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Smart Shopper Rebates, Incentives, APRs - Questions & Comments
3978 messages, Last post on Nov 30, 2009 at 9:19 AM
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I had a Mercury dealer tell me yesterday that the current rebate is $1,500. But all I have found on the Internet is a $500 mfr to customer rebate? Is there a mfr-dealer incetnive I dont know about? (Looking to buy in Oct 2007)
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Replying to: jamesam (Oct 15, 2007 2:42 pm) |
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One car I'm looking at has a $1000 cash rebate or 0% financing for 5 years. Depending on the bank rate you use 0% can save you $3000 or $4000 in interest payments over even a credit union loan. My question: Is there something I'm missing? Why would a manufacturer want to give you such a great financing deal but only a so-so cash back deal? I realize that the 0% only applies to top tier customers but still it makes me wonder. What's the catch?
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Replying to: oldfarmer50 (Jan 23, 2008 3:46 pm) Those numbers were accurate last year.
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Replying to: joel0622 (Jan 23, 2008 4:09 pm) Could it really be as simple as a gambit to generate repeat customers? If I'm calculating correctly, the 0% deal is worth over $4000 vs. a $1000 cash rebate. They must be looking for more than loyalty for 3 grand. Is there a limit on the percentage of the purchase price you can finance? I mean could I finance 80-90% at this low rate? How common are these types of deals? Maybe I should be looking around more. Say, joel0622, got any 0% deals on a Mustang GT?
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Replying to: oldfarmer50 (Jan 23, 2008 4:41 pm) If your credit is good you could finance 140%  that rate. Also, rebates don't get peoples attention like they used to. Sorry no 0% on the Mustang GT's. But I will put you on my list to call if it ever happens 
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Replying to: joel0622 (Jan 23, 2008 4:47 pm) I guess it is.  Today when I was talking about rates with my credit union lady I mentioned that my FICO was 790 and I think I heard her gasp. She then approved me for 100% financing of any car I wanted to buy. No wonder people get into money trouble. Lenders just throw money at you. |
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Replying to: oldfarmer50 (Jan 23, 2008 4:41 pm) One of the biggest mistakes I ever made was in buying an '02 Chevy Avalanche with zero financing. The truck stickered for 38 something and the purchase price was 32 and change. Without my asking, the dealer said GMAC would finance 40 on it. I should have put the extra 7 plus in my pocket but, no, I was content with just financing the purchase price.
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Replying to: cccompson (Jan 23, 2008 5:00 pm) On the other hand, if not having those 7 grand made you not buy something and wait until saved some money, that was almost as good as taking the 7 grand and putting it into work - with advantage of building equity faster. So - not such a big mistake, after all.
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Replying to: dino001 (Jan 23, 2008 8:21 pm) I had people ask me about that allot when we had the 0% for 72 going on. If they had for instance a PIF trade that was worth $10K they would want to know if it would be a good idea to get there trade equity back and put it in a CD/Money Market/etc. They would show me spread sheets on how much they could make on there $10K over the 6 year period. I would tell them that I am not a financial adviser but IMO the only way that made sense is if they were going to keep the car for the full 6 years or at least till they had equity. My train of thought was that if they financed 100% plus the taxes and then came to trade again in a couple years then they would be out of equity. Then they would roll that neg into a new loan at say 6.5% and kind of defeat the purpose. Then it starts the process of rolling a little more each time and before you know it your neg exceeds the original $10K. I would go on to tell them that car buying is not an investment and they should not look at it as a money making proposition in any way, just take the program for what it is worth and enjoy the free money. if they wanted to invest something I would be happy to tell them what there monthly finance charge could have been and they can invest that if they want to. Good advice? Misguided advice? |
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Smart Shopper Rebates, Incentives, APRs - Questions & Comments
