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#4255340 - 05/03/16 03:45 AM 0% interest car financing? Really?  
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Linebacker Offline
LB
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YYZ
Seems too good to be true! Ive never had regular car payments since Ive always bought used cars/trucks straight out with whatever cash I had available.

With this 0% interest phenomenon, Im at a point in my life where I couldnt care less if I eventually own the car or not. Is leasing the best bet? For how many months?

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#4255342 - 05/03/16 03:53 AM Re: 0% interest car financing? Really? [Re: Linebacker]  
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Borrower is slave to the lender.

We bought two cars last year...a Mustang GT vert and a Honda Odyssey. We drive cars forever and pay cash. I wouldn't buy anything I didn't pay for in full.

Sure, the math says make payments with free money. I'm advising not to do that. There is more to financial peace than math. It is a way of life and intentional behavior through ingrained and repeated reverence toward what God has given you. Loans, especially for things like cars, are anathema to that and will keep you from becoming truly financially secure. Trust me I've done it both ways.

Just my $.02. I felt I had to respond because I quite literally got back from teaching FPU at church just an hour ago.


"For I know the plans that I have for you," declares the Lord, "plans for welfare and not for calamity to give you a future and a hope." Jeremiah 29:11

Blessed are you when people insult you and persecute you, and falsely say all kinds of evil against you because of Me. Matthew 5:11

Indeed we call blessed those who have persevered. You have heard of the perseverance of Job, and you have seen the purpose of the Lord, because “the Lord is compassionate and merciful. James 5:11
#4255343 - 05/03/16 03:57 AM Re: 0% interest car financing? Really? [Re: Airdrop01]  
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I appreciate that Airdrop ... but I can't overlook that crazy 0% interest thing. smile

#4255344 - 05/03/16 04:09 AM Re: 0% interest car financing? Really? [Re: Linebacker]  
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http://www.autotrader.com/car-tips/buying-a-car-whats-the-catch-with-0-percent-loans-222702

You will probably need excellent credit as in 750 or higher to the maximum of 850 and the 0% interest loan can be as short as 60 months or as long as 72 months.

Do you really want to pay on a car for a minimum of 60 months (5 years)?

Rule of thumb on car financing is never get anything longer than 36 months.

#4255345 - 05/03/16 04:12 AM Re: 0% interest car financing? Really? [Re: Linebacker]  
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Canada, eh!
No free lunch, if it's 0% you're paying more in the price. It's getting made somewhere else in the shell game. In instances like that, you'll get a better deal at the end of the day with a cash deal.

#4255350 - 05/03/16 04:41 AM Re: 0% interest car financing? Really? [Re: Linebacker]  
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I.E. Commiefornia ..S.B Count...
ask to pay 500 over invoice and 0% .. ask to see the invoice.. should be like 3k or something short of the sticker on an average car. They make the money on the front end (sticker) or the back end (higher interest) or the side end (extended warranty ect)

if you deal with the 'internet dept' they will cut to the chase a lot faster than the floor sales people..

games they will play..

1. tell you your credit sucks and they are doing you a favor at whatever %
2. tell you there is no room on the sticker to go down
3. make you pay for dumb azz sh1t like 'special wheels' or an alarm ect..
4. tell you its a 'special version' or that the unit is already spoken for..

I can go on and on.... but whatever you do--->DO NOT BE SCARED TO WALK AWAY... these bastards will actually let you walk nowadays and call you back that night or the next day to go with your deal... its not like the old days were they only let you walk half way to your car before accepting your deal.

I hate sales people..


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#4255351 - 05/03/16 05:19 AM Re: 0% interest car financing? Really? [Re: Linebacker]  
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I know that there are different approaches, and different people are comfortable with different things, but from a purely financial aspect, financing at a low or 0% interest rate actually makes more sense. Future dollars are almost always worth less than current dollars, so when you lock in a payment, you are actually paying less for it in the future than the cash up front would cost you.

For the last car I bought, I found one I liked, then left and did some research, and then went in and said I want a certain payment at a certain interest rate (I knew what the lowest was that I'd qualify for) and for the length of time I wanted, and all of that basically determined the price. My credit rating is good, and they basically just said "OK." I took that approach rather than haggle on price first to avoid arguing over interest rate, term, etc., after agreeing on a price - just knock it all out up front.

