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[quote=Anonymous][quote=Anonymous]I have a related question about the value of refinancing if you could pay cash?  I get the theory that with 0% interest you might as well take the financing.  But I feel like there must be a catch.  Isn't the total cost purchase price of the car higher?  [/quote]

Yeah, like PP said, it's all an incentive to get you to do something else. If you come in with 3% from your bank and your dealer offers you their "special connection" to their preferred bank for 2.8%, it's because there's some kind of incentive involved from the bank to the dealer for steering loans to them. You pocket the .2% and the dealer gets whatever they get from the bank.

The "specials," like 0% for 60 months or whatever, are exactly what PP said, an attempt to get you to upgrade. This is why car salesmen love to get you to negotiate on your payment rather than the actual price of the car. "With the 3% from your bank that you were planning on using, you'd be paying X per month. But now that we're giving you 0%, you're saving $80 a month, so the Premium model is now in your budget!" But if you don't fall for it, there's no catch. [/quote]

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