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OT question: why does a car with financing cost less (summing up all the monthly payments) than a car paid cash?
by ced 8y ago
OT question: why does a car with financing cost less (summing up all the monthly payments) than a car paid cash?
- dangwu 8y agoI’ve never seen this before. With 0% APR they should be identical. Are you missing an initial down payment?
- larrydag 8y agoIt shouldn't. In fact it should be more since there is interest. I'm guessing there are some fees involved.
- deleted 8y ago[deleted]
- toast0 8y agoManufacturer financing is weird. You might be eligible for some rebates only if you take manufacturer financing. The financing arm may be trying to get more loans on the books in general, or specifically good credit loans, or ? Strange incentives all around.
- larrydag 8y agoGreat point. Manufacturers are interested in moving inventory. Not so much with making money on loans. So they will take a small margin or even a loss on the loan as long as it sells the car.