Quote:
Originally Posted by calumniate
That interest rate differential is real? Seems like a bit of a salesman's crutch. 'Look the interest rates of used cars are higher than new cars. Might as well buy new.. #### rationality'
I get it, I guess. But it seems like dirty pool
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Laying out options and explaining the pros and cons is dirty pool?? This is exactly what I mean by "too much misinformation." Did you read through the math in my post? Which makes more sense to you?
When you break down payments and total cost of ownership it is 100% rational. It is a simple question and as a sales professional needs to be asked. "Would you rather pay $6700 in interest or $0 interest and drive a brand new vehicle for the same monthly cost? The numbers I used are real and not just ones picked at random. On new vehicles the interest rate is determined by the manufacturer as they buy down the rates (sub vented rates) OAC. On used vehicles the rate is determined by the banks and will fluctuate based on term, credit history, down payment amount borrowed etc...
*This does not apply to a cash buyer, where to cost of borrowing does not matter, but they are very rare.