Should we expect major incentives b/c of Corona

[Notorious]

...If they bumped it to 84 months at 0%, gave me 90-120 days before the 1st payment, included all models and my dealer still let me get it 5-7% below invoice, well that would be great...

You could probably get that exact deal on another far, far less desirable vehicle currently being sold: Kia and Hyundai dealers usually advertise “specials” like that on some of their models. Maybe even some motorcycle dealers?

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[Yngwie]

0% is awesome and I can always pay it off sooner than the 84 months (something you should always do regardless).

Different people have different circumstances and you should "always" avoid using terms like "always." Just like you should never say never.

Joking aside, personally I think there are some people who should never pay off a loan with 0% interest.

It's called leverage. If someone is giving you free money via a loan, then find some place to invest it and avoid paying off the loan as long as possible. If you tolerate risk, put it in an index fund or whatever investment you like that will give you a good return over the long haul. If you are risk adverse, put it in a CD or high interest savings account (not that 1.5% is that high, but 1.5% is more that 0%).

I understand how people do not like debt. I am personally somewhere in the middle, where I overpay on my mortgage and car loan, but also put money in investments to take advantage of the leverage. If you hate debt, great! You will definitely be better off than people who take on debt and make minimum payments, but do not invest the difference. You may also sleep better given your risk tolerance and knowing you do not have debt.

 

[jakebrake]

If you're going to see them, it'll be at the end of the year.

 

[The Viking]

I agree. A cash buyer wants a cash rebate or incentive to knock down the selling price.

What would be a good cash rebate? A few grand? 5 grand? I'd rather have that 0% interest loan for 84 (!!!!) months and take that 50g or so I would pay cash and buy into a market that is very beat up and will probably be more beat up when reality strikes. In a few years that will be a far better spot to put your money than all cash on a depreciating asset that you could have gotten for a zero-interest loan on a really long payment plan.

 

[The Viking]

A 7 yr loan is not an incentive, just another dumb thing GM and Ford started and now FCA is following. Stopped by local store, freinds with owner and some techs. Sales are tanked, service very slow everyone is staying home and not getting cars repaired and very little sales traffic. dealers are upset that FCA is not putting cash on the hood, no one wants a 7 yrs loan but many coming in with cash and then walk out when they find out no rebates. The dealers and FCA need cash buyers to generate cash flow, and got news for you but these type of customers dont care about 7 yr loans and the folks who do 7 yr loans aint going to be buying cars.

a 7 year loan is absolutely an incentive for the reasons I outlined in my previous post. A cash buyer would be absolutely stupid to not take a 0% loan. As far as not generating cash flow, FCA is the bank issuing the loan, correct? That means they can borrow the money at the Fed's rate which is between 0-.25% right now. They are getting the money for free or for close to it so it does generate cash flow.

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