I am wondering why all these american car companies offer 0% for 60 months, and finance companies for Honda does not offer the same? I know Honda and Acura Toyota are much better cars, but shouldn't we be able to get that financing even with a foreign car?
2006-10-27 13:21:48 · 5 answers · asked by Questions Questions 2 in Cars & Transportation ➔ Buying & Selling
The 0% finance is a fiction. If you check the fine print, you will discover that you have a choice of 0% finance, or a cash rebate. If you do not take the cash rebate, the amount of the rebate is basically a prepaid finance charge. The only way to tell for sure what is going on is to get all the details of each deal and compare them with a financial calculator such as an HP-12C.
2006-10-27 13:29:39 · answer #1 · answered by Anonymous · 0⤊ 1⤋
They arent necessarily better cars but public perception and resale values point to asian cars retaining and perhaps widening their dominance in resale value. Its desirability therefore that causes the import manufacturers such as toyota, honda, nissan to offer less or no rebates or APR financing programs. GM, Ford and Chrysler are all in deep trouble because of Unions and sins of the past...they do what they can to keep factories working. Nissan is probably the most generous of the 3 however if finance rate is so important and you like to drive a new car every few years you should consider leasing. Leasing's money factor is a great way to make finance expense a non-issue.
2006-10-27 14:06:45 · answer #2 · answered by Johnny 7 · 0⤊ 0⤋
The days of %financing are coming to an end. It costs the big 3 lots of money to have the program and that translates into higher MRSP's. It is a way to get rid of inventory but destroys resale value because consumers go for these cookie cutter cars and the value drops considerably. If the Big 3 whereto price their cars and charge normal rates. You would see MRSP drop by at least 10%.
2006-10-27 13:56:15 · answer #3 · answered by ? 7 · 0⤊ 0⤋
It is because US car manufacturers need your business. Foreigh car manufacturers (Japanese, Korean etc) can manufacture cars more efficiently and cheaper, and they are reliable. USA car manufacturers are using incentives to maintain there market share. And 0 down financing usually results in higher interest rates on the borrowed money, so they are actually making more money that way.
2006-10-27 13:25:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The reason is simple.... they don't have to.
But they do have low financing specials, usually at the end of the model year. Honda had 2.9% on their 2006 SUVs.
2006-10-27 13:33:55 · answer #5 · answered by Anonymous · 0⤊ 0⤋