I also think they were a pretty good dealership - all of the reviews online were good, and there weren't any games or back-and-forth. They ran the numbers, confirmed my credit rating, and it was a done deal.


Ken Cartwright

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#4255353 - 05/03/16 05:48 AM Re: 0% interest car financing? Really? [Re: Arthonon]  
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i'm like airdrop, if i cant pay for it in cash, i dont get it. Yea you miss out on the super new and shiney stuff, but you dont risk loosing said new shiney thing if you cant afford the re-payments ... plus its cheaper in the long run!


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#4255366 - 05/03/16 07:35 AM Re: 0% interest car financing? Really? [Re: Linebacker]  
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There are legitimate reasons for a credit, like if you need a bigger home to run your own business that you can't do in your current premises or some such. Maybe even buying a car to commute to a new job. Taking a credit just because you want a shinier new car sounds like a stupid way to get in debt, even if it is at zero interest rate. Even if it is at near-zero, it would be a negligible factor: I mean, 1% on a 10,000.- loan that's two hundred extra in the three years that you're paying it off at 300 a month or so.

So, the interest rate level is so low, whether it's 1% or .5% or 0% should be irrelevant. Decisions like "credit or cash" should be determined by other factors. One way or the other, the car dealer wants to make his cut, and there's just no way around that as long as you're dealing with a minimally competent seller.

0% ! OMG !!1!11! is a marketing slogan that's supposed to appeal to the "hey, it's free!" trigger in our brains, just the way how you lure animals into a trap with "free food". We're wired that way, but that doesn't mean we need to remain slaves to our impulses.

#4255388 - 05/03/16 11:13 AM Re: 0% interest car financing? Really? [Re: Linebacker]  
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Originally Posted By: Linebacker
but I can't overlook that crazy 0% interest thing. smile


Haven't you heard? The economy is doing great!! That's why interest rates are at zero or near zero percent.....


“Whoever fights monsters should see to it that in the process he does not become a monster. And if you gaze long enough into an abyss, the abyss will gaze back into you.”
#4255412 - 05/03/16 12:49 PM Re: 0% interest car financing? Really? [Re: Linebacker]  
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Depending on the model of car and your personal circumstances a new car can be better value then buying a nearly new model.
New cars can give better mileage then used cars there's a saving straight away, can cost less on road tax a very big factor in my country. Also some manufactures offer 3/5 years warranty. you wont get that on a used model. in my country when new cars sales figures are down they have a scrappage schemes where basically if you have a car ten years or more old you can trade it in and Pay little or no sales duty. most of the big names add there own deals like very low interest rates on loans etc.

#4255419 - 05/03/16 01:23 PM Re: 0% interest car financing? Really? [Re: Linebacker]  
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marko, just bought an nearly new Elantra (2015 with 14,000km) and got the full warranty.


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#4255428 - 05/03/16 01:42 PM Re: 0% interest car financing? Really? [Re: Linebacker]  
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Pay with cash. Buy the slightly used car thats 2-3 years old. Grin repeatedly knowing how much money you have saved for more important things than a "brand new" car.


"For the scientist who has lived by his faith in the power of reason, the story ends like a bad dream. He has scaled the mountains of ignorance; he is about to conquer the highest peak; as he pulls himself over the final rock, he is greeted by a band of theologians who have been sitting there for centuries." - Robert Jastrow
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#4255430 - 05/03/16 01:48 PM Re: 0% interest car financing? Really? [Re: KraziKanuK]  
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Originally Posted By: KraziKanuK
marko, just bought an nearly new Elantra (2015 with 14,000km) and got the full warranty.



Big dealerships often offer deals like that with ex fleet cars and rentals I bought one my self once.
In my case saved about 3k from the new price. but I made a major fubar it was raining on the day I bought it.
When I first went to wax it found a few micro scratches and even a small dent I missed when buying it.
in such circumstances and if your not financing the purchase there a good buy.

Last edited by marko1231123; 05/03/16 01:53 PM.
#4255458 - 05/03/16 03:03 PM Re: 0% interest car financing? Really? [Re: Linebacker]  
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Normally I buy new, I like to be the one that <cough> breaks them in. wink

We did buy a 10-year old ~100k mile mid-80's Acura Integra LS coupe from my wife's boss, this woman had taken excellent care of the car the way we do and had also kept all the maintenance paperwork and such. We just couldn't pass it up, and I still miss those cool popup headlights.

