If we only knew.
May 10, 2007 7:22 AM Subscribe
0% Ford Financing - will we see it again?
Timing is everything. They just ended it, didn't need a car then. We will soon.
Timing is everything. They just ended it, didn't need a car then. We will soon.
They did you a favor. You don't need a new Ford. Besides 0% has catches such as short terms to pay off the loans, availability only for in-stock, new vehicles, credit score limits etc. not to mention the massive depreciation of your shiny, new asset (especially if it's a Ford asset).
A dying car that costs you $100 a month to maintain is far cheaper than the payments on a $20,000 new car financed over 3 or 4 years. If you know already that you are going to need a car then you'd do better to save up for it and then go find an nice, reliable used model.
Also why not get something that's actually made in America of American parts, you know, like a Toyota or Nissan rather than some import like a Ford or Chevy?
posted by Pollomacho at 7:42 AM on May 10, 2007 [2 favorites]
A dying car that costs you $100 a month to maintain is far cheaper than the payments on a $20,000 new car financed over 3 or 4 years. If you know already that you are going to need a car then you'd do better to save up for it and then go find an nice, reliable used model.
Also why not get something that's actually made in America of American parts, you know, like a Toyota or Nissan rather than some import like a Ford or Chevy?
posted by Pollomacho at 7:42 AM on May 10, 2007 [2 favorites]
Considering the ailing businesses of the US-based car companies, you can bet that there will be more incentives to move inventory.
As Pollomacho says, often these interest rate tease rates have catches so buyer beware. I would rather pay 5% interest on a car I like than 0% on a car I have to settle for because Ford or GM wants to unload the inventory.
Buy your car toward the end of the month or the manufacturer's fiscal quarter when the dealers and the manufacturers are more likely to make a good deal. They'll discount the car and more than likely give you a discount on the financing.
posted by birdherder at 8:53 AM on May 10, 2007
As Pollomacho says, often these interest rate tease rates have catches so buyer beware. I would rather pay 5% interest on a car I like than 0% on a car I have to settle for because Ford or GM wants to unload the inventory.
Buy your car toward the end of the month or the manufacturer's fiscal quarter when the dealers and the manufacturers are more likely to make a good deal. They'll discount the car and more than likely give you a discount on the financing.
posted by birdherder at 8:53 AM on May 10, 2007
I know someone who has a hand in setting these things up. His thoughts:
My estimation is that 0% may pop its head up again in August or September for the 07MY closeout period. It is a horribly expensive incentive that can’t be used too often due to the cost and the lessening impact once consumers come to expect it
They don't plan the incentives programs more than a month in advance, so his educated guess is as good as it gets.
posted by dness2 at 9:23 AM on May 10, 2007
My estimation is that 0% may pop its head up again in August or September for the 07MY closeout period. It is a horribly expensive incentive that can’t be used too often due to the cost and the lessening impact once consumers come to expect it
They don't plan the incentives programs more than a month in advance, so his educated guess is as good as it gets.
posted by dness2 at 9:23 AM on May 10, 2007
To echo Pollomacho, you need really good credit to qualify for that 0% so it's not even a definite thing -- so stop kicking yourself for not jumping on it.
If you can wait awhile, a good time to buy is usually during the model year changeover which starts near the end of the summer. That's when dealers are usually trying to unload their 2007s as the 2008s come in.
Regardless of foreign or domestic manufacturer, you will likely see attractive incentives in the future, whether in the form of 0% financing or thousands of dollars in cash back offers.
posted by awegz at 9:29 AM on May 10, 2007
If you can wait awhile, a good time to buy is usually during the model year changeover which starts near the end of the summer. That's when dealers are usually trying to unload their 2007s as the 2008s come in.
Regardless of foreign or domestic manufacturer, you will likely see attractive incentives in the future, whether in the form of 0% financing or thousands of dollars in cash back offers.
posted by awegz at 9:29 AM on May 10, 2007
0% interest will undoubtedly return, but if you have even decent credit, a better deal on a new car could be to wait for a good rebate offer, then finance through a bank or credit union at a lowish rate of around 6%. On a fairly short-term loan like an auto loan, low interest and no interest don't differe by a whole lot, and getting a rebate is more of a sure thing whereas 0% interest rates are more of an all-or-nothing, non-tailorable proposition. If the terms fit what you want anyway, 0% is great, but as other said, they are often for short terms, require high credit scores, etc. If you look into your own financing through a separate institution, you can shop around and find the best deal for you, then go to a car dealer and have your pre-approval as a bargaining chip.
