0% For 60 1.9% For 72

bubba33 · February 5, 2009

0% for 60 months and 1.9% for 72 months ends march 2. I just got a email about this from the dealer.

Draenor · February 5, 2009

72 months, sheesh. Thats along time to make payments on somthing that aint worth paying on.

gave20 · February 5, 2009

pay cash

Z71Adrenaline · February 5, 2009

72 months, sheesh. Thats along time to make payments on somthing that aint worth paying on.

My old roommate financed his 2007 Ford Explorer Sport Trac for 84 months. Talk about being upside down on a piece of junk!

BuckFeverZ · February 5, 2009

36 months is long enough for me!

Corbin Dallas · February 5, 2009

Sounds sweet! As soon as I get mine paid off, I'm there!

robertbick · February 5, 2009

pay cash

Pay cash over 0%??? No way. I would invest the cash (can easily get 5% with 0% risk) and take the free loan. You come out ahead!

Neutron · February 5, 2009

I took mine for 72 months at 1.9 back in December 2007. Starting later this year once we get some more stuff paid off I'm going to start paying $200-300 more a month on my truck just to pay it off quicker.

lobster_7 · February 5, 2009

The arguement to pay cash over free financing is that the cash discount is ontop of the financed price, if it is financed at the same price(no cash discoutn) financing all the way. My truck in the summer was a 5000 cash discount ontop of other incentives (canadian dollar adjustment scam). I cando alot of financing on a line of credit at 3% for 5000. Something to consider.

Bowtie2Sierra · February 5, 2009

pay cash

Pay cash over 0%??? No way. I would invest the cash (can easily get 5% with 0% risk) and take the free loan. You come out ahead!

Maybe..maybe not.

Depends on if you can get the $4,000 cash back WITH the 0% financing from your dealer or not. According to their website, it is the 0% OR cash back. You also need to consider if you will keep the truck for the full 60 months or sell before at some point before then.

1. Purchase a truck for $30,000 and finance the full $30,000 at 0%, give up the $4,000 cash back (on ext cab) and keep the truck for 5 years. If you invest $30,000 cash returning the 5% mentioned above compounded annually, you will have $38,288 at the end of 60 months - $4,000 rebate you gave up = $4,288 (money ahead).

2. Same scenario as above but if you only keep that truck for 2 years. Investing the same $30,000 for 2 years compounding annually and you will have $33,075 - $4,000 cash back you gave up and you actually lost $925 by financing at 0% vs taking the $4,000 rebate and paying cash.

With the numbers above, you would need to keep that truck for a little over 2.5 years to break even. Keeping it longer and you are making money on your $30,000 "investment" and losing money if you sell it before 2.5 years.

Just food for thought.

jrrod2004 · February 5, 2009

pay cash

Pay cash over 0%??? No way. I would invest the cash (can easily get 5% with 0% risk) and take the free loan. You come out ahead!

Maybe..maybe not.

Depends on if you can get the $4,000 cash back WITH the 0% financing from your dealer or not. According to their website, it is the 0% OR cash back. You also need to consider if you will keep the truck for the full 60 months or sell before at some point before then.

1. Purchase a truck for $30,000 and finance the full $30,000 at 0%, give up the $4,000 cash back (on ext cab) and keep the truck for 5 years. If you invest $30,000 cash returning the 5% mentioned above compounded annually, you will have $38,288 at the end of 60 months - $4,000 rebate you gave up = $4,288 (money ahead).

2. Same scenario as above but if you only keep that truck for 2 years. Investing the same $30,000 for 2 years compounding annually and you will have $33,075 - $4,000 cash back you gave up and you actually lost $925 by financing at 0% vs taking the $4,000 rebate and paying cash.

With the numbers above, you would need to keep that truck for a little over 2.5 years to break even. Keeping it longer and you are making money on your $30,000 "investment" and losing money if you sell it before 2.5 years.

Just food for thought.

Perhaps you could do my taxes this year

Bowtie2Sierra · February 5, 2009

Perhaps you could do my taxes this year

I love financial analysis and investing is a hobby...I need something better to do with my spare time.

robertbick · February 5, 2009

You're correct. I was not taking into account the cash back OR 0%.

gave20 · February 5, 2009

pay cash

Pay cash over 0%??? No way. I would invest the cash (can easily get 5% with 0% risk) and take the free loan. You come out ahead!

It's not 0%, it's $16.67/month for every $1000 borrow. So if you borrow $25K it's 25x$16.67x12 months x 5 years. That's $25,000 in finance charges. And please show me where you can get 5% return on 100% securities.