4 ms·

If you can get 0% apr for 60/72 months, why not do that? Also seems like there is more negotiation done when financed vs cash. https://www.carfax.com/blog/0-ap

by iab 5y ago

If you can get 0% apr for 60/72 months, why not do that? Also seems like there is more negotiation done when financed vs cash. https://www.carfax.com/blog/0-apr-car-deals https://www.carfax.com/blog/0-apr-car-deals

brundolf 5y ago
I didn't even realize 0% was possible (this would be my first time actually shopping for a car)
- iab 5y ago
  Not always available for every model, and obv. credit-score has to be pretty good. good luck!
- pickle-wizard 5y ago
  Yes, but sometimes the low interest rate financing is in lieu of rebates or discounts. You have to run the numbers both ways. Sometimes it is cheaper to pay the higher interest rate, and take the discounts and rebates. Before going to the dealer, I recommend check with your local credit unions, and getting approved for a loan. They usually have pretty low rates. If the dealer can beat that rate, go with the dealers financing, otherwise use your credit union financing.
spfzero 5y ago
It’s not really a zero percent loan. To test that, tell the dealer you are paying cash, make your best deal, and then at the last minute say you changed your mind and want a zero percent loan for the same price. See how that goes. The money that goes to purchase your car, is invested money that earns a non-zero return, whoever it comes from. If you have the cash, you be that investor, and you earn the return. The manufacturer, and the dealer, have a bunch of dials they can twist to get the most money out of you while convincing you that you are getting a good deal. It’s win-win, except you don’t actually win. Paying cash takes the dials away. They do this dozens of times a day, every day, and they don’t play to lose money. You’re not going to beat them.
- iab 5y ago
  It still is a zero percent loan, though. The price that you pay for the car isn’t the same, I agree, but the loan is 0 percent. The OP wants a way to preserve capital for other investments, so paying cash upfront defeats the purpose.

by iab 5y ago

brundolf 5y ago

I didn't even realize 0% was possible (this would be my first time actually shopping for a car)

iab 5y ago
Not always available for every model, and obv. credit-score has to be pretty good. good luck!
pickle-wizard 5y ago
Yes, but sometimes the low interest rate financing is in lieu of rebates or discounts. You have to run the numbers both ways. Sometimes it is cheaper to pay the higher interest rate, and take the discounts and rebates. Before going to the dealer, I recommend check with your local credit unions, and getting approved for a loan. They usually have pretty low rates. If the dealer can beat that rate, go with the dealers financing, otherwise use your credit union financing.

spfzero 5y ago

It’s not really a zero percent loan. To test that, tell the dealer you are paying cash, make your best deal, and then at the last minute say you changed your mind and want a zero percent loan for the same price. See how that goes. The money that goes to purchase your car, is invested money that earns a non-zero return, whoever it comes from. If you have the cash, you be that investor, and you earn the return. The manufacturer, and the dealer, have a bunch of dials they can twist to get the most money out of you while convincing you that you are getting a good deal. It’s win-win, except you don’t actually win. Paying cash takes the dials away. They do this dozens of times a day, every day, and they don’t play to lose money. You’re not going to beat them.

iab 5y ago
It still is a zero percent loan, though. The price that you pay for the car isn’t the same, I agree, but the loan is 0 percent. The OP wants a way to preserve capital for other investments, so paying cash upfront defeats the purpose.