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I got a 0% loan for a 6 year term on a new car in mid 2016. I think it was a great idea, effectively was given a discount on the car on top of the negotiated pr
by thatfunkymunki 8y ago
I got a 0% loan for a 6 year term on a new car in mid 2016. I think it was a great idea, effectively was given a discount on the car on top of the negotiated price at that rate.
- kazinator 8y agoYou think, but anyone who walked into that dealership with cash would have gotten a better deal on exactly the same car, and so would someone who goes for non-zero-% financing. There is no free lunch; you're not going to get a better financed deal than someone who pays and waves goodbye. There is no 0% financing without a catch.
- smileysteve 8y agoA large part of the bank's equation is that the average American will miss a payment (changing the 0% rapidly) Also that these are full recourse loans, the bank gets the auction value of the car and has the defaulter in collections for at least the remaining (before depreciation) amount