[orangejeep06]

This happened in Springfield, Mo. (pop 170,000) The doors where locked and 2 people sat inside the dealership. A lady answered the door and said that Due to Covid19, I need to make an appointment now for a test drive.
How long will it be until the auto makers will discount the vehicles sitting on lot hopefully 30% of MSRP, or more????

I also have been seeing TV advertisements from some of the auto makers for 0% financing for 84 months, during the last few days.

Wow 84 months? That would be a huge mistake to finance some sheetmetal and tires for that amount of time. As for that 0% financing i’m sure there’s interest figured into those 84 payments. Some folks never learn.

 

[ReaPer105]

I'm no math whiz but I could figure out no interest from hidden interest in loan payments.

 

[glock collector]

If you can not write a good check for your daily driver, you can not afford one.

 

[SWFlGuy]

If you can not write a good check for your daily driver, you can not afford one.

Serious Glocktalk right there

 

[ReaPer105]

If you can not write a good check for your daily driver, you can not afford one.

I could. But why not let my money work while I pay no interest?

 

[pat701]

Op here, I went thru a very brutal divorce in May 2019. I am on tight money since then. The judge let me keep a 2005 Chevy Cobalt with 180,000 miles on it. I need real advice.

 

[peng]

It's normal for the automakers to have 60, 80 or even 90 days or more of inventory on hand, meaning new cars can sit on the lots for that long before they are sold.

I don't think you'll see discounts like 30% since the entire industry runs on average margins of about 5%.

Depends how long this goes I guess. They are still paying all their bills with no revenue coming in. They are probably counting days and drawing on credit lines where available like other big businesses and crossing their fingers.

 

[glock collector]

Serious Glocktalk right there

explain to me why financing a product that depreciates rapidly is a good idea sir...

 

[JMS]

Wow 84 months? That would be a huge mistake to finance some sheetmetal and tires for that amount of time. As for that 0% financing i’m sure there’s interest figured into those 84 payments. Some folks never learn.

I used to work for Toyota Financial Services so I’m pretty familiar with vehicle financing.

I go to a dealership and pick a vehicle that costs $50k. I negotiate and get the price down to $42k out the door.

I can either stroke a check for $42k or take advantage of a 0% for 84 months so my payment is $500 a month for 84 months.

Explain to me how I’ve paid any interest on it.

 

[hannstv]

If you can negotiate a "cash price" and then decide to finance that same price for 84 months a zero interest, that is one hell'va deal.

 

[Gino]

I used to work for Toyota Financial Services so I’m pretty familiar with vehicle financing.

I go to a dealership and pick a vehicle that costs $50k. I negotiate and get the price down to $42k out the door.

I can either stroke a check for $42k or take advantage of a 0% for 84 months so my payment is $500 a month for 84 months.

Explain to me how I’ve paid any interest on it.

You might be a shrewd businessman, but the average person is going to have surcharges and fees added on, and isn't smart enough to realize it. Add in clearcoat, handling fees, an extended warrantee, etc.

 

[orangejeep06]

I used to work for Toyota Financial Services so I’m pretty familiar with vehicle financing.

I go to a dealership and pick a vehicle that costs $50k. I negotiate and get the price down to $42k out the door.

I can either stroke a check for $42k or take advantage of a 0% for 84 months so my payment is $500 a month for 84 months.

Explain to me how I’ve paid any interest on it.

Wouldn’t you agree that the interest is already added onto whatever the dealer puts as their price? I find it hard to believe the dealership would sell a vehicle without the additional profit of interest.

 

[Gino]

Most dealers make most of their money from their service departments. They just sell new cars to give them the authenticity of being a "Ford Dealer", so they "know how to fix Fords better than anyone else".

Don't expect the prices to go super low. Supposedly, there isn't that much margin for them to lower prices on new cars.

 

[napp32]

If you can not write a good check for your daily driver, you can not afford one.

Anyone with that kind of cash should probably consider collecting something other than Glocks. :homer:

 

[Slackinoff]

Wouldn’t you agree that the interest is already added onto whatever the dealer puts as their price? I find it hard to believe the dealership would sell a vehicle without the additional profit of interest.

The scenario you described is just a price increase on the vehicle. But yes, I believe those those zero percent interest cars probably aren't discounted as much as the others because the dealer makes money by getting some of that interest rate on loans that actually have an interest rate.

 

[Supercharged SS]

The scenario you described is just a price increase on the vehicle. But yes, I believe those those zero percent interest cars probably aren't discounted as much as the others because the dealer makes money by getting some of that interest rate on loans that actually have an interest rate.

Correct. Just bought 4 GM vehicles for my corp.
You dont get all the rebates with the 0% but its pretty basic. Take the out the door price and divide by 84. Pretty simple. No gimmicks. Not sure why so many can't comprehend this.

We keep vehicles for 10 yrs plus so its a no brainer and helps with cash flow.

 

[Taz]

The 0% or other low rates are often instead of all the rebates listed. It’s unlikely that you will get both. Maybe if the economy keeps tanking they might start combining stuff just to get inventory moving. Unlikely though.

0% for any time frame is generally a good thing. You’re using their money to drive a car whine your money is making positive interest. Unless it’s stock market crash day, that is. Even then your money is buying stocks that will return a higher than zero rate...eventually.

Buying stuff at interest rates above the rate that your money can make more is generally bad. Sometimes stuff can’t be avoided though. You’re not going to buy a home these dats with cash. Same for shiny new cars that are trendy and full of features. It’s why I still drive a stick at the lowest trim levels available. Just don’t want to waste $$ on stuff I don’t find important. I have plenty of $$ pits. Don’t need more.

 

[SWFlGuy]

explain to me why financing a product that depreciates rapidly is a good idea sir...

I guess because we’re not all you. Some of us dregs use financing and 0% is as low as it goes.

 

[JMS]

Wouldn’t you agree that the interest is already added onto whatever the dealer puts as their price? I find it hard to believe the dealership would sell a vehicle without the additional profit of interest.

0% is by the corporate owned finance companies not by the dealership. The dealership moves another unit. A lot of people come in for the 0% but don’t qualify but they are already in a buying frame of mind.

I personally won’t discuss payment options until the sales price is agreed upon. There’s an old sales technique called a 4 Square that a lot of people fall for.