So I'll buy used if it's from a person I know, otherwise I'd rather buy new and know the car's history. The last two cars I've purchased hadn't even been "unwrapped" from the factory yet.

++++++++++

I don't mind financing, usually putting half down and financing the other half for either 3 or 4 years at less than 2% (I believe in 2008 the best rate was 1.8% - with all credit scores being over 800). But then we've never paid over $20k for a new car, the last two were right under.

My '89 CRX Si and '99 Civic Si had to be new, I'd seen what people do to these cars and how they drive them, no way I was going to buy a used one. Both very good cars and I gave them up still looking and running almost showroom new.

For our 2008 Element EX, we already had the invoice numbers from Edmunds, told them exactly what we wanted and what we were going to pay. Wife worked with the finance guy to make it happen, she's really good with numbers (always catching their "mistakes") and is a tough negotiator.

Got everything we wanted (including flaps and luggage bars which were installed the next week) except for a luggage container which was almost $400.00, IIRC. We let it slide as the entire process for the first time ever was quick and painless. I ended up buying the exact same container (same brand name and capacity, minus the "H" that Honda slaps on it) for less than $200.00 new, buying direct.

I hope the next car buying experience is as painless as the last one and that it wasn't just a fluke.

#4255462 - 05/03/16 03:10 PM Re: 0% interest car financing? Really? [Re: Linebacker]  
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I have a similar opinion on buying new Mark. If it's a cheap daily driver, that is generally a mellow sort of car, I will buy used. But if it's something sporty, I know what people drive them like, and I'd rather have it be new, so that I know it's not been thoroughly abused.


Ken Cartwright

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#4255465 - 05/03/16 03:26 PM Re: 0% interest car financing? Really? [Re: Linebacker]  
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I find going to the care dealership raises my blood pressure to dangerous levels. I have never been in the position to pay cash for a car, so I have to finance. I find that when I finally make a deal, I am exhausted and disgusted. Having a long commute to work is a variable that makes it hard to win out. Put 25% down on a four year loan, and you still lose. By the time you are at the half way point of the load, repairs and maintenance start to creep in. One of the earlier threads was about man skills. I think car buying negotiations should be one of them. I wish I were better at it.

#4255485 - 05/03/16 04:09 PM Re: 0% interest car financing? Really? [Re: Linebacker]  
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Just don't forget that you're the customer, and they can't force you to give them your money. I have always gone into the dealership and looked at cars, then walked out and done some research on what I saw before going any further. It let's me get more info on the cars and tells them I'm not going to be talked into buying it. The tough part is knowing what to pay for a given car with a given set of options, because it just seems like it's so obfuscated.

It's a lot of money so I spend time researching on the Internet to learn as much as I can about a car I'm interested in, and it's pricing. There are no guarantees that you'll get a good deal, but that usually increases the odds. The last new car I bought I got for about $7K under sticker, and $1K-$2K below what the research sites said was a good deal on that car with those options, so I don't think I got ripped off, but again, it's hard to say for sure because they do so many tricks with the pricing info.


Ken Cartwright

No single drop of rain feels it is responsible for the flood.

http://www.techflyer.net

#4255493 - 05/03/16 04:27 PM Re: 0% interest car financing? Really? [Re: Linebacker]  
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PanzerMeyer Online centaurian
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I bought my 2005 Toyota Corrola when it was brand new and I'm still driving it and plan on keeping it until it disintegrates. I love not having a monthly car payment. smile


“Whoever fights monsters should see to it that in the process he does not become a monster. And if you gaze long enough into an abyss, the abyss will gaze back into you.”
#4255558 - 05/03/16 06:45 PM Re: 0% interest car financing? Really? [Re: Linebacker]  
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Borrowing money to buy a larger house (assuming you can actually afford it) is NOT the same as buying a car. Houses tend to go UP in value as a general rule, cars depreciate...and unbelievable fast if you buy new. The 'zero percent interest' is just another sales gimmick. The dealership is going to make up the difference somewhere.

With the exception of real estate, if you don't have the cash to buy it, you really can't afford it.

Airdrop, good for you on teaching FPU. I hope you have a good class. I look forward to hearing some of them do their debt-free scream one afternoon.

Last edited by vocatx; 05/03/16 06:46 PM.

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