Quote:
Originally Posted by Phanuthier
Really? What is the trick? I actually paid for my car in cash, cause I didn't like my financing options.
|
Asking
Car manufactures don't get some magical 0% rates from the banks they then pass on to you. They offer 0% financing as a purchase incentive since they are obviously losing money at that rate. Every time I've ever looked in to "0% financing" there is always a cash back incentive that is exclusive to it and often much more lucrative. When I bought my new truck I could get 0% financing for 4 years or a $5,000 cash incentive.
Based on the amount I borrowed and the fact that I could pay it down at my own pace (faster) it made more sense to take the cash. That and interest on a car loan isn't tax deductible where as interest on an investment is. Double win.