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0%APR Auto loans

D

dquan97

Lifer
Looking at financing offers in the newspaper, I see an increase in the number of dealerships offering 0% APR. I realize that the customer needs to have a good credit score (>660) to score one. Aside from sales tax, is there any other mandatory costs to owning a car this way?

2nd question: what's your opinion on gap insurance? Is it worth getting for $500?
 
Gap insurance is good if buying a car that looses it's value quickly. Don't buy it from the dealership though, talk to your insurance agent.
 
its usually better to take the rebate than the 0% offer and financing through a bank.

gap insurance is worthwhile if you owe more on the car than the car is worth. most of the 0% offers have either the 0% or the huge rebate, after the huge rebate there shouldn't be a gap.
 
Are you sure the minimum credit score is 660? That seems pretty low.

I'd guess closer to 680 or even 700+, it's difficult (for people like myself with over extended credit) to score a 0% for 3 year car loan.

The only costs are TTL (tax title license) which in Oregon was $113 as of last summer.

I have loan gap insurance through American Family which costs an extra $5 per month and it's worth it for me. Let's say my car gets totalled, loan payoff is $16,500 they determine it's only worth $14,000 I'm stuck with the difference of $2,500 I just had a car accident the last thing I want to worry about is coughing up $2,500 So with loan gap insurance they payoff the ENTIRE loan regardless of the vehicle's value. They did have to inspect our Honda Accord, which was a quick 2 minute walk around then I was ok'd for loan gap ins.
 
I didn't realize that gap insurance can be purchased from a third-party (auto insurance broker). Would they be able to provide the coverage at a better price than the dealship?

I'm planning on buying my wife a newer Civic or pickup once she finishes her teaching credentialing program. In the meantime, we share one car and she bikes/buses to work and school.
 
i got gap insurance through the credit union and they financed into the car loan..gap insurance was only 200 bucks..
 
There should be no other cost unless you want it to be. Most people let the dealer get the plates for the car, and dealers charge you at least double what it would have cost if you did it yourself. Don't let the dealer put any extra stuff on the car that didn't come from the factory. They want to add it for a reason, and that reason is they know they can get you with the old "we will just add it into your payment" line. That's fine as long you've done your homework, and know the price of what you are getting. Don't pay list or more for something just because they will work it into your payments.

Gap insurance is a big ripoff if you are buying a car. I think your odds would be better if you took the $500 and bought lottery tickets with it.
 
Originally posted by: Xiety
Can someone with a credit score of 720 get a 0% APR loan?
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Yes -- IF it's available.

IIRC, discounted manufacturers financing is available on new cars at 660 and above with income documentation and 720 and above with stated income on application, but then this varies somewhat by manufacturer.

Gap insurance is only useful if you are upside-down in the vehicle. Buy it ONLY from your regular auto insurance agent, it should be roughly $5/mo.
 
Originally posted by: Muadib
There should be no other cost unless you want it to be. Most people let the dealer get the plates for the car, and dealers charge you at least double what it would have cost if you did it yourself. Don't let the dealer put any extra stuff on the car that didn't come from the factory. They want to add it for a reason, and that reason is they know they can get you with the old "we will just add it into your payment" line. That's fine as long you've done your homework, and know the price of what you are getting. Don't pay list or more for something just because they will work it into your payments.

Gap insurance is a big ripoff if you are buying a car. I think your odds would be better if you took the $500 and bought lottery tickets with it.
Click to expand...
😕 I don't know about Jersey, but in most states for the dealer to charge more for license and registration than what the DMV charges is a felony. Most states also require that the dealer do the DMV paperwork as well -- the customer is not allowed to do it themselves.
Gap insurance from your regular auto insurance company is usually a good deal. From the dealer, yes, it would be a ripoff, especially at $500.
 
I had a friend of mine buy a used Mitsubishi Galant for the dealership and paid an additional $1200 for a 3yr warranty and $500 for gap insurance. He turned down the roadside assistance for $200/3yrs and the paint protection.

Which service accessories are recommended for a used car (ie Toyota)?
 
Originally posted by: dquan97
I had a friend of mine buy a used Mitsubishi Galant for the dealership and paid an additional $1200 for a 3yr warranty and $500 for gap insurance. He turned down the roadside assistance for $200/3yrs and the paint protection.

Which service accessories are recommended for a used car (ie Toyota)?
Click to expand...

none, you'll get raped on those

your friend got taken for $1700
 
The manufacturers allow the dealers tremendous amount of flexibility on this. I helped a friend bought a Chevy truck at 0% for 5 years with a credit score of only 645. Even though the owner of the dealership is a patient of my dad for the past 25 years, I don't think I got any special treatment other than the usual courtesy.
 
Originally posted by: ElFenix
Originally posted by: dquan97
I had a friend of mine buy a used Mitsubishi Galant for the dealership and paid an additional $1200 for a 3yr warranty and $500 for gap insurance. He turned down the roadside assistance for $200/3yrs and the paint protection.

Which service accessories are recommended for a used car (ie Toyota)?
Click to expand...

none, you'll get raped on those

your friend got taken for $1700
Click to expand...

How much do you think maintenance costs per year? I'd think over three years, he'd make his $ back
 
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