pay nothing down.
If buying a car, focus on getting approved for your loan through a credit union or bank (before going to the dealer) and get some insurance quotes from your carrier on the car you are interested in before you actually buy it.
When the dealer runs your credit and hits you with a 13% interest rate, you will be glad you got pre-approved.
2006-08-26 06:20:13 · answer #1 · answered by Stupid Flanders 7 · 0⤊ 0⤋
The initial 1 buck is nothing compare to what the agent will get as commission from all the interest they charge. For eg. Your car cost $10000. Interest from bank is 2% per yr. Which is $200. The bank will want you to stay with them as long as possible. SO they will say 10yr instalment and i will charge u 1.5% a yr . Rather than 2%. Of course you will want the cheaper instalment. Back to to agent....the bank will give a cut of share of the interest if the buyer intends buy and also take up the instalment plan. SO don't be fool by $1 down.
2006-08-30 02:03:01 · answer #2 · answered by bongsterlee 1 · 0⤊ 0⤋
It's a marketting gimick intended to draw in customers. They get you to buy something you can't afford right now, and then later on, sock you with high interest rates that force you to pay a lot more than the initial selling price as you pay the thing off.
My advice is to check your budget and make sure you can pay it off before the no interest period runs out. Otherwise, skip it and save up instead. At least then, in your savings account, the money is earning interest all that time.
I'm assuming here that this is a small item like a stereo or something. If it's a larger one, like a car, well, my advice would be different.
2006-08-26 06:23:41 · answer #3 · answered by Lendorien 2 · 0⤊ 0⤋
Depends. If you don't have a large downpayment to put down on a car then it is.
But you end up paying more in finance charges because you are financing a larger amount of money.
Is it a ripoff? No. They aren't forcing you to, you can always put down 50% if you'd like.
2006-08-26 06:22:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋
a dollar down on what,,you forgot to add the rest of the question on here,, i have been a mechanic for 35 yrs,,but i have not learned to read minds yet,,if you will add more info,,the next time you ask a question,,you will get a more and better answer.sorry i couldn't help this time.
2006-08-26 06:20:02 · answer #5 · answered by dodge man 7 · 0⤊ 0⤋
We have the perfect analogy in the car business.....this is called "phone sex'....they are just trying to get you to come!!.........as one of the earlier answers stated it is just a gimick to get people in..it is surprising how many 'suckers" are our there.....hell with good credit I can get you done with "0" down ......expect to be worked and/or switched......if it sounds too good to be true it probably isn't...rembember that one..........beware of alligator bearing fruit....remember that one also........good luck!!
2006-08-26 06:46:32 · answer #6 · answered by Mickey Mantle 5 · 0⤊ 0⤋
The dealer wants you to finance as much as he can get you to do because he gets a kickback on the loan.
2006-08-26 06:50:53 · answer #7 · answered by Anonymous · 0⤊ 0⤋
It's all gimmicks....you usually don't need any money down...
2006-08-26 08:44:45 · answer #8 · answered by jgordon0505 2 · 0⤊ 0⤋