12/30/2023 0 Comments Car loan calc 84 mos![]() Frugal shoppers know that new cars depreciate as soon as they are driven off the lot, and in fact lose on average 15-25% of its value each year the first five years. Some Used Cars Are a Real Bargainīefore you take the plunge of buying a new car, consider a used one. Some "buy here, pay here" dealerships specifically focus on subprime borrowers. People with poor credit are a major source of profits because they can be charged far higher interest rates. ![]() Be aware though, that unless you have a good credit rating, you may not qualify for the 0% financing and this option may only be offered on selected models. If the rebate is $1,000 it would be to your advantage to take the 0% financing because the $1,000 rebate is less than the $2,645.48 you would save in interest. For instance, using our loan calculator, if you buy a $20,000 vehicle at 5% APR for 60 months the monthly payment would be $377.42 and you would pay $2,645.48 in interest. If the interest is more than the rebate, then take the 0% financing. How do you know which is better? Figure out the interest you would pay for the life of the loan if you financed with your bank. Many times dealerships will offer a choice of 0% financing or a factory rebate.
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