auto financing....0% for 72 months!

GTLifter · 07-07-2008, 11:14 AM

I saw a GM dealer advertising this over the weekend and makes me wonder how bad the auto industry is hurting overall.

I'm tempted to go buy a new car and use a student loan to pay for it. I probably don't qualify for the 0% but I'm sure my dad does. How bad of an idea is this? Sounds too good to be tru to me.

Tweak · 07-07-2008, 11:22 AM

6 years is a looooooong time to be making car payments, imo. But if that doesn't bother you, go for it.

I'm also looking at new cars-- my Dad wants me to look at getting a Nissan Sentra.

Mr. Cooper · 07-07-2008, 11:35 AM

The longest I'd do an auto loan for is 60 months. Although a few years back I would have said the longest I'd do an auto lon for is 48 months.

Kabeetz · 07-07-2008, 11:39 AM

6 years is a long time but at 0% interest who cares. You're literally paying 1/72 of whatever price you agree to, after the downpayment, every month. That kicks serious ass.

And they certainly don't mind if you want to do a 36, 48 or 60 month deal if you prefer.

JoeD · 07-07-2008, 11:40 AM

Quote:

Originally Posted by Tweak

6 years is a looooooong time to be making car payments, imo. But if that doesn't bother you, go for it.

I'm also looking at new cars-- my Dad wants me to look at getting a Nissan Sentra.

I have a 2000 Nissan Sentra. It is very good on gas and has been very cheap to maintain so far. Good car!

GTLifter · 07-07-2008, 11:42 AM

I wouldn't take 6 years to pay it off. By then I will have graduated and will be making enough to pay it off early.

Big Sky Guy · 07-07-2008, 11:47 AM

My dad got a 0% deal 6 years ago on his Chevy Duramax, but he had to pay it off in 48 months. The payments were $700/month...not easy to pull!

Ulter · 07-07-2008, 11:47 AM

I agree, it's free money so why not go 6 years? Like you said GM is desperate and I think the other US automakers will be right behind them by summer's end.

GTLifter · 07-07-2008, 11:49 AM

Quote:

Originally Posted by Big Sky Guy

My dad got a 0% deal 6 years ago on his Chevy Duramax, but he had to pay it off in 48 months. The payments were $700/month...not easy to pull!

Well a Duramax is a $50+K truck while I'd be looking in the $20K range.

Quote:

Originally Posted by Ulter

I agree, it's free money so why not go 6 years? Like you said GM is desperate and I think the other US automakers will be right behind them by summer's end.

I think I'm going to talk to the 'rents since they will probably have to co-sign.

2ez2brich · 07-07-2008, 12:00 PM

Going 72 months at 0% will give you the lowest payments....but you can always add more to increase the monthly payment.

If the prices have not increased.....this is a good deal.

Less the fact that cars depreciate as soon as it is driven off the lot. I have seen the advertisements for the last 2wks. I say go for it....but don't over do it despite the 0% deal.

Kabeetz · 07-07-2008, 12:41 PM

I don't know how savvy u are with car bargaining... but u can get the invoice price from edmunds.com and a good deal should leave you paying a couple hundred below invoice for american, even with the no interest. And don't settle for that whole u can only get the color/options on the lot crap. Get the exact car u want at the exact price u are willing to pay.

I like to use 3 dealerships... I go to the first one and spend a couple hours getting the best deal I can. Go to the second with my best offer and the exact car i want, tell him i want his bottom line best deal. If its worse, tell him I already got a better offer... beat it. Then go to a third, tell him the best offer I got and ask him to beat it.

If he can, I call the first guy and give him the option to match since I spent so much time with him. If he can't beat the offer from the 1st or 2nd guy, I know I already have a deal I can be proud of and buy from whoever offered it.

Hidngod · 07-07-2008, 01:14 PM

A guy I work with took that deal on a Ford last year. It was available the year before, too. He was gonna pay cash on a Ranger so he took the money he would have spent & invested it.

GTLifter · 07-07-2008, 01:17 PM

Quote:

Originally Posted by Kabeetz

I don't know how savvy u are with car bargaining

I'm not very savvy but a buddy of mine used to be a car salesman has said he is willing to go along and negotiate for me.

fite4$ · 07-07-2008, 02:37 PM

Buy a crapwagon, save your money, and trade up when you've got some bank.

Sue Me · 07-07-2008, 03:02 PM

Technically, yes you would be receiving 0% financing on the primary loan on the car....but you are accumulating interest at a student loan rate - depending on the origination of the loan (pre-June or Post-June '08) and the index and margin, it might be the equivalent of financing at 7 - 9% which is shit. On top of the fact, if you are not making interest payments on the student loans, then that is adding back to the outstanding balance, and then interest in continously calculated upon the new balance....

GTLifter · 07-07-2008, 04:19 PM

Quote:

Originally Posted by Sue Me

Technically, yes you would be receiving 0% financing on the primary loan on the car....but you are accumulating interest at a student loan rate - depending on the origination of the loan (pre-June or Post-June '08) and the index and margin, it might be the equivalent of financing at 7 - 9% which is shit. On top of the fact, if you are not making interest payments on the student loans, then that is adding back to the outstanding balance, and then interest in continously calculated upon the new balance....

that's definitely something to remember...

