Buying a new car - 0% financing. (1 Viewer)

[mr roboto]

I'm a big proponent of buying slightly used. Hate the idea of losing value so quickly.

I'm looking at a small crossover SUV. New price is about 33k. Slightly used with 20-30,000 miles can be had for about 25k.

Dealer is offering 0% with 90 days no payments on new. It's really hard to turn down free money even though the offer is on the new cars only.

Would 0% financing change your mind from 'never buy new' to 'take the free money dummy!'?

 

[Fat Nick]

I might be a bad example because I tend to buy new and drive them into the ground...but in that case, especially if I was prepared to pay cash anyway, I'd be all over that deal just because the cash flow hit would be spread out. From a true value standpoint, it would really just depend on personal preference.

I'll finance anything if I think the return I can make on the money is greater than the interest rate. In this case, even if you finance it at 0% and go buy a crappy bank CD, you'll come out ahead. As for the $8,000 value between new and used...that's really your call. I just always feel safer buying a car I know some schmuck hasn't ragged out, but that's just me.

 

[Slapdash]

In a similar boat due to my old sedan being totaled by some #######. Are certain manufacturers offering 0%?

 

[Johnny Bing]

It really isn't "free money", because the amount they would make on the interest they roll into the cost of the vehicle in my opinion.

Nothing is free in the car dealership, it is just moved over to another category.

 

[Juxtatarot]

I'm a big proponent of buying slightly used. Hate the idea of losing value so quickly.

I'm looking at a small crossover SUV. New price is about 33k. Slightly used with 20-30,000 miles can be had for about 25k.

Dealer is offering 0% with 90 days no payments on new. It's really hard to turn down free money even though the offer is on the new cars only.

Would 0% financing change your mind from 'never buy new' to 'take the free money dummy!'?

With good credit, you can still get a loan for a slightly used car under 2%. That's less than $1,300 over 60 months for a $25,000 loan. Using your example, $25,000 +$1,300 <<<<< $33,000.

 

[Fat Nick]

It really isn't "free money", because the amount they would make on the interest they roll into the cost of the vehicle in my opinion.

Nothing is free in the car dealership, it is just moved over to another category.

You can probably make this argument about everything...at the end of the day though, just negotiate the best price you can. If you're OK with that, then that's what the car is worth to you...If they offer 0% on top of that, go for it. All things equal, paying cash up front for a car you can finance for 0% doesn't make financial sense. It's not going to be the difference between rich and poor, but you can make guaranteed money.

To be clear, I'm not disagreeing with you assuming the dealer is the one financing things...just saying that you could never prove out the scenario.

 

[belljr]

I'm a big proponent of buying slightly used. Hate the idea of losing value so quickly.

I'm looking at a small crossover SUV. New price is about 33k. Slightly used with 20-30,000 miles can be had for about 25k.

Dealer is offering 0% with 90 days no payments on new. It's really hard to turn down free money even though the offer is on the new cars only.

Would 0% financing change your mind from 'never buy new' to 'take the free money dummy!'?

My last 2 loans have been 0. I ended up not putting anything down. Figure slowly drain the savings but I keep my cars forever

 

[Johnny Bing]

It really isn't "free money", because the amount they would make on the interest they roll into the cost of the vehicle in my opinion.

Nothing is free in the car dealership, it is just moved over to another category.

You can probably make this argument about everything...at the end of the day though, just negotiate the best price you can. If you're OK with that, then that's what the car is worth to you...If they offer 0% on top of that, go for it. All things equal, paying cash up front for a car you can finance for 0% doesn't make financial sense. It's not going to be the difference between rich and poor, but you can make guaranteed money.

To be clear, I'm not disagreeing with you assuming the dealer is the one financing things...just saying that you could never prove out the scenario.

And I see that point. If your happy with the price great, but the dealer has their bottom dollar number in the books that they can sell a car for and keep their margin. If they offer 0% financing then that bottom line number just gets adjusted.

In the consumers eyes, it all looks great, but it is all about moving numbers around. Some people will buy the car for $29,000 with 2% financing for 60 mo, and the next guy will buy same car for $31,000 with 0% financing thinking he got a better deal. Its all a wash in the end.

