Paying for your DH

[S650 GT]

You have a go fund me in your signature, if you could afford it it still wouldn't be "your own money"

Good try. It's not a loan.

Sponsored

 

[unfairslide]

Good try. It's not a loan.

Yeah it's more like begging.

 

[goodlettjr]

The reason they offer 0% for a while is because almost no one who does these deals pays off their cars in the given timeframe, then they end up owing plenty of interest. These companies are not stupid enough to lose money on finance agreements. On the other hand, they do mess up marketing and quality control quite often.

That is incorrect. They offer 0% loans because they can off load debt and it is cheaper for them to do that. They can then take that cash from the finance arm and reinvest it into products that will give them a better return on investment. It also allows them to keep the pricing on the product at the same level for the consumer. This keeps residual values up for customers and leasees. Overall healthier for any manufacturer. We may see them as a competitor to the bank or credit union, but they have an advantage because they are not just making money on the sale of the vehicle, but interest on floorplan with most dealers, loans, parts, etc..

Also incorrect.... is your statement that if people don't pay it off in 36 so they owe interest. Uhm, this isn't buying a TV at Best buy where they back charge you the interest for not making minimum payments.. This is a car loan. You don't pay the note a few times over 36 months, they reposes the vehicle.

 

[S650 GT]

You dismis

Yeah it's more like begging.

That's what I said. Still better than having debts.

 

[friscoaggie]

You dismis


That's what I said. Still better than having debts.

I’m not arguing in favor of the financial trap of BNPL, I’m saying if you have the cash to pay for a vehicle and you actually pay for said car, on time, over agreed to financing terms it can be an intelligent financial decision. If you want to be debt free on day 1 that’s great, I’ll be debt free 36months later with a few thousand dollars to spare to help pay for more tires.

 

[S650 GT]

I’m not arguing in favor of the financial trap of BNPL, I’m saying if you have the cash to pay for a vehicle and you actually pay for said car, on time, over agreed to financing terms it can be an intelligent financial decision. If you want to be debt free on day 1 that’s great, I’ll be debt free 36months later with a few thousand dollars to spare to help pay for more tires.

This is exactly the reason why I don't finance and you said it.

You needed the money to pay for tires, oil, parts and other service for the car.

That's why I only buy a car which I can afford to buy and service and do all things with the car that I need.

I will never ever buy something I can't afford so I have some "money left" to do something else with.

Sleeping with the fact that somebody owes me money does not feel good.

I will buy a smaller cheaper car instead if I don't have the money for it

 

[friscoaggie]

This is exactly the reason why I don't finance and you said it.

You needed the money to pay for tires, oil, parts and other service for the car.

That's why I only buy a car which I can afford to buy and service and do all things with the car that I need.

I will never ever buy something I can't afford so I have some "money left" to do something else with.

Sleeping with the fact that somebody owes me money does not feel good.

I will buy a smaller cheaper car instead if I don't have the money for it

Ok, I tried. Enjoy your Mustang.

 

[Smaaron]

That is incorrect. They offer 0% loans because they can off load debt and it is cheaper for them to do that. They can then take that cash from the finance arm and reinvest it into products that will give them a better return on investment. It also allows them to keep the pricing on the product at the same level for the consumer. This keeps residual values up for customers and leasees. Overall healthier for any manufacturer. We may see them as a competitor to the bank or credit union, but they have an advantage because they are not just making money on the sale of the vehicle, but interest on floorplan with most dealers, loans, parts, etc..

Also incorrect.... is your statement that if people don't pay it off in 36 so they owe interest. Uhm, this isn't buying a TV at Best buy where they back charge you the interest for not making minimum payments.. This is a car loan. You don't pay the note a few times over 36 months, they reposes the vehicle.

I’m not saying not making minimum payments. I mean if the 0% doesn’t cover the entire loan period. If it does then I have to think there will be additional charges in there somewhere, maybe the cost of the vehicle, fees, or warranties. I do admit that I’ve always paid cash for vehicles so I don’t know much about financing.
My main point is that free money is almost always too good to be true unless it’s actual charity. For example, I may be missing something but how is a 4% interest savings account a good deal if inflation is 4.93%?

 

[shogun32]

You don't pay the note a few times over 36 months, they reposes the vehicle.

You generally have to be 120 days late before they bother

 

[unfairslide]

I’m not saying not making minimum payments. I mean if the 0% doesn’t cover the entire loan period. If it does then I have to think there will be additional charges in there somewhere, maybe the cost of the vehicle, fees, or warranties. I do admit that I’ve always paid cash for vehicles so I don’t know much about financing.
My main point is that free money is almost always too good to be true unless it’s actual charity. For example, I may be missing something but how is a 4% interest savings account a good deal if inflation is 4.93%?

Because your still generating earnings. 4% a year is greater than 0% a year if you pay it all upfront regardless of inflation percentage.

 

[Interstellar]

Plan on putting 50k down on my DH, if the dealer can beat my Credit Union at (currently) 4.9% then I'll finance the rest with them. If there are more delays, then I'll probably just end up paying full amount in cash by the time the car reaches the dealer.

Would you mind sharing with credit union you use? 4.9% is hard to beat right now

 

[Q6543]

Brokerage money markets are 5% plus currently.
TDA, schwab, RH, interactive brokers, etc..

 

[timd38]

One of the joys of being old and retired, pay cash.

 

[shogun32]

One of the joys of being old and retired, pay cash.

and yet your entire livelihood depends on earning interest or drawing down principle. I totally understand paying cash if the rate is higher than you can earn, but in the situation that it isn't, preserving even a little capital is well worth taking on a "free money" loan.

 

[_J¢_]

Would you mind sharing with credit union you use? 4.9% is hard to beat right now

Sure, although it's a local credit union, so unless you live in the area, it might be hard to get approved. Here's the link to the F.C.U
https://www.yolofcu.org/

Sponsored