I'm talking about the total price of the car, cause I heard that sometimes there are catches for that so advertized "0% APR" and the buyer can't negotiate the total price down with that interest. The credit union is offering me 7% APR for a new car because of my good credit score. please only serious answers.
2007-08-10 04:30:36 · 9 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
Think of it this way, it is a motivational tool used to lure in buyers, it is not built to work to your advantage.
You are likely better off getting your own loan and taking the rebate.
determine what your total end cost would be (after the finance charges) from the credit union when purchased with the rebate.
Compare that to what it would be if you purchased the car at 0% financed through the dealer.
For me, financing with an outside source and the rebate was a much much better deal. I saved thousands. Of course, rates where lower then...
Good luck. It's not just in the financing. Don't buy on impulse - compare a few dealers. We went through five dealers on both cars before finding the deal that worked best for us. Between the sale price and the trades, we saved almost 20K.
Talk them down. This time of year is good for you, they need to unload all the 07 models. Make sure you get across to them that you know they are losing money (depreciation ) on the vehicle sitting on the lot. This is the reason for a promotion/rebate. The last thing you want to do is get into a situation wherein you drive off the lot and loose $$$$$$. Offer them $100 over wholesale invoice, if they say no, give them your number and Walk out. Don't get shmoozed into giving your money away. Don't be had. Tell them they can move a car right now, and makeup the money on the next buyer.
2007-08-10 04:47:46 · answer #1 · answered by stoptheBS 2 · 1⤊ 1⤋
First off, 0% is not a scam. It is a purchasing option. There is usually an option, such a $2,000 or 0%APR. What you will want to do is have the payment figured using the 0% without the cash rebate and compare it to 7% and the cash. The results are not always the same becuase it depends on how much you are financing.
For instance, if you are only borrowing $10,000 (this may happen if your trade has a lot of equity or you have a large down payment) and have the option of a $3,000 rebate or 0%, you would want 7% because you will save more money by paying the interest, since it will be less than $3,000 total. The sales associate will be able to have payments for both methods. If not, then go to www.bankrate.com and use the auto payment calculator and see for yourself.
If the payments are close, then take the cash, not the 0%. The reason is because you will have a lower balance, which will be beneficial in the event of a total loss, or if you want to trade out of the car. Good Luck and you can email for questions.
2007-08-10 05:21:57 · answer #2 · answered by The Auto Evaluator™ 7 · 8⤊ 0⤋
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2016-09-26 09:00:31 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Advertised 0% is not a scam at all.
There are certain things to consider before agreeing to 0%. Many mfg offered low financing in lieu of rebates, that means you get either the rebate or low financing. Some actually offer both. Work the numbers for every program they offer. That'll tell you which to go with. With rates as high as they have been, the lowest i've seen is 5.5 at a credit union, it's probably best to go with the 0%. But again, it all depends, i don't have the programs or numbers to work out, but there is a clear advantage when worked out properly/.
2007-08-10 07:37:01 · answer #4 · answered by jay 7 · 1⤊ 0⤋
My truck cost me $1000 more with 0%, but that was less than the interest for 3 years, so I took it. But you have to compare the costs.
If you do happen to come into some money in the next while, the Credit Union will probably let you pay down their loan , and thus save yourself some more.
2007-08-10 04:44:27 · answer #5 · answered by jimanddottaylor 7 · 1⤊ 0⤋
A lot of time the choice is either to take advantage of the savings that the car company is offering or accept the 0% loan. What you need to do is set up an amoritization schedule for both circumstances and see which scenario will give you the results you desire. Often times you can search amoritization schedule online and fill in the figures and it will provide you with the answers you desire, including the payment.
2007-08-10 04:42:05 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Basically the 0% financing is a scam. You can pay a higher price with 0% financing or pay a lower price with regular financing. So you can pay $3000 more for the car or $3000 in interest. Sometimes that 0% is only for two years.
If you can finance it with a good interest rate and can negotiate a low selling price you will do better with the credit union loan.
.
2007-08-10 04:41:16 · answer #7 · answered by Jacob W 7 · 1⤊ 3⤋
Go to the new car dealer and ask. You need to know the terms of the contract. and the monthly payments... Then compare it with the CR... If you do not ask you will not know about zero percent financing... Get it straight from the horses mouth...
2007-08-10 04:38:04 · answer #8 · answered by Gerald 6 · 0⤊ 1⤋
I accept that this is an intelligent, brilliant question. But I answer only stupid questions.
2007-08-10 06:18:24 · answer #9 · answered by Anonymous · 0⤊ 1⤋