My point is just don't fooled by the flashy 0% financing. But yes, I think we are both same the same thing.

 

[Ignoratio Elenchi]

I might be a bad example because I tend to buy new and drive them into the ground...but in that case, especially if I was prepared to pay cash anyway, I'd be all over that deal just because the cash flow hit would be spread out. From a true value standpoint, it would really just depend on personal preference.

I'll finance anything if I think the return I can make on the money is greater than the interest rate. In this case, even if you finance it at 0% and go buy a crappy bank CD, you'll come out ahead. As for the $8,000 value between new and used...that's really your call. I just always feel safer buying a car I know some schmuck hasn't ragged out, but that's just me.

I'm exactly the same way. People cite the drastic upfront depreciation of new car, but by the time I'm done with it it's going to be worth a small fraction of what I paid for it anyway. It's not an investment. I generally don't mind paying a premium to get exactly the car I want and one I know no one else has owned before me - I'll do the best I can to negotiate the price I want to pay and I won't lose any sleep over the fact that I might've saved a few thousand by hunting around for something 3 years old.

I bought my current car new almost 10 years ago and at this point I hope to drive it for another 10 (I'm also not a "car guy," for me it's just a tool to get me to work and back). The money I might save by buying used, spread over the ~20 years I'll own the car, just isn't worth that much. At 0% financing I'm going new every time and saving myself the headache.

 

[Fat Nick]

I might be a bad example because I tend to buy new and drive them into the ground...but in that case, especially if I was prepared to pay cash anyway, I'd be all over that deal just because the cash flow hit would be spread out. From a true value standpoint, it would really just depend on personal preference.

I'll finance anything if I think the return I can make on the money is greater than the interest rate. In this case, even if you finance it at 0% and go buy a crappy bank CD, you'll come out ahead. As for the $8,000 value between new and used...that's really your call. I just always feel safer buying a car I know some schmuck hasn't ragged out, but that's just me.

I'm exactly the same way. People cite the drastic upfront depreciation of new car, but by the time I'm done with it it's going to be worth a small fraction of what I paid for it anyway. It's not an investment. I generally don't mind paying a premium to get exactly the car I want and one I know no one else has owned before me - I'll do the best I can to negotiate the price I want to pay and I won't lose any sleep over the fact that I might've saved a few thousand by hunting around for something 3 years old.

I bought my current car new almost 10 years ago and at this point I hope to drive it for another 10 (I'm also not a "car guy," for me it's just a tool to get me to work and back). The money I might save by buying used, spread over the ~20 years I'll own the car, just isn't worth that much. At 0% financing I'm going new every time and saving myself the headache.

Yup...and to avoid the pricing tied to the financing tactic, I simply tell them that we'll discuss how I'm planning to pay after we figure out if we can get to a price I like. I push to do it step by step...negotiate the price of the car I'm buying...THEN negotiate the trade...THEN figure out financing. The one question I hate the most is when I'm trading and they ask, "What do you have more of a problem with? The trade or the price of the car?" Lock items down. Less room for them to try and lose you in the numbers.

I'm 100% with you though...I've put 100K+ miles on every car I've ever owned. I'll pay to have the car I want with the options I want, but I'm also a car snob, so I can't fault some for viewing it as "just a car" and looking to save $. Either way though, as you said...a car you actually plan to drive is never an investment.

 

[bostonfred]

Negotiate your best price on each first before addressing financing. Knowing that they have zero percent financing for the new car usually means that they won't give you as deep a discount, but do the walk away and leave your contact info trick at a couple dealers and see what happens.

If they have zero percent financing them they often will have a deep discount if you don't take the financing. If you do the math, the cost ends up about the same if you do 0 percent or finance with them at their normal rate. But if you can pay cash and get that discount, it probably works out better than the zero financing, because you won't be able to earn as much saving your money as they would have earned off of you taking their financing.

If they do have that kind of deal, there may be a requirement that you finance some minimum amount, and/or an early payment penalty. Ask questions about this at the dealer you don't plan to buy from so you don't impact your negotiatons at the better dealer.

