Down Payment Assistance Program

[duquephart]

Anyone avail themselves of this incentive? I intended to pay cash but dealer says to finance through GM, get the spiff, and then pay off the note on the first payment. Sounds like a pretty slick way to get an extra $2,000 off.

[Andy Seibel]

if they are giving you a lower price for financing- go for it! pay it off the first month and take their rebate!

[diyer2]

Why turn down $2K?

[aaronarf]

Why pay cash? If you have that much cash most likely your credit score is good. You can make MUCH more return of investment on that money elsewhere. ( 401k etc)

 

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[KARNUT]

Right on, I've pretty much hover around the 820 mark and get very low interest or no interest with the discounts and rebates. How I do it, I always pay my bills early what little I have.

[tnchevy]

Why pay cash? If you have that much cash most likely your credit score is good. You can make MUCH more return of investment on that money elsewhere. ( 401k etc)

 

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You may or may not make more by borrowing for a vehicle and investing else where. With a good credit score you may get 2% or so on a new 60 month car loan but one thing to remember is that 2% is guaranteed for 60 months or whatever time frame. Investing the money has no guarantees on what it will bring over the next 60 months. It could average 10% or it could average negative 5%, you don't know for sure. One things is for sure is that 2% interest you are paying is not going to change so IMO you are better off saving up for you vehicle in an interest bearing account and then paying cash for it. That's how I've bought all my vehicles since I got out of college many moons ago and it seems to work just fine plus I own the vehicle. Stop paying your loan on your truck even it is the final payment and you will find out fast who really owns it.

[aaronarf]

You may or may not make more by borrowing for a vehicle and investing else where. With a good credit score you may get 2% or so on a new 60 month car loan but one thing to remember is that 2% is guaranteed for 60 months or whatever time frame. Investing the money has no guarantees on what it will bring over the next 60 months. It could average 10% or it could average negative 5%, you don't know for sure. One things is for sure is that 2% interest you are paying is not going to change so IMO you are better off saving up for you vehicle in an interest bearing account and then paying cash for it. That's how I've bought all my vehicles since I got out of college many moons ago and it seems to work just fine plus I own the vehicle. Stop paying your loan on your truck even it is the final payment and you will find out fast who really owns it.

Maybe I'm lucky, I've consistently rated at least 2% ROI for the past few years. 15.8% last CY.

 

1.49% interest on my truck.

 

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[KARNUT]

I use cash to buy rental property, 1/2 of the payment on one rental property pays my vehicle payment. Calculate interest on home loans, I'll pay cash for my rentals and pay 0 percent on my vehicles any day.

[diyer2]

IMO

Right.

Borrow, borrow, borrow. They way to financial security.

[JoJoSilverado]

Why pay cash? If you have that much cash most likely your credit score is good. You can make MUCH more return of investment on that money elsewhere. ( 401k etc)

 

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That's not entirely true. As a loan officer for a credit union, I can honestly tell you that it's usually the other way around. Most people that make boo-koo-bucks, are usually the ones with 500-600 credit scores. Not sure why, maybe they feel entitled and feel as though they aren't required to pay bills because they are of a "higher status"? We don't really know. But yeah. Usually when we have high-income people come in for loans, their credit is usually shot.

[BigBadSierra]

I just toss a down payment to cover the depreciation then put the them on 84 month 0% interest.

 

I can make way more money from 30K to 40K investing it.

 

You can put extra on the payments every month if you want.

 

Plus with the bigger down you can get rid of it whenever you want.

 

Of course you still loose the depreciation but that happens weather you pay cash or finance.

 

I also keep GAP insurance on it So if it gets totaled I will be in a new truck at no cost to me.

[duquephart]

Wasn't really looking for investment advice. Doing quite well on my own. Just wondering if anyone has done the deak outlined and if there were any pitfalls.

[aaronarf]

Wasn't really looking for investment advice. Doing quite well on my own. Just wondering if anyone has done the deak outlined and if there were any pitfalls.

Hard inquiry on your credit score.

 

 

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[Heavy 5.7]

Wasn't really looking for investment advice. Doing quite well on my own. Just wondering if anyone has done the deak outlined and if there were any pitfalls.

I don't see any pitfalls other than saving $2,000, go for it. Modern investments are a fools game, usually as risky as working for Enron or going to a casino. I paid cash for my "new to me" truck and have not regretted the decision at all, probably because there is a lot more cash left in the piggy bank. lolz...

[XSKIER]

Has any one taken the $2000 down payment assistance program yet? I am working a deal on a 16 2500HD reg cab. with lots of rebates, it may be a skinny deal for the dealer, I don't know. However, I think the F&I guy is trying to make a killing on me on the back end. The risk is 36yo married guy, 120k combined income, 799 score. The amount financed will be 31045, for 72mo The offer from GM financial was 5% interest! also The F&I guy offered bank financing written through him, no 2K rebate. Chase came back at 4.2%, Huntington at 4.3%. If any one has taken the $2k rebate, and then sought to pay it off early, Does GM financial try to get their money out of you in pre payment penalties and fees?