0 interest 72 months? Southeast Toyota

I'm seeing a few Toyota dealerships doing the 0 interest for 72 months on the east coast of Florida. The west coast dealerships are only doing the 60 months. What gives?

 

More patience on the East coast?

 

It’s because most people who finance new vehicles base it off their payment and not if they can truly afford the vehicle. The longer the terms the lower the payment. Ie customer can only afford 500 a month not 600. So they finance him for the extra year and make more interest and customer is happy he got the payment he wanted. Some of the dealers in Texas are doing 84 months. But then again buying new and not paying cash imo is foolish.

 

Sales are hurting more on the East coast with the southern counties closed. Over here on west coast it almost looks just like any other day of the year.

 

The cost to “borrow the funds” is factored into the out the door price of the vehicle. There is no such thing as 0% interest to car buyers...

 

if you can get 0% interest there is nothing foolish about financing vs buying cash. if anything, buying cash in that case is foolish.

finance the vehicle and take that 40k in cash and put it in a few index funds. see how much it is worth 6 years later, chances are you will have made a lot of money on that 40k rather than losing several thousands of dollars by putting it all into a depreciating asset.

 

I would agree. But I m willing to bet that someone making a 600 car payment 0 interest , is not also gonna put 500 month or so into an index fund too for that same six years. When your not making car payments, CC payments you will always have more money in the long run.

 

Exactly. They will give you whatever you want for your trade, and whatever interest rate you want if they get the price from you that they want for the vehicle. We used to do it selling spas, it's called buying down the interest rate. They basically tell you that's what they are doing when they advertise 1500 cash back or 0 percent financing. If you get both then again you just paid more for the vehicle.

 

1) SE Toyota is shady

2) 0% as @Ronzio says, doesn't exist. You just pay more for the vehicle and thus they get all 'interest' up front. And you get to pay more taxes as a bonus!

 

I agree with everything but the last statement... if I have cash on hand, but can easily afford the monthly payment, I’m going to put that cash into investments that will (hopefully) make me money. stocks are bipolar right now (and on sale!) but my money works harder for me when I have it in my pocket if I’m paying zero interest on a vehicle.

Edit - as others have said, IF you negotiate the appropriate deal.

 

i agree except most likely it is 0% OR a good amount off sticker if cash. if one does not have the cash then hell yes but if paying cash gets you 3 or 4 K less then it is decision time.

 

Not to mention me nor anyone I know personally has the money to just go buy a new truck outright. How many people actually do that? I guess I'm just not that rich.

 

Only if you can't negotiate a good deal. Financing $35k at 4%/60 months is $3700 dollars in interest. As long as you finance less than $38.7 at 0% you still come out on top.

 

I agree with this. At 0%, you are better off having that cash in the bank. Especially during these times. Unless you are just rolling around in literally hundreds of thousands of dollars, take the 0% and run with it. That being said, I would lean strongly towards a 60 month term versus the 72. 72 is just too damn long.

 

Never buy new, I only buy used 2-4 yrs old 30-60 miles. Have always paid cash. But I also keep them min 10yrs. I’ve had 4 Toyota Trucks put no less than 300k miles on each.

 

While that can be true most of the time, 0% interest is kind of like playing with other peoples money, you can take that lump of cash and make money on it instead of watching it depreciate. Or its a long term rental...lol

 

I think you'd be surprised. Think about it like this, instead of spending money on a car payment you take that money and dump it into an account, every month contributing to it as if it were a car payment.

So hypothetical speaking a car payment was $700 a month though you paid cash for your car. For the next 5 years you put that $700 in savings you would have $42000 earning interest. You sell your current Tacoma for a reasonable sum of $15000 (idk what prices will be in 5 years) maybe less or more and you pay $50k for your brand new 2025 Tacoma so you use $15k on the sale of your truck then $35 k from your $42k pot and pay cash.

Then you do it all over again but it 5 years you hopefully make more money and should anticipate higher vehicle costs and thus pick a new "payment" amount for your savings.

 

Makes sense but I've never been in that situation

 

Wow. That's awesome. Good discipline too.

 

Ya it’s tough, takes discipline. Trick is to buy used like others have mentioned.