Also consider the cost of the warranty and any freebies they give new car buyers. A slightly used car may have the same warranty, but you don't get as many miles of that warranty so it has less utility to you. You also don't know what's been done to the slightly used car, but they certainly haven't maintained it better than you would have. And after owning a new car for x years, it will have more resale value than if you own the yard car for the same x years. So there's a dollar value by which a new car is better.

 

[kutta]

I'm a FBG so I lease a new car every three years. I hate driving cars with over 50K miles on them. Let someone else worry about fixing things.

 

[Da Guru]

A guy who I grew up with is the GM of a dealership. the "Free" financing usually is not free. When I asked him about how it worked he said that they offer "free" financing on vehicles that have a nice rebate or dealer incentive. Of course if you want the free financing you don`t get the rebate. The dealer keeps it to offset the free financing.

 

[mr roboto]

I appreciate the feedback and responses. I am prepared to pay cash for a slightly used model so I have about 25,000 ready to go to buy the used car. The 0% financing offer is for 2015 model.

I get what you are saying about the fact that nothing is truly free so if I could negotiate a better price by paying cash for new then I may go that route. Just out of curiosity, any finance experts here know what the actual dollar trade off would be for a 0% finance price versus a cash price? I haven't done a cost of capital amortization or time value of money calculation in about 15 years.

 

[Chadstroma]

Just bought our new 2015 GMC Acadia. I took the rebate and then financed at 3.36% for 84 months. The cost on this over the term of the loan is more than the rebate but I needed to get the payments down for the time being as childcare costs are killing us financially right now. I will refinance it later and get it down even lower to save a few more bucks.

I tend to favor the new cars because it comes down to my lack of ability in fixing vehicles. For pretty much anything other than the most basic car issues- I have to either lean on the FIL or take it in to get fixed. That can be expensive. So, I rather spend the money on the new car and have the piece of mind of not having likely more issues with a used car plus enjoy a new car. That all being said, I am open to buying used but it looks like the Traverse/Acadia/Enclave hold their value fairly well so I did not see a ton of value in slightly used.

As for the question to start the thread off. I think it all matters. What kind of deal can you get on a new car vs a used one? Are you financing or using cash? If financing what are the options and with a new one vs rebate. I just think you crunch the numbers and then decide. The 0% can be a factor but it surely is not the only factor.

 

[Chadstroma]

In a similar boat due to my old sedan being totaled by some #######. Are certain manufacturers offering 0%?

Yea.... just got done doing a bunch of shopping. Dodge seems to have the best offers right now. GMC certainly is another.

 

[Fat Nick]

I appreciate the feedback and responses. I am prepared to pay cash for a slightly used model so I have about 25,000 ready to go to buy the used car. The 0% financing offer is for 2015 model.

I get what you are saying about the fact that nothing is truly free so if I could negotiate a better price by paying cash for new then I may go that route. Just out of curiosity, any finance experts here know what the actual dollar trade off would be for a 0% finance price versus a cash price? I haven't done a cost of capital amortization or time value of money calculation in about 15 years.

Kind of a tricky calculation. You're basically asking what discount you should expect to get paying for cash vs. 0% financing. I don't think there's a mathematical way to get at this without more info. Simplistically, the discount to you should be whatever you think your personal "discount rate" is. That is, what's the average rate of return you make on your free cash?

Let's say you have $100K in investments, and you make 10% on that per year...that 10% is your opportunity cost by paying cash. So essentially, each month you could've earned 1/12th of 10% on the cash you hadn't paid yet. I think if you use those numbers over an assumed 48 month lease, and then discount them back for PV of those "earnings," you end up with ~$2,126 at an assumed 10% rate of return.

Obviously if your assumed rate of return is lower, the discount you should ask for is lower. I have this all in an excel sheet if you want a different set of inputs.

 

[George Jefferson Airplane]

All hail seven year car loans!!!!!!

 

[mr roboto]

I appreciate the feedback and responses. I am prepared to pay cash for a slightly used model so I have about 25,000 ready to go to buy the used car. The 0% financing offer is for 2015 model.

I get what you are saying about the fact that nothing is truly free so if I could negotiate a better price by paying cash for new then I may go that route. Just out of curiosity, any finance experts here know what the actual dollar trade off would be for a 0% finance price versus a cash price? I haven't done a cost of capital amortization or time value of money calculation in about 15 years.

