Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.


Sign in to follow this  

0% APR 84 mo Coronavirus deals?

Recommended Posts

Most of the ad language reads about the same across the nation, but can't find these answers. 

 

Have the prices of the cars been raised to accommodate that deal?

Do you know if they include early pay off penalties?

 

Thanks

Share this post


Link to post
Share on other sites

The only auto finance companies that I'm aware that have early payoff penalties are scumprime lenders whose names contain the word "acceptance".

 

The problem with 84 month (that's 7 years, or 23% of a 30 year mortgage) financing is the vehicle will be worn out and worthless before you're done paying for it.

Share this post


Link to post
Share on other sites

Oh, thanks!

I just wanted to get in on the 0% Apr which I'm not finding on shorter loans. That's why I asked about early payoff, so I have the choice to pay as soon as I want.

They just don't let you see that part before apping. Still thinking about it though.

Share this post


Link to post
Share on other sites

In general the 0% deals that are being advertised are from the manufacturers' captive finance companies.  I would be really surprised if any of those offers had a prepayment penalty.

 

It's possible that in your market you'll see 0% long-term financing but no rebates, where two months ago there were no APR offers but customer rebates and dealer incentives worth three times the extra interest you'd pay at the higher APR.

 

Bottom line, like any other time, get a car if you need one.  If you don't, wait, especially if you have a trade-in. 

 

Used car values are dropping, so any savings you hoped to achieve from cheap financing may have already been erased (and then some) by the drop in your current vehicle's value (which may be temporary).

 

Share this post


Link to post
Share on other sites
22 hours ago, Kiai said:

Most of the ad language reads about the same across the nation, but can't find these answers. 

 

Have the prices of the cars been raised to accommodate that deal?

Do you know if they include early pay off penalties?

 

Legitimate lenders don't have pre-payment penalties. 

 

What you are apt to see, with respect to deals, is that this three-months deferred stuff is basically replacing the rebates that used to be all over the place.  Negotiating a price is still something that some people are capable of doing while others remain victim's of the four-box con...

 

Bottom line is that a price either makes sense to the individual consumer and a deal is consummated OR it makes no sense and the consumer walks out the door....

Share this post


Link to post
Share on other sites

If a captive offered a 0% APR loan for a term up to 84 months, there would be no restrictions to write the contract for a shorter term.  So you could easily have the finance person just change the terms for 84 to 36.   Very simply, just a couple clicks.

Share this post


Link to post
Share on other sites
11 hours ago, MarvBear said:

If a captive offered a 0% APR loan for a term up to 84 months, there would be no restrictions to write the contract for a shorter term.  So you could easily have the finance person just change the terms for 84 to 36.   Very simply, just a couple clicks.

Thank you so much! I didn't know that, well obviously! ha

Share this post


Link to post
Share on other sites
On 4/19/2020 at 2:57 PM, hegemony said:

if you need to finance for more than 36 months, even at "zero" percent then you're buying too much vehicle and putting yourself in an upside-down situation for years.

I think the key word here is need.  I would argue your money is better spent earning a return than buying the car outright (or paying it in a shorter term).  I would utilize every bit of the free money I could, especially if you are intending to keep it for that long anyway.  Upside-down is not an issue if you have the means to extract yourself from it.   

 

The problem is going to come when someone who could afford a $20k car buys a $40k car because they can get a low payment and then something happens...

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Similar Content

    • By FunnyDonut
      Short Answer: It saves you a lot of money
      According to a recent research from Freddie Mac, the average borrower could save $1,500 just by getting one extra rate quote when applying for their mortgage. With five quotes, they could save $3,000 or more.
       

       
      Wow, so I should really do it. But how exactly should I do mortgage shopping?
       
      Preparation: Estimate your mortgage rate
      There is an old Chinese saying from The Art of War that “If you know your enemies and know yourself, you will not be imperiled in a hundred battles.” That’s exactly why this step matters. Having a rough idea of what interest rate you can expect is crucial for you to play well in this game.

       
      There are many factors that determined your interest rates including base rate (update daily), loan amount, location, LTV (loan to value ratio), credit score, house type (single family vs condo) etc.
       
      So to help yourself estimate, you can talk to your friends who have done mortgage recently and ask about their rates and how they get them. There are also some anonymous mortgage reporting site (such as rate.exposed) to get more data point. Keep in mind the best way to estimate your rates is comparing with people with similar cases.

       
      Now, let’s pick up the phone and start dialing
       
      You can follow the steps here:
      Call 5 lenders, ask them to quote and write the numbers down Find the best quote from the 5 lenders, let’s call it lender A Call the rest 4 lenders again asking them to match (or even beat) the quote from lender A. If you get a quote better than lender A, go back to step 2 and step 3 to call the rest to match Until the number can’t go lower and the rate is within your expectation.
       
       
      Extra Tip 1: Ask for special program
      Different lenders have different promotional program. For example, Wells Fargo has relationship discount where for every $250k asset you move to WF bank account, you get your rate reduced by 0.125%.
      You might just save yourself $10k but just a simple ask
       
      Extra Tip 2: Credit Hard Pull
      Many people are worried about hurting the credit scores by having too many lenders hard pull your credits. In fact, if you do them within a short period of time, multiple credit inquiries will combine to count as only one.
      Also, if you know your credit score in advance, you can simply just ask them not to pull and tell the lender the number. That should be more than enough for lenders to come up with a quote for you.
       
      Extra Tip 3: Pay attention to fees
      Some lenders do the trick to lower your interest by increasing some less obvious fees including closing costs, points, etc. So whenever you get a mortgage quote, always look at the full picture before making any decision.
    • By DavidMalan
      Hello my name is David Malan i need quick cash car title loan can anyone please suggest me the lender name and number so can i get the loan.
       
      Thanks
      David
    • By Bamaguy
      I have a friend willing to co-sign a loan for me.  I am looking at the $12-$15k range for the loan.  I don't want to do too many hard pulls, so I am going to try to get pre-approved.  So, my question is should I try to get pre-approved from my personal bank (Wells Fargo) or go with one of the specialty lenders like CarFinance.com or Auto Credit Express?  
    • By MarvBear
      https://www.autodealertodaymagazine.com/353798/black-book-warns-of-seasonal-depreciation-in-october-report?utm_source=email&utm_medium=enewsletter&utm_campaign=20181105-NL-ADT-Enews-BOBCD181030013&omdt=NL-ADT-Enews&omid=1000693576
       
      FYI..........  No paywall.
    • By MarvBear
      https://www.quora.com/When-you-buy-a-used-car-from-a-dealer-how-do-you-discover-the-lowest-price-the-dealer-will-take
       
      No paywall.   I thought this was interesting.



  • Member Statistics

    • Total Members
      179,596
    • Most Online
      2,046

    Newest Member
    Blacccoffy
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines