4 ms·
Yea, for sure. I got a 0.5% loan on my first car and had a moment when I had some spare cash and realized "Wait, I'm essentially being paid money to have this l
by noirbot 4y ago
Yea, for sure. I got a 0.5% loan on my first car and had a moment when I had some spare cash and realized "Wait, I'm essentially being paid money to have this loan after inflation" and there was no reason to really pay it off quicker vs. just saving/investing the money.
- seanmcdirmid 4y agoWhat was your loan origination cost? Usually, when the rate is that low, the catch is that you paid $1k to $2k for the loan. This really annoys me...like, the higher interest rate with the lower loan fee would be OK since I'm going to pay the loan off quickly anyways.
- everybodyknows 4y agoFurther to that, was the price agreed to before the salesman knew how you would paying, cash or credit?
- Godel_unicode 4y agoYou get the best deal (lowest total cost) by finding out which bank pays the highest financing incentives to the dealership (by asking the dealer), financing the car through them, then paying the whole loan off immediately. It’s all part of the negotiation.
- everybodyknows 4y agoFascinating. Highest financing incentive suggests a commensurately high interest rate. Can we assume there's no pre-payment penalty hidden in the contract?
- Godel_unicode 4y agoYou should check, but generally pre-payment penalties on loans have become pretty rare.