Kind of a tricky calculation. You're basically asking what discount you should expect to get paying for cash vs. 0% financing. I don't think there's a mathematical way to get at this without more info. Simplistically, the discount to you should be whatever you think your personal "discount rate" is. That is, what's the average rate of return you make on your free cash?Let's say you have $100K in investments, and you make 10% on that per year...that 10% is your opportunity cost by paying cash. So essentially, each month you could've earned 1/12th of 10% on the cash you hadn't paid yet. I think if you use those numbers over an assumed 48 month lease, and then discount them back for PV of those "earnings," you end up with ~$2,126 at an assumed 10% rate of return.

Thanks. Close enough to give me some idea. The loan is for 36 months so this would be shrunk somewhat and I don't think I can assume an opportunity cost of 10%.

 

[NutterButter]

I'm a FBG so I lease a new car every three years. I hate driving cars with over 50K miles on them. Let someone else worry about fixing things.

Three years is a year longer than other FBGs I know.

 

[Fat Nick]

I appreciate the feedback and responses. I am prepared to pay cash for a slightly used model so I have about 25,000 ready to go to buy the used car. The 0% financing offer is for 2015 model.

I get what you are saying about the fact that nothing is truly free so if I could negotiate a better price by paying cash for new then I may go that route. Just out of curiosity, any finance experts here know what the actual dollar trade off would be for a 0% finance price versus a cash price? I haven't done a cost of capital amortization or time value of money calculation in about 15 years.

Kind of a tricky calculation. You're basically asking what discount you should expect to get paying for cash vs. 0% financing. I don't think there's a mathematical way to get at this without more info. Simplistically, the discount to you should be whatever you think your personal "discount rate" is. That is, what's the average rate of return you make on your free cash?Let's say you have $100K in investments, and you make 10% on that per year...that 10% is your opportunity cost by paying cash. So essentially, each month you could've earned 1/12th of 10% on the cash you hadn't paid yet. I think if you use those numbers over an assumed 48 month lease, and then discount them back for PV of those "earnings," you end up with ~$2,126 at an assumed 10% rate of return.

Thanks. Close enough to give me some idea. The loan is for 36 months so this would be shrunk somewhat and I don't think I can assume an opportunity cost of 10%.

Sure. Glad I could use those skills...don't use them that much in my current role.

Interestingly not much difference, but some. $1,936. I guess because the PV of those smaller flows in the extra 12 months aren't really worth much that far out. It's the first few years that make up most of the PV.

 

[Dentist]

I'd just pay cash for the new car and be done with it.

I'm in the camp of buy new and drive for 10-15 years.

I'm on year 10 of my 2004 new car and just put on a 2nd set of new tires... still going strong!

I'm dreading a newer car someday... the great part about aging cars are the lower insurance payments, the lower personal property taxes, etc... everything is cheaper!

130K on it now... i'm hoping to get to 175

 

[Al Czervik]

It really isn't "free money", because the amount they would make on the interest they roll into the cost of the vehicle in my opinion.

Nothing is free in the car dealership, it is just moved over to another category.

Not true. Generally, new vehicle 0% APR offers are paid for through a large incentive budget from the manufacturer. Dealer has nothing to do with it. Manufacturers pay hundreds of millions a month in vehicle purchase incentives so take their money.

 

[kutta]

I'd just pay cash for the new car and be done with it.

I'm in the camp of buy new and drive for 10-15 years.

I'm on year 10 of my 2004 new car and just put on a 2nd set of new tires... still going strong!

I'm dreading a newer car someday... the great part about aging cars are the lower insurance payments, the lower personal property taxes, etc... everything is cheaper!

130K on it now... i'm hoping to get to 175

Aren't you a doctor?

 

[Dentist]

I'd just pay cash for the new car and be done with it.

I'm in the camp of buy new and drive for 10-15 years.

I'm on year 10 of my 2004 new car and just put on a 2nd set of new tires... still going strong!

I'm dreading a newer car someday... the great part about aging cars are the lower insurance payments, the lower personal property taxes, etc... everything is cheaper!

