I'm pretty sure it doesn't. Your overall financial condition impacts the dollar amount, not the percentage that's appropriate.
Agreed. In my case, I paid cash for my 25 JLU as there was no 0% program. But when there is one and the variables align, I will take a 0% finance rate in a heartbeat. I'd rather risk some else's money than my own.
There is no such thing as "0% finance". Money costs money. Its all marketing terms where they move the money around. Often times, 0% means you have less to no room to negotiate sales price. Either they charge you more on the sale price to pay for the finance costs, or they give you some discount on the sale price and make up for it from the interest. They make similar margin, some dealers are willing to make less margin than others.
There are many numbers floating around, I have seen 10% but there really isnt a correct answer. Everyone has different financial goals, preferred lifestyles, obligations, and other factors. America culture and economy are based on instant gratification. Buy buy buy is what runs the economy.
I worked in banking, I've seen worse.
Correct. You used the term "worse", realizing that what you recommended was petty bad to begin with.
There's a massive amount of assumptions built into that sentence.
Circumstances absolutely matter - For example my daughter had enough cash in the bank to pay cash for a new Subaru. Instead she bought her car with 0.0% financing with $500 down (April 2020). By your logic she should have pulled the cash out of the bank that was paying her more than 0% so she could reduce her payment to some predefined percentage.
Not really, it all depends on who "they" is: dealer or manufacturer. Depending on inventory costs, either or both, may accept financing loss to move inventory. Only the dealer cares about dealer margin, the manufacturer doesn't.
