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Posted: 7/20/2008 10:33:54 AM EDT
What's the catch when car dealerships offer 0% APR? Other than needing great credit to qualify, what are they hiding?
Link Posted: 7/20/2008 10:34:35 AM EDT
Little or no discounts off MSRP
Link Posted: 7/20/2008 10:35:22 AM EDT

Originally Posted By MTUSA:
Little or no discounts off MSRP


+1

They'll try to sell you everything but the sink. I.E. extended warranty, undercoating, bed liner, etc.
Link Posted: 7/20/2008 10:36:04 AM EDT

Originally Posted By MTUSA:
Little or no discounts off MSRP


yup... you have to finance throught them and they'll get you at sticker.
Link Posted: 7/20/2008 10:36:36 AM EDT
It can be 0% apr. But that will lower your guard and you will pay in other ways.

May the force be with you.
Link Posted: 7/20/2008 10:37:50 AM EDT
They will also hit you with a "monthly loan service charge"...usually 15 to 30 bucks a month. Read the fine print!
Link Posted: 7/20/2008 10:42:37 AM EDT
Dont listen to these guys, I have bought 0% and you get the same discounts. The car companies (not the dealerships) start coming out with 0% financing if they feel they may not be able to move stock before they start to roll out the new yaear models
Link Posted: 7/20/2008 10:44:14 AM EDT

Originally Posted By shootemup:

Originally Posted By MTUSA:
Little or no discounts off MSRP


+1

They'll try to sell you everything but the sink. I.E. extended warranty, undercoating, bed liner, etc.


My dealer tried to sell me bed liner on my convertible
Link Posted: 7/20/2008 10:45:28 AM EDT
If you are not sure, go in there telling them you are financing through your personal bank or credit union. Dicker down your price, then ask about the 0% APR. I have done that and the price didn't change. Also no problem in the fine print.

Have already paid off that vehicle and saved about $3500 in interest.
Link Posted: 7/20/2008 10:46:55 AM EDT
Thanks for the replies. I'm not in the market for a new car, I've just noticed a lot of car ads recently with 0% APR, so I was just curious.
Link Posted: 7/20/2008 10:46:59 AM EDT
Do you remember the pre 9/11/01 little sayings "$2000 cash back to dealer" or "Rebates to dealer"? Well, those have been repackaged to cover your roughly $2000 dollar finance charge.

It is just a shell game.

Pay cash save more money.
Link Posted: 7/20/2008 10:54:38 AM EDT
48 mo same as cash......

But if you actually pay in cash we will give you a discount.

They are just jacking up the price
Link Posted: 7/20/2008 10:54:51 AM EDT
screen price plus interest = new screen price at 0%
Link Posted: 7/20/2008 11:55:56 AM EDT
I have purchased Chevy products with the zero percent offer. I still negotiated the vehicle to the dealer invoice (below MSRP) and then qualified for the zero percent. Admittedly you must have good credit, but is is a way to move the vehicle.

Paying cash is good sometimes.

Paying no interest is good sometimes.

Paying a lot of interest is bad almost always.
Link Posted: 7/20/2008 12:06:05 PM EDT
Mine was at 1.9% but that was on a short term loan and was set after my price
Link Posted: 7/20/2008 12:10:16 PM EDT
Just save up enough cash to buy what you want.


Go in and pretend to be ignorant when it comes to financing, let them think they're going to screw you with a high interest rate. Use that to negotiate a lower selling price, but insist on no penalty for paying off the loan early (just in case I win the lotto, duhr). Make the deal and pay off the car with your first loan payment.

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