130K on it now... i'm hoping to get to 175

Aren't you a doctor?

no, i'm a dentist

 

[bostonfred]

A guy who I grew up with is the GM of a dealership. the "Free" financing usually is not free. When I asked him about how it worked he said that they offer "free" financing on vehicles that have a nice rebate or dealer incentive. Of course if you want the free financing you don`t get the rebate. The dealer keeps it to offset the free financing.

That's why you negotiate the price first, and also why you ask what they can do if you don't get their financing.

 

[msommer]

I appreciate the feedback and responses. I am prepared to pay cash for a slightly used model so I have about 25,000 ready to go to buy the used car. The 0% financing offer is for 2015 model.

I get what you are saying about the fact that nothing is truly free so if I could negotiate a better price by paying cash for new then I may go that route. Just out of curiosity, any finance experts here know what the actual dollar trade off would be for a 0% finance price versus a cash price? I haven't done a cost of capital amortization or time value of money calculation in about 15 years.

Kind of a tricky calculation. You're basically asking what discount you should expect to get paying for cash vs. 0% financing. I don't think there's a mathematical way to get at this without more info. Simplistically, the discount to you should be whatever you think your personal "discount rate" is. That is, what's the average rate of return you make on your free cash?Let's say you have $100K in investments, and you make 10% on that per year...that 10% is your opportunity cost by paying cash. So essentially, each month you could've earned 1/12th of 10% on the cash you hadn't paid yet. I think if you use those numbers over an assumed 48 month lease, and then discount them back for PV of those "earnings," you end up with ~$2,126 at an assumed 10% rate of return.

Thanks. Close enough to give me some idea. The loan is for 36 months so this would be shrunk somewhat and I don't think I can assume an opportunity cost of 10%.

Don't forget inflation and taxes

 

[omahawildcat25]

I'm a big proponent of buying slightly used. Hate the idea of losing value so quickly.

I'm looking at a small crossover SUV. New price is about 33k. Slightly used with 20-30,000 miles can be had for about 25k.

Dealer is offering 0% with 90 days no payments on new. It's really hard to turn down free money even though the offer is on the new cars only.

Would 0% financing change your mind from 'never buy new' to 'take the free money dummy!'?

Depends on what kind of loan you can get for used and how much you can get them down on the new price.

 

[culdeus]

I'm in the middle of buying some cars. What a colossal beat down.

 

[George Jefferson Airplane]

Just bought our new 2015 GMC Acadia. I took the rebate and then financed at 3.36% for 84 months. The cost on this over the term of the loan is more than the rebate but I needed to get the payments down for the time being as childcare costs are killing us financially right now. I will refinance it later and get it down even lower to save a few more bucks.

I tend to favor the new cars because it comes down to my lack of ability in fixing vehicles. For pretty much anything other than the most basic car issues- I have to either lean on the FIL or take it in to get fixed. That can be expensive. So, I rather spend the money on the new car and have the piece of mind of not having likely more issues with a used car plus enjoy a new car. That all being said, I am open to buying used but it looks like the Traverse/Acadia/Enclave hold their value fairly well so I did not see a ton of value in slightly used.

As for the question to start the thread off. I think it all matters. What kind of deal can you get on a new car vs a used one? Are you financing or using cash? If financing what are the options and with a new one vs rebate. I just think you crunch the numbers and then decide. The 0% can be a factor but it surely is not the only factor.

Wont the warranty expire long before you are finished making payments?

I always avoid this. Three year warranty=three year loan. If you have maintenance issues after the warranty expires, that's a good way of getting in over your head. Saw a news story about this recently, lots of repos on cars four and five years old because they break down and then people can't make their payments. Essentially if you are getting a seven year loan, you can't afford the car.

 

[Fat Nick]

I'd just pay cash for the new car and be done with it.

I'm in the camp of buy new and drive for 10-15 years.

I'm on year 10 of my 2004 new car and just put on a 2nd set of new tires... still going strong!

I'm dreading a newer car someday... the great part about aging cars are the lower insurance payments, the lower personal property taxes, etc... everything is cheaper!

130K on it now... i'm hoping to get to 175

Jeeze...Mine is only 7 years old and I just hit 130K...since I started my current job, I put roughly 25K/year on it, and that's driving my fun car once every other week or so.

