0% financing for 6 years

[Reynoma]

I just read in Automotive News that GM is going to start a sale on 2004 models on Monday (September 27th, 2004). Their offer: 0% financing for 6 years. I also heard that Ford is going to match this deal in order to get rid of the bloated 2004 inventories.

[ragingfish]

If they'd offer 0% for 6 years on a G6, I'd do it...I think I could love that car enough to hang on to her for 6 years...

[AKLGT]

Quote, originally posted by Salsa! »Why do you buy the car then, you should lease if you get rid of it so soonleases do not work for people who drive too many miles or put too much wear and tear on a vehicle. i learned this when i leased my tundra... will never to that again! unless i change jobs that do not require me to drive all over the place!

[Reynoma]

I must admit that my wife and I are very tempted to go out and look at a 2004 Montana or a 2004 Montery. I figure at 0% for 6 years, a $30,000 loan is about $416/month. Yes, alot of money, but for what would be our main auto, it might be worth it so we could get something nice.

[Cincyvibe]

I bought my 2004 in March and got 0 percent for six years.....it's a beautiful thing!

[cibomatto]

Quote, originally posted by silverawd26 »I for one would not want to pay for a car over 6 years. Usually after 3-4 years, I wear out my vehicles and it is time to get a new one.I echo what Silver says....Vehicles depreciate super fast so imagine being in the 4th or even 5 year of payment and the value of the car is still below the loan balence... I don't think its a wise move financially

[cibomatto]

OK here is an article to considerhttp://www.usatoday.com/money/...x.htmEven at 0%, 6-year car loan could be bad ideaBy James R. Healey, USA TODAYThe six-year, 0% loans that Ford Motor and General Motors are offering starting this weekend will put a lot of buyers into cars they didn't think they could afford — and keep them there longer than they expect. Ford Thunderbirds on a dealer's lot in Schaumburg, Ill. By Tim Boyle, Getty Images That's because most vehicles depreciate faster than long-term loans are paid off, even when buyers don't have to pay interest. And because the interest-free loans apply only to 2004 models, at a time when about half the vehicles in stock are 2005 models, buyers are starting the depreciation plunge with year-old cars or trucks.Typically, a six-year borrower would owe more than the vehicle's worth as a trade-in for about four years, making it tough to buy something new until then."It's a shock to the consumer: 'Wait, I've been making payments three years, and now you're telling me I still owe more than the vehicle's worth'?" says Raj Sundaram, president of Automotive Lease Guide, an authoritative arbiter of depreciation."You could be stuck in this car a long time. It's a decision you'll live with many years," says Charlie Vogelheim, executive editor of Kelley Blue Book, veteran tracker of used-car values. "Consider whether you're better off taking the rebate and getting your own loan," he adds. "Bring a calculator." Ford's 0%, 72-month loans can't be combined with other incentives. That could be a big sacrifice. Ford is giving $5,000 rebates on minivans, $4,500 on Explorer sport-utility vehicles, up to $3,500 on F-150 pickups. GM says long loans can be combined with certain incentives called "bonus cash," but not with other rebates. GM brands not eligible: Cadillac, Saab, Hummer. Buyers with marginal credit ratings won't qualify for the best rates.Buyers able to make big down payments or pay cash could benefit from the long loans. "One argument is: Take the money you'd have put down and invest it, and use their money interest-free," says Rob Gentile, director of auto price services for Consumer Reports magazine. Five-year certificates of deposit are paying about 4.5%. Even so, he says, most people shouldn't take the long loans: "You'll still be making payments after the warranty expires, so you could be facing both payments and repair bills."GM announced first, saying it would offer the 72-month, 0% loans for 72 hours, Tuesday through Thursday. Ford fired back with the same deal, but starting Sunday, hoping to siphon buyers waiting for GM's program to begin. GM hopes the deal puts a strong finish on September sales. Its share of U.S. new-vehicle sales has slipped to 27.5% this year, from 28% a year ago. Wall Street's auto-industry analysts have fretted about rising GM inventories of unsold leftovers, though GM says that's under control.

[Reynoma]

Quote, originally posted by cibomatto »The six-year, 0% loans that Ford Motor and General Motors are offering starting this weekend will put a lot of buyers into cars they didn't think they could afford and keep them there longer than they expect. Very true. You pay for a car for that long - especially after the 3 year warranty is gone - and then you are in a situation where you are making payments in the 6th year and have the potential to also be making major repairs.

[ShotInTheDark]

look at what they are doing with Boat loans. Most of them are either 7 10 or 15 year loans! Go try to find a lending institute to write you a boat loan for less then 7 years and see what the hassle is.

[AKLGT]

i told my folks about the 0% for 72 months. they were in the market for a used truck, but it worked out w/ scherry2 getting us a GM friends and Fam Certificate that a new truck was the same as a used one w/ all the incentives! i have had 2 vehicles on a 72 mos pmt plan and 2 at 60 mos. the key is to keep my pmts and interest as low as possible because i can always pay more than my normal payment. i can pay off the loan when i can. however if something happens, it's much easier to make that lower pmt then the higher one.

[Reynoma]

After reading an article in Automotive News, it seems like not too many people took advantage of this deal.Even at 0%, 6 years is an awful long time to pay for a car.