Car manufacturers are constantly offering low-interest loans and other incentives to help sell cars.
With “normal” interest rates around 3.0% at the time of this writing, it’s not much of a stretch for car companies to offer 1.9%, 0.9%, or even 0% loan rates.
A zero-percent (0%) loan means no interest at all — no finance charges for the life of the loan. Some car company deals limit no-interest loans to 36 months but some extend it all the way to 60 or even 72 months.
Understand that no-interest loans are not something you can get by negotiating with a dealer. These promotional loan deals are only offered by car manufacturers on selected models and styles for a limited amount of time.
How much money do you save with a 0% loan?
Continue reading 0% Car Loans – Zero Interest
When buying a car, everyone knows you don’t pay the asking price or sticker price. Right?
The process of buying a car in the United States is unusual in that it’s one of the very few times when we actually negotiate or “haggle” over prices. We don’t do it when buying a refrigerator at Sears, or a TV at BestBuy, or a watermelon at the supermarket. With cars, it’s more like haggling over an old lamp at a garage sale or, if we lived in the Middle East, getting a price on a donkey.
Although buyer-seller negotiating is common in many other countries, most people in the U.S. find it uncomfortable and awkward. Since we don’t do it very often, we’re not very skilled at it. Many people hate it.
Negotiating New-Car Prices
All new cars have standard manufacturer-suggested-retail-prices (MSRP) — retail prices — “sticker” prices that are exactly the same for the same car, same model, same equipment everywhere in the U.S.. Including the word “suggested” suggests that the prices are not necessarily the prices we have to pay. And dealers encourage us to expect less-than-sticker prices by their ads and TV commercials — “We beat anyone’s prices,” or “Less than invoice prices,” or “Lowest prices in town.”
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Everyone buying a new car wants to get a bargain and a great deal. So where can those deals be found?
Although we’ll be primarily discussing brand new cars here, we can make some comments on used cars, if that’s the direction you think you want to go.
Used Car Deals
Finding a great deal on a used car is a bit more tricky than finding a new-car deal. That’s because used cars are, well, used. No two are alike. Even used cars of the same year, same brand, same model, and same equipment can have different mileage, different problems, may have been driven and maintained differently, may have been wrecked (or not), and may have very different prices for these and other assorted reasons. When you find a used car at a bargain price, it might be for a good reason — or the buyer may simply be desperate — or it could be a common scam, especially if bought online. Therefore, it takes much more care when buying used.
Continue reading Where Are the Best Car Deals?