Zero 72

[twister9150]

Isn’t this about the time of the year when they run the 0% for 72 months?

Been looking for a long time and may pull the trigger if they offer it again.

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[GTFORMULA]

Im waiting for that too. But might wait another year to get a 19 instead.

 

[Cardude99]

Labor day sales or there abouts

 

[sigintel]

Thats insane.
72 months for a car is crazy.
Buy a used 40-60k mile Accord (built in Marysville Ohio), save your money for 3 years, then get a GT350 when the economy crashes cause we are long in the tooth on this consumer spending bull market.

 

[TomcatDriver]

Thats insane.
72 months for a car is crazy.
Buy a used 40-60k mile Accord (built in Marysville Ohio), save your money for 3 years, then get a GT350 when the economy crashes cause we are long in the tooth on this consumer spending bull market.

I would usually agree with those sentiments, however 0% is 0%, and if you can get 0% it makes sense to take the longest loan term offered. It's "free" money. That being said it is almost always offered as an "either/or" with some large incentive, which requires doing a little math.

So let's say you're financing a nominal $40K and can get 2.5% 60 month from your local credit union, and Ford is offering 0%/72 months OR $3000 cash. You are better off going for the cash. But if your best interest rate is 3%...you're still better off with the cash. BUT at 3.5% you are better off going with the 0% loan.

 

[sigintel]

I would usually agree with those sentiments, however 0% is 0%, and if you can get 0% it makes sense to take the longest loan term offered. It's "free" money. That being said it is almost always offered as an "either/or" with some large incentive, which requires doing a little math.

So let's say you're financing a nominal $40K and can get 2.5% 60 month from your local credit union, and Ford is offering 0%/72 months OR $3000 cash. You are better off going for the cash. But if your best interest rate is 3%...you're still better off with the cash. BUT at 3.5% you are better off going with the 0% loan.

Hmmm... Giving up the cash incentive to take that financing.
That means you are paying up front an extra $3000 that is added to principle. 6 yrs at 3.5% on 3k is 105 x 3 = 630 interest plus 3000 principle = 3630?

For 3 years, you are going to be driving a 3 year old car. Why not just start with a 3 year old car and spend 50% as much?

Dunno, just seems like a huge premium to pay to end up with a 6 year old muscle car.

I'm not one to talk, lol. Paid 29,5 (31,9 OTD) for a 2015 base GT. 34 months later, I am getting 23,6 for it and picking up a 2018 PP1 at 34,5 (MSRP 41,500). So roughly 10,900 burnt total; or roughly 320.60 per month.
Would I do better at 0% at 72 months?
Would that leave me underwater after 3 years if I want to trade up?
Math hurts my head..

 

[GagneGo]

No rules on paying off early

 

[TomcatDriver]

Hmmm... Giving up the cash incentive to take that financing.
That means you are paying up front an extra $3000 that is added to principle. 6 yrs at 3.5% on 3k is 105 x 3 = 630 interest plus 3000 principle = 3630?

For 3 years, you are going to be driving a 3 year old car. Why not just start with a 3 year old car and spend 50% as much?

Dunno, just seems like a huge premium to pay to end up with a 6 year old muscle car.

I'm not one to talk, lol. Paid 29,5 (31,9 OTD) for a 2015 base GT. 34 months later, I am getting 23,6 for it and picking up a 2018 PP1 at 34,5 (MSRP 41,500). So roughly 10,900 burnt total; or roughly 320.60 per month.
Would I do better at 0% at 72 months?
Would that leave me underwater after 3 years if I want to trade up?
Math hurts my head..

There are a bunch of calculators on line, just google.

And I assumed that 40K would be 37K financed if you took the rebate instead of 0%. How much underwater you are is irrelevant if you are disciplined. All things being equal (which they never are) you should always take the longest term available for 0% (or any below inflation) financing. If it's a trade-off with a cash-back offer you have to do some math to figure it out.

So your $40K 0% car over 72 months is $555/month. In 6 years (assuming 2.5% inflation) that $555 is going to have the buying power of $478, or you can look at it as your 2018 $555 is going to be worth $643 in 2023 dollars (but you still pay $555 in 2023 dollars). Future money is discounted.

I will add, that if money is tight, Mustang probably isn't the car for anybody. But that doesn't mean you can't figure out a way to make the transaction as financially advantageous to you as possible. I usually buy with Credit Union financing locked in. If the dealer can beat it, I let them, but I know exactly what the trade-off is between rebate and interest rate.

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