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Thats not really readily available and when it was it was often better to take the discount instead
Yes it is, about every other month most car manufacturers offer 0% and usually the discount along with it...it depends on the discount if it's worth taking or not but why take money out of interest earning accounts to pay cash for a car when you can finance the car for 0%???
Just doing a quick search right now Toyota has 0%, no "cash back offer" but an additional $500 off if you take the 0%. Ford had 0% and $1500 off or the option of $4500 back. Depends on the interest rate you are getting whether the cash back option is better or not. But, if you took your money out of a well performing mutual fund, you would end up losing over $4500 in growth over a 5 year loan so, it's still a better deal to keep the cash and take the 0%.
Yes it is, about every other month most car manufacturers offer 0% and usually the discount along with it...it depends on the discount if it's worth taking or not but why take money out of interest earning accounts to pay cash for a car when you can finance the car for 0%???
Just doing a quick search right now Toyota has 0%, no "cash back offer" but an additional $500 off if you take the 0%. Ford had 0% and $1500 off or the option of $4500 back. Depends on the interest rate you are getting whether the cash back option is better or not. But, if you took your money out of a well performing mutual fund, you would end up losing over $4500 in growth over a 5 year loan so, it's still a better deal to keep the cash and take the 0%.
0% isnt readily available across the market, I didn't see the op say they wanted a toyota or ford.
Also on a 30k purchase 4500 off @ 4% interest is a better deal than 1500 back and 0% . It's cheaper monthly and overall and the lower the rate on the first deal the better, if you can qualify for 0% through tfs or fmc you can do better than 4%
0% isnt readily available across the market, I didn't see the op say they wanted a toyota or ford.
Also on a 30k purchase 4500 off @ 4% interest is a better deal than 1500 back and 0% . It's cheaper monthly and overall and the lower the rate on the first deal the better, if you can qualify for 0% through tfs or fmc you can do better than 4%
Not if you take into consideration how much you would lose taking that 30K out of your investments over the 5 years of the loan or whatever.
Chevy
Chrysler/Dodge
Nissan
GM
Toyota
Ford
All have 0% right now. Honda has .9%.....I quit looking so there are probably more....yes, 0% financing is available across the market and if you have the money to pay cash for a 30K vehicle and your credit score isn't good enough to qualify for the 0%, you are doing something very wrong....
Not if you take into consideration how much you would lose taking that 30K out of your investments over the 5 years of the loan or whatever.
Chevy
Chrysler/Dodge
Nissan
GM
Toyota
Ford
All have 0% right now. Honda has .9%.....I quit looking so there are probably more....yes, 0% financing is available across the market and if you have the money to pay cash for a 30K vehicle and your credit score isn't good enough to qualify for the 0%, you are doing something very wrong....
When I said take the discount instead I didn't say and pay cash, in fact in the post you just quoted it should have been rather obvious. It does appear I was wrong about availability though, strange I just don't notice the same level of advertising for it that they pushed years ago when everyone was offering it
Last edited by Lowexpectations; 06-27-2015 at 06:37 AM..
I've always wondered about the idea of taking the 40K that would have paid for the car upfront, but instead, put the 40K in an account, and go for the 0% financing with an automatic draw on the account with the 40K......no worries about the payment, but if an emergency comes up, you can go back to that account.
If the financing is truly 0%, if you would buy the same car and the same insurance anyway, and if you don't forgo any added discounts, then yes, take the 0% and hang on to your money as long as possible. If any reason arises to pay off the loan (for example to reduce DTI to get a home loan), you can stroke a check.
Of course this may not be suitable for those with lack of discipline.
If the financing is truly 0%, if you would buy the same car and the same insurance anyway, and if you don't forgo any added discounts, then yes, take the 0% and hang on to your money as long as possible. If any reason arises to pay off the loan (for example to reduce DTI to get a home loan), you can stroke a check.
Of course this may not be suitable for those with lack of discipline.
......my other thought is that at the end, you'll still have a little change in the account from the little interest gained over the period of the loan.
Don't discuss anything till you've negotiated the final price.
Then you can avoid the dog and pony show.
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