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Uranium 235 posted:Okay, so in these cases the dealership is giving the loan, and not an outside financial service? I once bought a car with a big down payment, but financed the rest through Toyota Financial Services. I was trying to think about it as though TFS were giving someone a 0% rate, which wouldn't make any sense. If it's the dealership, then I guess it does. 0% loans are always going to be through the automaker's finance company (GMAC, TFS, etc.). The lending arm takes a tiny financial hit so the manufacturing arm can sell a car that might not have sold at all otherwise (which is also why you'll see offers like that fairly often on, say, high-volume mid-range models from economy brands, but never on more limited and in-demand brands and models). A third party lender would have no stake in what car you buy, so offering 0% car loans would literally cost them money and there's absolutely no benefit for them. 0% loans can be a good deal, though if they're offered in place of a rebate you'd want to apply for some third party loans as well and crunch the numbers to see whether the rebate or the 0% financing deal saves you more money in the end. I got a 0% loan on my Hyundai Sonata and it only cost me a $500 rebate, so I came out well ahead, especially since the 0% loan was good for six years with $0 down instead of my planned four-year loan with a big down payment; I was able to earn a fair amount of interest on the unused down payment and the extra monthly payments I didn't have to make, at least until the savings rates crashed (and even after that, ~1% of several thousand dollars was still better than nothing). dennyk fucked around with this message at 16:35 on Jul 6, 2013 |
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Jul 6, 2013 04:27
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| # ¿ Apr 29, 2024 08:56 |
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