I'm about to put my 4th set of tires on it...maybe I need to go a little easier in the turns. That said, I make up for it by doing all my maintenance. I'll drive this one into the ground, or until the 2nd kid comes and we need something bigger, whichever comes first.

 

[Steed]

Just bought a slightly used (2000 miles) Volvo xc60. Got 0% and since it was certified, warranty got upped from 3 yr/50k to 5yr/70k. Solid deal. They're out there this time of year

 

[culdeus]

Here's my situation. Would appreciate advice. Have two cars I'm looking to change due to kid size issues. Gonna get rid of both of them at the same time. I'd estimate I'm gonna get back $25k in equity.

I'm looking at 3rd row SUV for one car and a sedan-y type car for the other. Not sold on used/new for either.

I'm probably going to pay cash for one and willing to kick in $10k or so to get the deal done.Been looking at XC90 with some miles on them. Those are well in that range.

I'm also actually considering leasing the sedan as I think in 3 years we will also be looking to change up cars again, however I'm willing to float a note on that one. I'm also more than willing to get something with 30k miles or so on it if it's reliable. Something decent, but not splashy. Thinking 2nd tier luxury also with this one volvo/audi/infinity/etc.for resale as well.

Advice here is free so have at it.

I could go used/new lease/loan/cash on all the cars. I don't need liquidity right now. No other loans to consider and savings are all good. Wife looks hot in yoga pants, typical fbg situation.

 

[Jobber]

I'm still driving my $15k 2003 Toyota Corolla I bought new with 0% 5 year financing. Never been in the shop. It's like they're paying me to drive this thing.

 

[the moops]

Just bought our new 2015 GMC Acadia. I took the rebate and then financed at 3.36% for 84 months. The cost on this over the term of the loan is more than the rebate but I needed to get the payments down for the time being as childcare costs are killing us financially right now. I will refinance it later and get it down even lower to save a few more bucks.

If childcare costs are killing you financially, why the hell would you buy a brand new 35,000 dollar vehicle?

I get that you want new, and you can't fix things, but this seems like a poor choice to make at this time, no?

 

[Nugget]

I'd look at some CPO programs as mentioned above. Had a friend get a Fusion this summer with 0.9% financing for 60 month and a 7/100K powertrain warranty.

If you go with the zero percent, check to see if you are giving up a rebate in its place. The manufacturer covers the cost of the incentive or the financing, but there is a trafe off.

The dealer is not involved in the cost of the zero percent, but would prefer to make a finance reserve by having you take the rebate and go with one of their preferred lenders.

 

[Fat Nick]

Just bought our new 2015 GMC Acadia. I took the rebate and then financed at 3.36% for 84 months. The cost on this over the term of the loan is more than the rebate but I needed to get the payments down for the time being as childcare costs are killing us financially right now. I will refinance it later and get it down even lower to save a few more bucks.

If childcare costs are killing you financially, why the hell would you buy a brand new 35,000 dollar vehicle?

I get that you want new, and you can't fix things, but this seems like a poor choice to make at this time, no?

Eighty Four Months? They do this now? Wow.

 

[IC FBGCav]

I'm a big proponent of buying slightly used. Hate the idea of losing value so quickly.

I'm looking at a small crossover SUV. New price is about 33k. Slightly used with 20-30,000 miles can be had for about 25k.

Dealer is offering 0% with 90 days no payments on new. It's really hard to turn down free money even though the offer is on the new cars only.

Would 0% financing change your mind from 'never buy new' to 'take the free money dummy!'?

I never buy new cars. I bought two in the last month because of 0% After finance charges the new one is only around 3K more.

 

[Al Czervik]

If you go with the zero percent, check to see if you are giving up a rebate in its place. The manufacturer covers the cost of the incentive or the financing, but there is a trade off.

The dealer is not involved in the cost of the zero percent, but would prefer to make a finance reserve by having you take the rebate and go with one of their preferred lenders.

 

[eoMMan]

Just bought our new 2015 GMC Acadia. I took the rebate and then financed at 3.36% for 84 months. The cost on this over the term of the loan is more than the rebate but I needed to get the payments down for the time being as childcare costs are killing us financially right now. I will refinance it later and get it down even lower to save a few more bucks.