I did exactly that, and the dealer actually secured a rate lower than both their factory special and the pre-approved rate I secured online; their finance guy found the rate for me through a local credit union.
A lot of assumptions going on here about ok's car buying. The question is about interest rate offers and you guys are trying to talk him out of buying a new car, buying a Ford, etc. Statements like "Buying a used car is far, far wiser than ever buying a new one, regardless of what kind of car it is" are not only irrelevant to the question, but are matters of opinion and not facts. There are many reasons and scenarios that make buying a new car preferrable to buying a used one. Ok hasn't given us nearly enough information about his car buying decsion for us to make that call for him.
posted by Doohickie at 10:34 AM on May 10, 2007
I did exactly that, and the dealer actually secured a rate lower than both their factory special and the pre-approved rate I secured online; their finance guy found the rate for me through a local credit union.
A lot of assumptions going on here about ok's car buying. The question is about interest rate offers and you guys are trying to talk him out of buying a new car, buying a Ford, etc. Statements like "Buying a used car is far, far wiser than ever buying a new one, regardless of what kind of car it is" are not only irrelevant to the question, but are matters of opinion and not facts. There are many reasons and scenarios that make buying a new car preferrable to buying a used one. Ok hasn't given us nearly enough information about his car buying decsion for us to make that call for him.
posted by Doohickie at 10:34 AM on May 10, 2007
I'm not going to get into the new vs. used debate, because I think car buying in general is an incredibly personal decision, up there with boxers vs. briefs or Mac vs. PC -- there's no right answer there.
However, I don't think the lack of a 0% promotion is the show-stopper that you may be thinking it is. I recently (well, okay, a year ago) bought a new VW and was disappointed that because of the car (a late-model-year 2005) I couldn't qualify for 0% financing. However, when I sat down and ran the numbers, after chiseling them down a few thousand bucks, getting another few hundred in cashback promotions, and getting a low interest rate, I actually did better than I could have at 0% and no other promotions (and I'd never have been able to make the deal I did on an '06 model).
So anyway, the fact that there aren't any 'really good' promotions going on right now might look like it sucks for you on the surface, but it really sucks for the dealer, who probably isn't moving nearly as many cars. I'd go in there and start playing the game and see what you can do. You might do pretty well.
posted by Kadin2048 at 11:10 AM on May 10, 2007
However, I don't think the lack of a 0% promotion is the show-stopper that you may be thinking it is. I recently (well, okay, a year ago) bought a new VW and was disappointed that because of the car (a late-model-year 2005) I couldn't qualify for 0% financing. However, when I sat down and ran the numbers, after chiseling them down a few thousand bucks, getting another few hundred in cashback promotions, and getting a low interest rate, I actually did better than I could have at 0% and no other promotions (and I'd never have been able to make the deal I did on an '06 model).
So anyway, the fact that there aren't any 'really good' promotions going on right now might look like it sucks for you on the surface, but it really sucks for the dealer, who probably isn't moving nearly as many cars. I'd go in there and start playing the game and see what you can do. You might do pretty well.
posted by Kadin2048 at 11:10 AM on May 10, 2007
Echoing the sentiments above, a car dealer once told me "There are only three people who buy new cars. Company people, old people and stupid people. Company people buy them because someone else takes the hit. Old people buy them and keep them til one of them dies. Stupid people buy them because they like shiney."
posted by twine42 at 3:09 PM on May 10, 2007
posted by twine42 at 3:09 PM on May 10, 2007
This thread is closed to new comments.
I know that you said you'll need one 'soon', but I doubt that it's going to happen again quickly. They'll probably rotate through a few other 'deals' first: "Employee Pricing", etc, etc.
Keep an eye on The Truth About Cars, who has a good feel for the general pulse of Motor City.
posted by unixrat at 7:42 AM on May 10, 2007