What car do you drive?

[Cruiser]

When a low or 0 percent interest rate is offered by an auto company, it is usually offered at the same time a rebate is also being offered although they don't ballyhoo the rebate like they do the financing; and this is an either/or proposition. You take the rebate or the low interest rate, but not both. And then there is the factory to dealer rebates that you probably aren't even aware of at the time of purchase. In most situations the customer is better off taking the rebate instead of the low financing, even if it is 0 percent.

For example, if you take the 0 percent interest instead of a $2000 rebate, you've just paid $2000 in interest up front. Not only that but if you live in a State with high sales taxes you've just paid sales tax on that additional $2000 that you paid for the car. And then beware the dealer, and many do this, that charges a fee for processing your credit application.

At the end of the day the dealer's objective is to make a profit by getting as much of your money as he can. And if you tell them that you are ready, willing, and able to do one thing and the salesman suggests something else under the guise that it will be beneficial to you, buyer beware. After all, how often have you offered a car salesman $23,000 for a car and he counter-offered with $22,000?

Cruiser

[ksinc]

Originally Posted by Cruiser

After all, how often have you offered a car salesman $23,000 for a car and he counter-offered with $22,000?

Cruiser

Well, you know what, that might happen at some that are run by the government now!

Of course, they'll get the extra $1,000 from Eagle with a wealth-tax on savings someday

[smujd]

Originally Posted by Cruiser

When a low or 0 percent interest rate is offered by an auto company, it is usually offered at the same time a rebate is also being offered although they don't ballyhoo the rebate like they do the financing; and this is an either/or proposition. You take the rebate or the low interest rate, but not both. And then there is the factory to dealer rebates that you probably aren't even aware of at the time of purchase. In most situations the customer is better off taking the rebate instead of the low financing, even if it is 0 percent.

For example, if you take the 0 percent interest instead of a $2000 rebate, you've just paid $2000 in interest up front. Not only that but if you live in a State with high sales taxes you've just paid sales tax on that additional $2000 that you paid for the car. And then beware the dealer, and many do this, that charges a fee for processing your credit application.

At the end of the day the dealer's objective is to make a profit by getting as much of your money as he can. And if you tell them that you are ready, willing, and able to do one thing and the salesman suggests something else under the guise that it will be beneficial to you, buyer beware. After all, how often have you offered a car salesman $23,000 for a car and he counter-offered with $22,000?

Cruiser

If it's one or the other, I agree. With my wife's car, no rebate was being offered. When I bought my truck, I took both the rebate and 0% financing!

[eagle2250]

Originally Posted by ksinc

Interesting story ... I know someone that took out 2nd mortgage money to pay off their car because a neighbor 'in real estate' (actually was in mortgages) told them the home mortgage interest was deductible. So, they thought that meant it was 'free' and better then the 0.9% dealer financing ... of course, the 2nd is variable, yada yada, and now at 8% interest ... then their hours were cut back to half ... they lost their benefits too ... So, now the same neighbor is advising them on a short sale (apparently a lot of former mortgage brokers are now doing this instead.) Of course, this was all part of a 'woe is me' story as to why they couldn't pay us what they owe us either. I told them they should call the Hope4Homeowners Hotline and inquire about fraud on the mortgage broker. Probably a dead end, but definitely immoral mortgage practice IMHO. There must be a lot of people that fell for this kind of "advice." "In real estate", huh? sad, really sad. It reminds me of the people that say I should buy lunch all the time because I just "write it off; right?"

People foolish enough to finance vehicle purchases from the equity in their homes are doomed to, at some point in their future, find themselves homeless, driving around in and living out of a depreciating asset. Not a good thing, methinks!

Originally Posted by ksinc

Well, you know what, that might happen at some that are run by the government now!

Of course, they'll get the extra $1,000 from Eagle with a wealth-tax on savings someday

LOL! If I don't cease and desist with this seemingly never-ending clothes and shoe purchasing binge, they won't be able to do that. However, that old adage, "if you can't pay for it now, you can not afford it", holds true for vehicles, as well as any other item we purchase, other than our homes!