If childcare costs are killing you financially, why the hell would you buy a brand new 35,000 dollar vehicle?I get that you want new, and you can't fix things, but this seems like a poor choice to make at this time, no?

Yeah, that's a pretty horrible deal. Sorry man.

 

[Da Guru]

I'm a FBG so I lease a new car every three years. I hate driving cars with over 50K miles on them. Let someone else worry about fixing things.

Three years is a year longer than other FBGs I know.

I represent many suppliers and the Big 3 so I get program vehicles to drive on one year lease deals. The deals change but the prices are awesome. Right now driving a GMC Terrain loaded that is allotted 18K miles for 149.00 a month with zero down. My wife is driving a loaded Ford Fusion for 139.00 a month with zero down. Been doing this program for 12 years now. My Terrain is done in 3 months and I have been looking into my next vehicle. Options are a Tahoe loaded for 169.00..of I can get a Chevy Cruze for 99.00 a month on a year lease. I have not bought a set of tires or put brakes on a car in 12 years. Or any maintenance

 

[the moops]

jesus I want in on that deal

 

[George Jefferson Airplane]

Chevy Cruise is a terrible car. I always get those on trips and they have to be the most ergonomically flawed vehicle ever.

 

[Chadstroma]

Just bought our new 2015 GMC Acadia. I took the rebate and then financed at 3.36% for 84 months. The cost on this over the term of the loan is more than the rebate but I needed to get the payments down for the time being as childcare costs are killing us financially right now. I will refinance it later and get it down even lower to save a few more bucks.

I tend to favor the new cars because it comes down to my lack of ability in fixing vehicles. For pretty much anything other than the most basic car issues- I have to either lean on the FIL or take it in to get fixed. That can be expensive. So, I rather spend the money on the new car and have the piece of mind of not having likely more issues with a used car plus enjoy a new car. That all being said, I am open to buying used but it looks like the Traverse/Acadia/Enclave hold their value fairly well so I did not see a ton of value in slightly used.

As for the question to start the thread off. I think it all matters. What kind of deal can you get on a new car vs a used one? Are you financing or using cash? If financing what are the options and with a new one vs rebate. I just think you crunch the numbers and then decide. The 0% can be a factor but it surely is not the only factor.

Wont the warranty expire long before you are finished making payments?

I always avoid this. Three year warranty=three year loan. If you have maintenance issues after the warranty expires, that's a good way of getting in over your head. Saw a news story about this recently, lots of repos on cars four and five years old because they break down and then people can't make their payments. Essentially if you are getting a seven year loan, you can't afford the car.

I will refinance it well before the 84 months is up to a lower term and lower rate.

I can afford the car, I just choose cash flow right now. If I can get an 84 month loan at 3.26% then why not? I can. So, I did.

 

[George Jefferson Airplane]

Just bought our new 2015 GMC Acadia. I took the rebate and then financed at 3.36% for 84 months. The cost on this over the term of the loan is more than the rebate but I needed to get the payments down for the time being as childcare costs are killing us financially right now. I will refinance it later and get it down even lower to save a few more bucks.

I tend to favor the new cars because it comes down to my lack of ability in fixing vehicles. For pretty much anything other than the most basic car issues- I have to either lean on the FIL or take it in to get fixed. That can be expensive. So, I rather spend the money on the new car and have the piece of mind of not having likely more issues with a used car plus enjoy a new car. That all being said, I am open to buying used but it looks like the Traverse/Acadia/Enclave hold their value fairly well so I did not see a ton of value in slightly used.

As for the question to start the thread off. I think it all matters. What kind of deal can you get on a new car vs a used one? Are you financing or using cash? If financing what are the options and with a new one vs rebate. I just think you crunch the numbers and then decide. The 0% can be a factor but it surely is not the only factor.

Wont the warranty expire long before you are finished making payments?

I always avoid this. Three year warranty=three year loan. If you have maintenance issues after the warranty expires, that's a good way of getting in over your head. Saw a news story about this recently, lots of repos on cars four and five years old because they break down and then people can't make their payments. Essentially if you are getting a seven year loan, you can't afford the car.

I will refinance it well before the 84 months is up to a lower term and lower rate.

I can afford the car, I just choose cash flow right now. If I can get an 84 month loan at 3.26% then why not? I can. So, I did.

