From someone who understands financing...
JoshMcMadMac said:
Well, although I can see the reasoning for cleaning up this thread, I had legitimate input on the deal itself:
With the 0% financing, you cannot get any other rebates, discounts, or incentives. Also, there is an additional $13.89/month/$1000. This is all fine print in the deal.
I don't know how that is off topic, or why it should be deleted. Let's throttle back on the ol' censor-stick, eh?
Does anybody in this thread understand financing? There is NOT an additional $13.89 per $1000 financed, that is your MONTHLY PAYMENT per 1000 financed. With no interest charges, your monthly payment is simply $xx,xxxx / 72 = your payment. With each $1000 you finance, you pay 1000 / 72 = $13.8888 (rounded up to $13.89).
And FYI, this is a great deal if you work your cards right. For example, on a $25,000 car financed for 72 months, assuming you have excellent credit rating and are able to get a 6% interest for 72 months which would be outstanding, your monthly payment would be $414.32 and you would have paid $4,831.23 in interest charges . If you had 0% interest, your payment would be $347.22 and of course paying no interest. That's a savings of $67.10 a month. Which multiplied by 6 years ends up being a lot of dough. (Note I didn't figure Tax or other license,registration fees in this number).
Now, of course you may say that you do not get rebates with this. That is true. But unless the rebates are greater than $4,831.23 then you are still better off with this method. This of course assumes the fact that you would be making all 72 payments as scheduled, and don't have a ton of money to just appear out of nowhere to make extra payments with. In addition, although you may not get rebates, MOST dealers if you push them hard enough will give you Invoice price on the car. It doesn't matter to them that you are financing at 0% for 72 through Ford. Go in and ask to see the car's invoice, and if it's not a high demand low availability car you will probably get your wish. As a side note, to help arrive at that invoice price I would suggest when you are negotiating the deal that you do not mention anything about going with the 0% for 72 mo because they may be more willing to give you that invoice price if they can sell your loan to a local bank, etc. and make a little money in the Financing department by getting you to finance through one of their banks. I know how this works as I used to sell new cars unfortunately.
So assuming you save all that interest, plus are savvy enough to negotiate a car at invoice, you got one heck of a deal on your hands...and coupled with their extended powertrain warranty which is now standard free of charge on their vehicles (I believe 5yr 60K miles now on 2006's) it's an even better deal.
