0% APR

[Atrail]

Has anyone bought a car with this offer?
So when a manufacture offers 0%APR deals end of year clearance etc can you walk in a just start negotiating how much off MSRP for a purchase price?
Do they expect you to pay more since they are offering a finance incentive?

Any experience thoughts?

 

[coolred]

You should still be able to negotiate on price. Heck even when they offer rebates, you can always negotiate on price.

 

[alphatarget1]

You're still financing a depreciating asset...

 

[vi edit]

Originally posted by: alphatarget1
You're still financing a depreciating asset...

It's other peoples money. If you had $20,000 sitting in an account you'd be better off taking the 0% (assuming a rebate wasn't available equal to the interest you'd pay) and making payments off the $20,000 than you would be dumping the 20k and taking the monthly payments and putting them back into a savings account.

 

[TechBoyJK]

Originally posted by: vi_edit

Originally posted by: alphatarget1
You're still financing a depreciating asset...

It's other peoples money. If you had $20,000 sitting in an account you'd be better off taking the 0% (assuming a rebate wasn't available equal to the interest you'd pay) and making payments off the $20,000 than you would be dumping the 20k and taking the monthly payments and putting them back into a savings account.

qft. this is a rough explanation, but basically if you have a lump sum of cash in the bank, you should always try and borrow money at an interest rate at least a point lower than what you are earning on your lump sum... i'd rather be earning .0005% interest on MY cash in the bank, than giving the money away... because you are in an emergency and need the cash, you can just go get it. You don't have to borrow it in time of an emergency...

 

[ponyo]

I bought a car this past Feb on 0%. I negotiated strictly on price. Discount I got was about inline with what the market was at the time. 0% sealed the deal.

 

[Jawo]

I just got my Mazda6 with 0% interest on the same principle as TechBoyJK mentioned above. Usually they cap payments at 36 months, so payments will be higher (due to short term of payback). I would never pay cash for a car, debt is commonly accepted in the US these days and it will actually help your credit score (if you keep up with it). I still got it way below invoice.

 

[dustmann]

Originally posted by: Atrail
Has anyone bought a car with this offer?
So when a manufacture offers 0%APR deals end of year clearance etc can you walk in a just start negotiating how much off MSRP for a purchase price?
Do they expect you to pay more since they are offering a finance incentive?

Any experience thoughts?

A 0% apr is 99% of the time NOT a finance incentive. Unless you have the money in your pocket (or bank account) to pay it off, or you will have the money within one year, it's a horrible option. Usually they are just promotional offers (i.e. for the first year) and if the balance isn't paid by the end of that period, the accrued interest will get added to your balance (so, in practice, you really were paying 14% interest the whole time)

IMO you should never have to pay MSRP for a car. Unless it's in high demand, or you have a small town dealer and they can't afford to sell it cheaply, you can usually talk them down. Don't expect to walk in and get a deal that day, it takes time. Make some offers, and make a couple of suggestions to take your business elsewhere.

 

[Gillbot]

Usually the 0% offers only go out to at most 36 months. If you can't afford to pay the car off quickly the 0% usually isn't an option.

 

[Gibson486]

I was gonna try to get 0% APR for my Mazda 3. they claimed that my credit history wa snot long enough, but my score was very Good. They ended up giving me a tier 2 loan @ 1%. That said, they will usually negogiate first and then financing comes later.

i was still able to get a decent deal (couple hundred below invoice before my rebate).

 

[Pacfanweb]

They have 0% all the time for 60 and even sometimes 72 months. It's a great way to buy a new car if you want one.

Salesmen love these programs, and the finance people hate them. Expect to get worked extra-hard for extended warranty and gap insurance as a result.