Did you get a payday loan after you left the dealership to pay for gas?

 

[Chadstroma]

Just bought our new 2015 GMC Acadia. I took the rebate and then financed at 3.36% for 84 months. The cost on this over the term of the loan is more than the rebate but I needed to get the payments down for the time being as childcare costs are killing us financially right now. I will refinance it later and get it down even lower to save a few more bucks.

If childcare costs are killing you financially, why the hell would you buy a brand new 35,000 dollar vehicle?

I get that you want new, and you can't fix things, but this seems like a poor choice to make at this time, no?

Because the $50K brand new vehicle would have been too much.

 

[George Jefferson Airplane]

I can afford the car...

Because the $50K brand new vehicle would have been too much.

 

[Chadstroma]

Just bought our new 2015 GMC Acadia. I took the rebate and then financed at 3.36% for 84 months. The cost on this over the term of the loan is more than the rebate but I needed to get the payments down for the time being as childcare costs are killing us financially right now. I will refinance it later and get it down even lower to save a few more bucks.

I tend to favor the new cars because it comes down to my lack of ability in fixing vehicles. For pretty much anything other than the most basic car issues- I have to either lean on the FIL or take it in to get fixed. That can be expensive. So, I rather spend the money on the new car and have the piece of mind of not having likely more issues with a used car plus enjoy a new car. That all being said, I am open to buying used but it looks like the Traverse/Acadia/Enclave hold their value fairly well so I did not see a ton of value in slightly used.

As for the question to start the thread off. I think it all matters. What kind of deal can you get on a new car vs a used one? Are you financing or using cash? If financing what are the options and with a new one vs rebate. I just think you crunch the numbers and then decide. The 0% can be a factor but it surely is not the only factor.

Wont the warranty expire long before you are finished making payments?

I always avoid this. Three year warranty=three year loan. If you have maintenance issues after the warranty expires, that's a good way of getting in over your head. Saw a news story about this recently, lots of repos on cars four and five years old because they break down and then people can't make their payments. Essentially if you are getting a seven year loan, you can't afford the car.

I will refinance it well before the 84 months is up to a lower term and lower rate.

I can afford the car, I just choose cash flow right now. If I can get an 84 month loan at 3.26% then why not? I can. So, I did.

Did you get a payday loan after you left the dealership to pay for gas?

Nah, the dealer filled it up for me.

 

[mr roboto]

Love the finance nazis that always jump in on these discussions. Moops is usually aghast at anyone who doesn't drive a vegetable oil moped and lives in something bigger than a garage.

 

[RUSF18]

Just bought our new 2015 GMC Acadia. I took the rebate and then financed at 3.36% for 84 months. The cost on this over the term of the loan is more than the rebate but I needed to get the payments down for the time being as childcare costs are killing us financially right now. I will refinance it later and get it down even lower to save a few more bucks.

I tend to favor the new cars because it comes down to my lack of ability in fixing vehicles. For pretty much anything other than the most basic car issues- I have to either lean on the FIL or take it in to get fixed. That can be expensive. So, I rather spend the money on the new car and have the piece of mind of not having likely more issues with a used car plus enjoy a new car. That all being said, I am open to buying used but it looks like the Traverse/Acadia/Enclave hold their value fairly well so I did not see a ton of value in slightly used.

As for the question to start the thread off. I think it all matters. What kind of deal can you get on a new car vs a used one? Are you financing or using cash? If financing what are the options and with a new one vs rebate. I just think you crunch the numbers and then decide. The 0% can be a factor but it surely is not the only factor.

Wont the warranty expire long before you are finished making payments?

I always avoid this. Three year warranty=three year loan. If you have maintenance issues after the warranty expires, that's a good way of getting in over your head. Saw a news story about this recently, lots of repos on cars four and five years old because they break down and then people can't make their payments. Essentially if you are getting a seven year loan, you can't afford the car.

I will refinance it well before the 84 months is up to a lower term and lower rate.

I can afford the car, I just choose cash flow right now. If I can get an 84 month loan at 3.26% then why not? I can. So, I did.

Wouldn't leasing make a lot more sense for you, given the cash flow constraints and also what I'm assuming is a growing family?