If you have cash on hand to pay for the full price of the car, and the question is if you should do that vs. taking a 0% loan (and the price is the same either way), absolutely take the loan. It's literally, and I do mean literally, free money.

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

A 2012 Jeep Wrangler on average has held 50% of its value. Haven't run the math on the curve, but aside from the first year and assuming you don't total the thing, a 7 year loan at 0% would seem to be a good deal (of course, FCA doesn't offer 0% loans on Wranglers because they sell fine without them).

Anonymous wrote:84 months is 7 years. Do you really want to be paying for a car for 7 years?

If you are not paying interest, what's the issue? You can always increase payments to pay off sooner.

Just say no.

Anonymous wrote:

Anonymous wrote:I don't get the shot at american cars not holding value. I want to get a used Ford Explorer and they seem to hold their value just fine.

But compare a used Ford vehicle with a Honda vehicle.

The Honda vehicle will likely cost more.
Ford is not a reliable brand™️

Honda's are painfully boring.

Anonymous wrote:I agree that domestic vehicles lose their value a lot earlier vs. one manufactured in Japan.

Honda’s + Toyota’s hold their values much longer than Fords + Chevys.

Also German luxury cars start out 2-3 times the price of a Japanese car but then after the loan is paid off, the Japanese cars are worth twice as much as the luxury cars.

Anonymous wrote:I don't get the shot at american cars not holding value. I want to get a used Ford Explorer and they seem to hold their value just fine.

But compare a used Ford vehicle with a Honda vehicle.

The Honda vehicle will likely cost more.
Ford is not a reliable brand™️

I agree that domestic vehicles lose their value a lot earlier vs. one manufactured in Japan.

Honda’s + Toyota’s hold their values much longer than Fords + Chevys.

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

-NP

Sure, if you KNOW you will own your car for 7 years. Be sure to have gap insurance, however, because this is almost guaranteed to make you upside down on the value of the car.

Anonymous wrote:It means you will be paying off your car for 7 years assuming you qualify. Buy a car you can afford and pay off comfortably in 3-4 years.

This was the advice I was given AFTER the fact when I bought my first car over 20 years ago. I have a 5 year plan but my payments were around $200 a month which is affordable. If you can afford to pay more per month in order to pay the car off faster than do it. Get a used car in good condition if money is a factor. Cars instantly lose value as soon as you drive it off the lot. You could literally buy the car and drive it to Car Max that same day and Car Max will devalue the car around $5-10K. It's crazy! Remember to factor in the insurance money and your insurance payments might go up as well as registration depending on your state and the age of your last car. It is definitely not a decision to be rushed into.

Anonymous wrote:

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.

Under water means you owe more than the car is worth. You, or the PP, said that for an 84 month loan the purchaser is underwater for all 84 months. That is ridiculous.

It's a 0% loan, so we're only talking about the principal. Say you spend $42,000 on a car - your payment will be $500/month. You think that the car is worth less than $6000 after 6 years? Less than $500 after 6 years 11 months? Say you buy an $84,000 car - at the end of six years, you still owe $12,000. You think your 6 yo Porche, or other luxury car, is worth less than $12,000? And a year later, it's worth less than $1000?

As I said, this is basic math.

I personally wouldn't go longer than 60 months but 0% is great and if you can get it for a shorter term, absolutely take it.

And yes, gap insurance through your autoinsurance. I pay $7 a month for mine and and after a year or two (depending on the car value), there is no further need so it can be cancelled.

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

-NP

+1 as long as there’s no prepayment penalty, this is great

Anonymous wrote:

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.

It’s always worked for me. But I’m pretty dead set on negotiating no matter how long it takes. I’m stubborn as hell and love a good challenge.

I don't get the shot at american cars not holding value. I want to get a used Ford Explorer and they seem to hold their value just fine.