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Being as how you can finance a new car for 0% interest, why would you pay cash? Sounds like you're giving terrible advice.

gregimba 8y ago
You do realize profit is built into a 0% loan right? Its essentially an upfront interest payment for the duration of the loan.
- Driverswanted 8y ago
  What on earth do you mean. Have you ever bought a car? You negotiate the price you are willing to pay. The dealer has no idea if you are leasing, paying cash, or financing. The all-in price is either financed or leased at a specified interest rate. They do not "add in" an up front payment. That doesn't even make sense, and would be incredibly misleading. If we negotiate $25,000 for the car,and I finance at 0%, you are saying they up the price to $27,500 to "build in a profit"? Nonsense. The numbers are in front of you and you can do the calculations yourself with high school math. 0% is 0%. You are totally out of your element and shouldnt be providing financial advice. Maybe that's why the dealer rips you off.
  - smogcutter 8y ago
    You're wrong. Cash back rebate offers usually don't apply to the 0% apr deal, so the amount financed will be higher. Which option is better depends on the size of the rebate, what interest rate you can get outside the low apr deal, and the amount financed. Edmunds has a calculator if you need help with the high school math: https://www.edmunds.com/calculators/incentives-rebates.html https://www.edmunds.com/calculators/incentives-rebates.html
  - donarb 8y ago
    If the choice is between you getting a "sweet deal" or the dealer making a profit, you will lose every time. Rebates and magic 0% interest are designed to get you to sign on the dotted line without reading the fine print.
rsynnott 8y ago
Well, for a start, if you're looking to save money, you certainly shouldn't be buying a new car.
- justin66 8y ago
  That's not "certain." When market conditions change, you'll occasionally be able to get a new car for less than what you'd pay for a used one of the same type. Drastic changes in fuel cost and manufacturers discontinuing an unpopular model are the sorts of things that lead to this situation.

gregimba 8y ago

You do realize profit is built into a 0% loan right? Its essentially an upfront interest payment for the duration of the loan.

Driverswanted 8y ago
What on earth do you mean. Have you ever bought a car? You negotiate the price you are willing to pay. The dealer has no idea if you are leasing, paying cash, or financing. The all-in price is either financed or leased at a specified interest rate. They do not "add in" an up front payment. That doesn't even make sense, and would be incredibly misleading. If we negotiate $25,000 for the car,and I finance at 0%, you are saying they up the price to $27,500 to "build in a profit"? Nonsense. The numbers are in front of you and you can do the calculations yourself with high school math. 0% is 0%. You are totally out of your element and shouldnt be providing financial advice. Maybe that's why the dealer rips you off.
- smogcutter 8y ago
  You're wrong. Cash back rebate offers usually don't apply to the 0% apr deal, so the amount financed will be higher. Which option is better depends on the size of the rebate, what interest rate you can get outside the low apr deal, and the amount financed. Edmunds has a calculator if you need help with the high school math: https://www.edmunds.com/calculators/incentives-rebates.html https://www.edmunds.com/calculators/incentives-rebates.html
- donarb 8y ago
  If the choice is between you getting a "sweet deal" or the dealer making a profit, you will lose every time. Rebates and magic 0% interest are designed to get you to sign on the dotted line without reading the fine print.

rsynnott 8y ago

Well, for a start, if you're looking to save money, you certainly shouldn't be buying a new car.

justin66 8y ago
That's not "certain." When market conditions change, you'll occasionally be able to get a new car for less than what you'd pay for a used one of the same type. Drastic changes in fuel cost and manufacturers discontinuing an unpopular model are the sorts of things that lead to this situation.