Deanna- Very valid argument in general.
In my case, it was a choice between 1.9% financing and a $950 rebate. And the purchase price was a lot more than $20K :-( So the lower rate loan won. -Ben > 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 Host with the leader in ColdFusion hosting. Voted #1 ColdFusion host by CF Developers. Offering shared and dedicated hosting options. www.cfxhosting.com/default.cfm?redirect=10481 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
