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0% Financing or Cash Back

6K views 32 replies 16 participants last post by  bumoftheday 
#1 ·
Can someone explain to me what the deal is here. If you don't qualify for 0% financing, does that mean you aren't elgible for the cash? And if you're elgible for the cash, do you use it for your down payment or is it used for a credit on the selling price of the car?
 
#3 ·
Let's say they give you $3000 cash back or 0% financing.

Total Price + financing - Cashback = Price you have to pay
Total Price + 0.0% financing ($0) = Price you have to pay

0% APR and cashback is literally the same thing. You'll still have same amount to pay.
 
#4 ·
Haris said:
Let's say they give you $3000 cash back or 0% financing.

Total Price + financing - Cashback = Price you have to pay
Total Price + 0.0% financing ($0) = Price you have to pay

0% APR and cashback is literally the same thing. You'll still have same amount to pay.
Dealers usually have some kind of little "trick" going on.

The good thing is that you get to save money, though. I guess its just whether you take the 3000 dollars "now" or spread it out among the financing terms.
 
#6 ·
Haris said:
Let's say they give you $3000 cash back or 0% financing.

Total Price + financing - Cashback = Price you have to pay
Total Price + 0.0% financing ($0) = Price you have to pay

0% APR and cashback is literally the same thing. You'll still have same amount to pay.
It depends on how much cash you have to put down and what rate you get on your loan. If you have a lot of money to put down, you're better off with the cash, since interest won't affect you much. If you have good credit and little to put down, take the 0%.

Example - $18,000 car, ~$300 monthly payment:

$5000 down + 6% interest over 4 years - $2500 = $17155 pd @ $305/mo
$5000 down + 0% over 4 years = $18,000 pd @ $271/mo

$1000 down + 6% interest over 5 years - $2500 = $18218 @ $329/mo
$1000 down + 0% over 5 years = $18,000 @ $283/mo

So the 0% deal beats $2500 cash unless you have your own cash to play with. With more down you can either pay off the car faster or lower your monthly payment while saving money overall.
 
#16 ·
dinu01 said:
In Canada you get what they advertise - I doubt I can knock off more than 0.25% off the posted rate. We have higher interest and taxes than in the US.
Yeah... those taxes are killer. In BC, it's 14.5% of a new car. THAT'S INSANE!! Plus interest on financing... we BC-ers pay taxes out of our ears... and our silly premier is cutting programs at teh same time!!! ARGH!!! (Sorry, had to rant).

MZ6zoomzoom said:
Well, I didn't go through Mazda financing. I went to the dealer and said "I'll finance with you if you can beat my credit union" and the dealer went and found 3.74 at Chase Manhattan Bank.
My Mazda dealer guy said he might be able to MATCH other interest rates... not sure what he meant by that, but probably means I could get him to lower it some.
 
#19 ·
dinu01 said:
15% in Ontario and Quebec too. We paid $3000 in taxes for our PRO and $1300 in interest for 48mths at 2.9%. This is money wasted. Our payments could be $80+ cheaper per mth if it weren't for these ridiculous taxes.
I don't mind taxes if the money comes out in social programs and a good healthcare system.
But when the BC govt is shutting down schools and hospitals, that's taking it TOO far.
 
#23 ·
Well you might see some good numbers sooner than you think. Here is the US, I believe that it was early this summer that there was 0% APR for 36 mo. on a 6, then at the end of the summer, it was 48 mo., now it's 60 mo. Also, I have seen some Mazda6's now for $13,977 (manual i).
 
#24 ·
dinu01 said:
I agree w/you, but I wish they were lower. As you said our schools have little resources to work with - I know this b/c I'm doing my practicum now (aka: internship) to become a teacher.

As for 6% in the States, yeah you guys don't need to complain.

im in the works of being a teacher also...but im only just int he first semester of my 2nd year of college hehee...have a lil way to go haha =)

we'll be the coolest teachers with the coolest rides 8) :p
 
#25 ·
I'm in my last year (5th). I'm finishing my BA and doing my last year of Education. I went into a 3yr Ed program - so I did my BA and my B Ed at the same time. It's pretty good and the pay and opportunities in Toronto for it are good (especially when you're teaching French since no one speaks it). Oh yeah, did I mention 2mths and 3wks off every year with pay? HA HA

Coolest teachers? Very likely! Collest rides? Oh yeah!
 
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