I was thinking that somehting in the $18K price range would be good and I have about $4k I can put as a down payment which leaves abour $14K spread over 72 months or about $200/month which I cna make on a weekend. So it might be possible to do it without taking out a student loan. I'll probably end up taking that $4k and getting something like a used civic.

JoeD · 07-07-2008, 04:36 PM

Quote:

Originally Posted by GTLifter

. I'll probably end up taking that $4k and getting something like a used civic.

That's probably the smartest thing economically speaking. I can't find it but someone actually did an article explaining buying a GOOD used car in the 4-8K range and driving it until it dies saves a lot more money in the long run then buying a new car in the 20K range.

07-07-2008, 11:14 AM	#1 (permalink)
GTLifter www.prowriststraps.com Join Date: Feb 2007 Location: Which way to the beach? Posts: 2,742 Rep Power: 213942	auto financing....0% for 72 months! I saw a GM dealer advertising this over the weekend and makes me wonder how bad the auto industry is hurting overall. I'm tempted to go buy a new car and use a student loan to pay for it. I probably don't qualify for the 0% but I'm sure my dad does. How bad of an idea is this? Sounds too good to be tru to me.

07-07-2008, 11:22 AM	#2 (permalink)
Tweak Probably kind of sweaty Join Date: Feb 2007 Location: Banana phone Posts: 4,425 Rep Power: 578524	6 years is a looooooong time to be making car payments, imo. But if that doesn't bother you, go for it. I'm also looking at new cars-- my Dad wants me to look at getting a Nissan Sentra. __________________ Tweak's 2009 Ms Natural MN Log

07-07-2008, 11:47 AM	#8 (permalink)
Ulter Chairman of the board Join Date: Feb 2000 Location: Orlando Posts: 28,326 Rep Power: 457702	I agree, it's free money so why not go 6 years? Like you said GM is desperate and I think the other US automakers will be right behind them by summer's end. __________________ > . . When you register at www.theafstore.com make sure you register as an AF Board Member to get the discounted pricing.

07-07-2008, 12:41 PM	#11 (permalink)
Kabeetz Gold Member Join Date: Feb 2007 Location: N.Y. Posts: 6,749 Rep Power: 230441	I don't know how savvy u are with car bargaining... but u can get the invoice price from edmunds.com and a good deal should leave you paying a couple hundred below invoice for american, even with the no interest. And don't settle for that whole u can only get the color/options on the lot crap. Get the exact car u want at the exact price u are willing to pay. I like to use 3 dealerships... I go to the first one and spend a couple hours getting the best deal I can. Go to the second with my best offer and the exact car i want, tell him i want his bottom line best deal. If its worse, tell him I already got a better offer... beat it. Then go to a third, tell him the best offer I got and ask him to beat it. If he can, I call the first guy and give him the option to match since I spent so much time with him. If he can't beat the offer from the 1st or 2nd guy, I know I already have a deal I can be proud of and buy from whoever offered it. __________________ "All you can do is stand and, worst thing you can do is panic. Use it to your advantage, avoid insanity manage. To conquer... Every obstacle, make impossible possible. Even when winning's illogical, losing's still far from optional." - T.I. "No Matter What"

07-07-2008, 11:35 AM	#3 (permalink)
Mr. Cooper Gold Member Join Date: Feb 2008 Location: Minneapolis Posts: 219 Rep Power: 11060	The longest I'd do an auto loan for is 60 months. Although a few years back I would have said the longest I'd do an auto lon for is 48 months.

07-07-2008, 11:42 AM	#6 (permalink)
GTLifter www.prowriststraps.com Join Date: Feb 2007 Location: Which way to the beach? Posts: 2,742 Rep Power: 213942	I wouldn't take 6 years to pay it off. By then I will have graduated and will be making enough to pay it off early.

07-07-2008, 11:47 AM	#7 (permalink)
Big Sky Guy Gold Member Join Date: Feb 2002 Location: MT Posts: 3,061 Rep Power: 520138	My dad got a 0% deal 6 years ago on his Chevy Duramax, but he had to pay it off in 48 months. The payments were $700/month...not easy to pull!

07-07-2008, 12:00 PM	#10 (permalink)
2ez2brich Connoisseur of Women Join Date: Feb 2002 Location: New York, but I love Philly. Posts: 2,121 Rep Power: 135309	Going 72 months at 0% will give you the lowest payments....but you can always add more to increase the monthly payment. If the prices have not increased.....this is a good deal. Less the fact that cars depreciate as soon as it is driven off the lot. I have seen the advertisements for the last 2wks. I say go for it....but don't over do it despite the 0% deal.

07-07-2008, 02:37 PM	#14 (permalink)
fite4$ Gold Member Join Date: May 2007 Posts: 460 Rep Power: 69273	Buy a crapwagon, save your money, and trade up when you've got some bank.

07-07-2008, 03:02 PM	#15 (permalink)
Sue Me Scumbag Banker Join Date: Feb 2007 Posts: 626 Rep Power: 24345	Technically, yes you would be receiving 0% financing on the primary loan on the car....but you are accumulating interest at a student loan rate - depending on the origination of the loan (pre-June or Post-June '08) and the index and margin, it might be the equivalent of financing at 7 - 9% which is shit. On top of the fact, if you are not making interest payments on the student loans, then that is adding back to the outstanding balance, and then interest in continously calculated upon the new balance....