Financing question. Need help!
Burning Brakes
Joined: Apr 2007
Posts: 1,129
Likes: 29
From: Lakewood Ranch Florida
Here's my approach: get the lowest price possible on the car, regardless of the interest rate the dealer gets for you; after making just a few payments, refinance the balance owed through a home equity loan (very low rates and tax deductible) or a collateral loan (low rates) from my bank, or loan from a credit union (low rates). OK, it's necessary to be a homeowner with only 1 mortgage or otherwise have your credit rating and financial affairs in good order and to have access to a credit union to take this approach - so not everyone can do this. But if you can, you'll save a ton of money! Think of it this way... it's a good reason to get your financial sh-- together.
Melting Slicks
Joined: May 1999
Posts: 2,886
Likes: 173
From: Scottsdale AZ
St. Jude Donor '11
[QUOTEJ Also, there is no reason to pay off a 0% loan early. 
[/QUOTE]
Now, personally no toy is worth a 72 month loan, but to each his own responsibilities.
I got the 36 month 0% on my 2010. I'm lucky enough to have the ability to pay cash, but why? In fact, when I told my dealer I could pay cash, and would that lower my price, he laughed! (Nicely... good guy). Better negotiated deal taking the GM 0%.
Skip ahead. Haven't had an interest bearing car payment in years. When I did added extra bucks to each payment. Saved money. Had that same thought recently. Suggested to my wife I should double up my Corvette payment. She looked at me... Why!?! It's friggin 0%!!!!
You always use their money when you can.
Good luck with your decision!
[/QUOTE]
Now, personally no toy is worth a 72 month loan, but to each his own responsibilities.
I got the 36 month 0% on my 2010. I'm lucky enough to have the ability to pay cash, but why? In fact, when I told my dealer I could pay cash, and would that lower my price, he laughed! (Nicely... good guy). Better negotiated deal taking the GM 0%.
Skip ahead. Haven't had an interest bearing car payment in years. When I did added extra bucks to each payment. Saved money. Had that same thought recently. Suggested to my wife I should double up my Corvette payment. She looked at me... Why!?! It's friggin 0%!!!!
You always use their money when you can.
Good luck with your decision!
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Le Mans Master
Joined: Jan 2009
Posts: 6,113
Likes: 8
From: Pottsboro; Sometimes Dallas Texas
St. Jude Donor '12
here's a good way to look at it:
Pay 0% OR pay 3.5%???
Zero is answer....even if 4k comes off....
edit: time is factor in this case...
Pay 0% OR pay 3.5%???
Zero is answer....even if 4k comes off....
edit: time is factor in this case...
Last edited by tim414; Jan 10, 2011 at 01:40 AM.
Melting Slicks
Joined: Sep 2009
Posts: 2,576
Likes: 206
From: Mooresville North Carolina
St. Jude Donor '10-'11-'12-'13-'14-'15-'16-'17-'18
Racer
Joined: Oct 2009
Posts: 495
Likes: 5
From: Charlotte NC
If there's no penalty for paying it off early and you are otherwise financially sound, then I would take the $4K. If you are worried about your job or the cost is already cutting into your budget, then take the 0%.
Le Mans Master
Joined: Feb 2007
Posts: 8,514
Likes: 235
From: Currently somewhere in IL,IN,KY,TN,MO,AR,MS,AL, or FL
Comparing apples to apples:
$63K, 0% interest, $1K/month is paid off in 63 months
$59K, 3.89% interest, $1K/month is paid off in 65.5 months.
If those are the only 2 options, then you made the right decision.
If, on the other hand, you paid $2K/month then the $4K off deal would have been better.
$63K, 0% interest, $1K/month is paid off in 63 months
$59K, 3.89% interest, $1K/month is paid off in 65.5 months.
If those are the only 2 options, then you made the right decision.
If, on the other hand, you paid $2K/month then the $4K off deal would have been better.
Race Director
Joined: Jul 2010
Posts: 10,548
Likes: 176
From: Upstate NY
So here is the scenario. I am about to sign on my 2010 GS tomorrow and I opted to go with the 0 percent financing. I am financing 63000 for 72 months @ 875 per month.
Now I could take another 4 grand off and finance @ 3.89 % for 72 months. Payments would be about 920 per month. Which if I only paid the 920 a month it would cost me about 3,240 bucks extra to do this.
Now my plan is to pay 1000 per month on the 0 percent option. So knowing that I am going to pay 1000 a month would it be a better option to take the extra 4 grand off and finance 59000? Would I save anything buy doing this?
Now I could take another 4 grand off and finance @ 3.89 % for 72 months. Payments would be about 920 per month. Which if I only paid the 920 a month it would cost me about 3,240 bucks extra to do this.
Now my plan is to pay 1000 per month on the 0 percent option. So knowing that I am going to pay 1000 a month would it be a better option to take the extra 4 grand off and finance 59000? Would I save anything buy doing this?
Melting Slicks
Joined: Oct 2010
Posts: 2,314
Likes: 4
From: Cape May, NJ; Guntersville, AL; Orange Beach, AL
Le Mans Master
Joined: Jan 2009
Posts: 6,113
Likes: 8
From: Pottsboro; Sometimes Dallas Texas
St. Jude Donor '12
Now, personally no toy is worth a 72 month loan, but to each his own responsibilities.
I got the 36 month 0% on my 2010. I'm lucky enough to have the ability to pay cash, but why? In fact, when I told my dealer I could pay cash, and would that lower my price, he laughed! (Nicely... good guy). Better negotiated deal taking the GM 0%.
Skip ahead. Haven't had an interest bearing car payment in years. When I did added extra bucks to each payment. Saved money. Had that same thought recently. Suggested to my wife I should double up my Corvette payment. She looked at me... Why!?! It's friggin 0%!!!!
You always use their money when you can.
Good luck with your decision!
[/QUOTE] My thoughts exactly and what I did w/my Z06....FREE MONEY and let YOUR/MY money work for ya!! 
2009 ZR1 SN 1166
Joined: Jan 2006
Posts: 1,654
Likes: 28
From: Toronto Ontario
Gotta go w/ the 0% for 72 months. 
You do not wanna pay interest on a 72 month loan.
Also, there is no reason to pay off a 0% loan early.
It would be a good plan to set aside the $1000/month, that you said , but only pay the $875. That way you save $125/month for $$ emergencies.
You do not wanna pay interest on a 72 month loan.
Also, there is no reason to pay off a 0% loan early.
It would be a good plan to set aside the $1000/month, that you said , but only pay the $875. That way you save $125/month for $$ emergencies.
Thread Starter
Burning Brakes
Joined: Jun 2009
Posts: 925
Likes: 7
From: Chesterfield Michigan
This is where I get confused. My last vette was an 08 coupe. I ordered it in May of 07. I ended up selling it late in 08. 2008 is when the economy just fell apart and my business had it's worst year ever. Now that the economy has stabilized things are much better and 2010 was our best year ever so now I'm ready to get my vette back. I could of kept the 08 vette but I just wasn't sure where things were going and was trying to be responsible by not keeping a 900 a month toy.
Anyways when I sold that vette I ended up making about 3 grand. The payment was 850 and I paid a grand a month to stay ahead of the game. Now on that car all I got as a discount was the GM employee discount and I think a 500 rebate. My interest rate was 6 percent which at the time was pretty good.
On this vette I got 11 thousand off if sticker along with 0 percent financing. So how is it that some people are saying that I'm going to be sunk by not taking the 4000 extra?
