Usually, around here, you either get the low (or no) interest rate loan OR you get the manufacturer's rebate. Currently, if you crunch all the numbers, you're better off taking the rebate, because a convential auto loan rate is so low that you'll pay less over the life of the conventional loan than you would if you took the zero interest loan and lost the rebate.
Take, for example, a car priced at $20,000. You can either take a no interest loan or a $4000 manufacturer's rebate. Since most people can't pay 16,000 out of pocket, you go to the bank, where you can get a 5% loan, which will cost you about $1000. Soooo, you end up paying $17,000 (conventional loan and rebate), or you end up paying $20,000 (no interest loan). But, doesn't it sound great to say that you got a no interest loan? ----- Original Message ----- From: <[EMAIL PROTECTED]> To: "CF-Community" <[EMAIL PROTECTED]> Sent: Monday, June 30, 2003 5:50 PM Subject: Re: New car > jon- > > I think your understanding of how this works is right on. > > I also think they realized how low rates are right now, > how much the public perceives they are low, > what size inventory of 2003 cars they had to sell to > make room for the 2004 models, > and this was a good way to pull in buyers > (worked for me!). > > Maybe they are gambling that rates will rise slowly. > Or, maybe they have a commitment from lenders for > funds at low rates? > > -Ben > > > Congratulations :) > > > > I want to branch a little though...isn't 1.9% less than inflation? > > Doesn't that mean that over time, if interest rates rise, they will be > > making less money? Especially considering the fact that with all this > > built in economic stimulus...we are bound to see a really big uptick > > in inflation if/when everything starts to turn around. > > > > Or is my understanding of how this works incorrect? > > > > -- > > jon > > mailto:[EMAIL PROTECTED] > > > > Monday, June 30, 2003, 5:58:29 PM, you wrote: > > <snip> > > > > bcn> The fools were offering 48-month financing at 1.9%. Wow. > > bcn> Even so, wouldn't have been able to afford it if we weren't > > bcn> doing a refi on the mortgage and saving a bunch of $$. > > > > bcn> <vbg> > > > > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Archives: http://www.houseoffusion.com/cf_lists/index.cfm?forumid=5 Subscription: http://www.houseoffusion.com/cf_lists/index.cfm?method=subscribe&forumid=5 Get the mailserver that powers this list at http://www.coolfusion.com Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
