Anonymous wrote:

Anonymous wrote:FYI you’ll only qualify for that rate if you have excellent credit - otherwise there may be a bait and switch later (shorter term and/or higher interest rate)

IF you’re buying a car that holds value well the 84 months thing isn’t terrible and as long as there’s no prepayment penalty (there usually isn’t with cars) you can always pay more if you want. If you’re getting an Audi or Porsche you’ll been underwater (ie you’ll owe more than the car is worth) on the car for all 84 months.

I agree that an 84-month term note is a terrible idea. But the bolded shows a very depressing lack of knowledge of math. FFS, PP.

Explain please.

Anonymous wrote:FYI you’ll only qualify for that rate if you have excellent credit - otherwise there may be a bait and switch later (shorter term and/or higher interest rate)

IF you’re buying a car that holds value well the 84 months thing isn’t terrible and as long as there’s no prepayment penalty (there usually isn’t with cars) you can always pay more if you want. If you’re getting an Audi or Porsche you’ll been underwater (ie you’ll owe more than the car is worth) on the car for all 84 months.

I agree that an 84-month term note is a terrible idea. But the bolded shows a very depressing lack of knowledge of math. FFS, PP.

Anonymous wrote:

Anonymous wrote:As long as you can afford the monthly payment, paying a 0% loan over 84 months will do great things for your credit. I’d do it.

How will that help again? I never understand these counter intuitive credit tricks.

Creditors want to know you’re good at managing credit. That means having a track record of successfully paying installment loans on time. That makes them more confident about extending lines of credit to you.

This is why we put everything on credit cards and pay them off in full every month. It’s also why we have always had low interest car loans.

We have excellent credit and top of the line credit cards that pay huge dividends (Amex Platinum, Citi Prestige).

Anonymous wrote:As long as you can afford the monthly payment, paying a 0% loan over 84 months will do great things for your credit. I’d do it.

How will that help again? I never understand these counter intuitive credit tricks.

They don't want cash. I refuse to discuss how we will pay for it, got the best deal, and they were really pissed when we did not finance through them and handed them a bank check.

Anonymous wrote:

Anonymous wrote:For the 0% the purchase price will be more. Nothing is free.

That’s why you tell them you are paying cash at the start. Negotiate your price, then ask for financing. If they don’t give you the 0% you walk. They will probably call you in a few days if not agreeing on the spot.

You will get a better price not paying cash. They get incentives if you use their financing.

Anonymous wrote:

Anonymous wrote:If it's 0% who cares? Right?

-NP

Well if it gets totaled or you want to sell it before that, you will probably owe more than it’s worth.

Especially on a piece of junk American made SUV. You’ll be lucky if it’s half paid off before it’s in the junkyard.

Anonymous wrote:For the 0% the purchase price will be more. Nothing is free.

That’s why you tell them you are paying cash at the start. Negotiate your price, then ask for financing. If they don’t give you the 0% you walk. They will probably call you in a few days if not agreeing on the spot.

NP:

If the price of the car is the same, why wouldn't you do 0% over 7 years? That's free money. I have the cash to pay up front for a new car when this pandemic is over, but I sure as heck won't be when they'll loan me the money for free. That money can be invested for the length of the loan. I drive my cars for 10+ years, so I'm not going to be selling it underwater.

We've done it with a few things. We somehow got 0% financing on a new furnace/air conditioner for 10 years. It's almost paid off (next year), and it's made us thousands vs. if we had paid for everything up front. Time value of money.

The only issue is that you need to secure the purchase price before discussing financing. If they are raising the cost of the vehicle to account for the low interest rates, then it's likely not worth it. I agree with the pp who said to secure outside financing before going to the dealer, so that they have to beat what you bring to them.

Anonymous wrote:

Anonymous wrote:As long as you can afford the monthly payment, paying a 0% loan over 84 months will do great things for your credit. I’d do it.

Only if you want to be a slave to the bank

Eh, we’ve done it and it’s fine. Our credit is excellent and we had cheap car payments.

Anonymous wrote:As long as you can afford the monthly payment, paying a 0% loan over 84 months will do great things for your credit. I’d do it.

Only if you want to be a slave to the bank

As long as you can afford the monthly payment, paying a 0% loan over 84 months will do great things for your credit. I’d do it.

For the 0% the purchase price will be more. Nothing is free.

any american car that isn't a tesla is not worth 0%, i'd actually want a negative rate

Anonymous wrote:If you need to finance a car over 84 months then you cannot afford it.

+1