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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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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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Replying to: joel0622 (Jan 24, 2008 6:11 am)  They don't need to keep the car 6 years, they just need to not roll negative. In other words, if the option is pay $5k down now or take a 0% loan for $5k now and earn interest on your $5k, even if only for the next 2 years, then take that 2nd option! I am always of the opinion that you should take cheap money when it comes your way and use it to the fullest. I have 2 extremely low money factors on 2 cars right now (less than 1% each), while my money sits in a money market earning almost 5%. I could pay off in cash right now ... but why would I?
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Replying to: joel0622 (Jan 24, 2008 6:11 am) There is also a significant risk exposure - larger than they probably realize - if the car gets totaled early, they will end up owing large chunk of cash, so if the investment is not very liquid (CD, real estate) or volatile (stocks), they may end up losing on the deal. Buying Gap against it would of course defeat the whole leverage, so it makes no sense, either. I like to keep things "real". If it's a car loan, it's a car loan, not car plus three trips to the mall. Mixing or levering those things against each other is only good for very disciplined and self-concious people who can say exactly how much money they really have after this "creative accounting" schemes are included. My short experience tells me it is most often done by people who are exact opposite - they don't want to face the truth, because it may mean they are living beyond their means and those levers are done to tell themselves they are smart and obscure the truth from themselves. They build Enron in their own personal finances. Of course, as detective Monk says "I may be wrong - but I'm not". |
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Replying to: qbrozen (Jan 24, 2008 7:44 am) Enjoy it while it lasts - not for long. After this cut it will be "almost 4%", soon enough (more cuts) - "almost 3%", etc. 
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