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Truth about 0%apr

Discussion in 'Commercial Snow Removal' started by pats plowing, Jan 30, 2003.

  1. pats plowing

    pats plowing Senior Member
    Messages: 281

    Well with all the advertisements on tv radio etc i did some research on the 0% Apr. I had seen an article on how many people are paying more for cars now than before so i was intrigued.
    This is for a ford truck based off fordvehicles.com as of this week.
    For each $1000 borrowed the charge is $27.78 per month. Say i go to get the 03 f350 supercab shortbed PSD with a sticker of $41k invoice of $35-36k. I put $16000 down with my truck trade of $6500 and $10k cash. I finance the remaining $20k for the three years at "0%". Total cost for finance charges is $20,017. Added to the 20k i borrowed and i will pay $56k+ a 35k truck that was overpriced to begin with.
    If im wrong id love to hear about it maybe i can afford something new.
  2. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Can you explain what are "finance charges" for 0% financing?
  3. pats plowing

    pats plowing Senior Member
    Messages: 281

    QUALIFY. 36 month Ford Credit APR financing at $27.78 per month; 48 month Ford Credit APR financing at $22.53 per month; 60 month Ford Credit APR financing at $18.83 per month ; 72 month Ford Credit APR financing at $16.53 per month per $1000 financed with 10% down OR $1500 cash back with standard APR rates. Take new retail delivery from dealer stock by 3/3/2003. See dealer for residency requirements and complete details.
  4. Got Snow

    Got Snow Senior Member
    Messages: 104

    those examples do not reflect 0% financing. monthly charges would be $0.00 per thousand borrowed.
  5. oakhill2000

    oakhill2000 Member
    Messages: 98

    yes eplain that to me too, I just bought a 2002 chevy, 34,000 I knocked them down to 33,000 plus my trade in of 6500. which is 26,500.00 I put 500 down and with the tax tag and title it was just over 26,000. I financed for 0% which would elimenate the "finance charge", My other choice was to go with 2000 cash back but after financing with a rate of like 7 and a half precent the finance charges would have been 5000 more than the 26000 with 0%. So I did the 0% and I am only paying 26,000 and change, so I am saving money, just a little higher monthly payment, But all in all I am only paying what the final price was.
  6. jsaunders

    jsaunders Senior Member
    Messages: 103

    The charge per $1,000 it to tell what the payment will be.
    $27.78 x 20 ( 20,000 / 1,000) = 555 per month
    $555 x 36 months = 20,000
  7. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    I came up with the same as jsaunders. You're paying only $20,000. Which is what was unpaid in the first place. It doesn't look like you're paying any interest.

    The 36 month deal is true "no interest" however the payment is higher. The other deals of 48, 60 and 72 months have interest charges. I just figured it up and with 72 months there is approx $3800 interest. They're hoping to hook you with the zero rate, then switch to a longer term to lower the payments.
    Last edited: Jan 30, 2003
  8. BWhite

    BWhite Senior Member
    Messages: 496


    Zero % means no interest charge.... just paying off the principal at the whatever rate( pace) they are requiring ..... Did you go to duddie?>
  9. Snoworks

    Snoworks Senior Member
    Messages: 466

    My dad is a car salesman. The way they make their money on the no intrest loan is rather simple. Instead of having a $2000 to $4000 window to play with on the sticker, they will only go to about $1000 below sticker for 0% finacing deals. That is if you can qualify! It gets worse if you are trading in a car/truck as well!
    Then they will always shave $1,000 off of there already bogus blue book listing.

    Chuck B.
  10. pats plowing

    pats plowing Senior Member
    Messages: 281

    Well sorry guys i was wrong.

    But I went to two different dealers and both said this was not interest but the charge to use Ford Financing of 0% i didnt get it, i think they tried to scare me into the higher interest rate. Well forget it 0% here i come.
  11. mike9497

    mike9497 Senior Member
    Messages: 466

    let me tell you something.you would be a very lucky person if you got a new ford truck with 0% i have great credit and the best ford would do was 7.9% chevy was 5.9% talk about FXXXXXX ME IN THE AXX!!!!

    also the truck i was trading in was in great shape with 43,000 on it i paid 19,500 two years ago and ford would only give me 5600.
    they gave me a story saying it needed tires,seat was ripped,shocks had broken seals,trans slips and the engine was misfiring.they also said this truck was plowed with they can tell.i bought the truck new and i never had a plow on it.
    Last edited: Jan 30, 2003
  12. Snoworks

    Snoworks Senior Member
    Messages: 466

    Like I said "If you qualify"

    Chuck B.
  13. ebaron

    ebaron Senior Member
    Messages: 110

    0 % financing is good if you are financing a lot. Pay it off in less years and you may be better off taking the the upfront cash. $2,000 today is worth more than $2,000 in three years. I shoot for a three year payoff, then the interest is less and therefore you may be better off taking the cash upfront and lowering your principal. If your credit rating is high, 5% financing should be no problem today.

    True, the dealer will look to jack you down on the trade. Push back hard, they still NEED to sell these things. People are not buying still. I pushed my trade up several thousand. The tricks go like this. Using KBB over NADA or vice versa, leaving off your options, playing with rating of the vehicle. Do your homework upfront and bring the value off the internet in. This way they have to work down from the NADA value, vs. up from their lowball bid. In my area NADA trades are higher than KBB, so naturally the dealers don't like NADA. I always ask them, so why don't you trust the National Automobile Dealer's Association???

    By the way, at least for GMs, there are many more 3/4 tons sitting on lots than there were years ago. Back then I had to beg them to take my supplier discount and sell one to me, this year they begged me to buy and went all over to find the one I wanted.

    One last gripe. Ask for the price of the truck, not the monthly cost. Funny how they quote a new $36,000 truck by hundreds per month, but quote your trade in 1000,s in cash. Sounds good for next month, but you take a beating in depreciation a few years down the road when it's time to trade.

    Sorry that was winded, hope it helps:waving:
  14. edrenckh

    edrenckh Member
    Messages: 61

    Bought mine through Ken Ray at Inver Grove Ford, MN. '03 F350, PSD. Invoice price, 0%, 3yrs. They even rolled the plow ($5K) into the total with 0%.

    I have heard that only 25% of people qualify for 0%.
  15. Pelican

    Pelican 2000 Club Member
    Messages: 2,075

    I bought my 550 at invoice, but had to take the 4.9% deal. Still not bad.
  16. Got Grass?

    Got Grass? Senior Member
    Messages: 641

    In oct 01 I got 0% put down 8k, had little credit at the time & was approved.

    This fall my father bought his truck with 0% put down 5k.

    No extra charges at all... 0% means 0% at the Chever dealer I go through.
  17. Earthscapes

    Earthscapes Senior Member
    from WNY
    Messages: 577

    If you have a 750 credit rating you qualify for 0%.
    I took the $2002 cash back, with the GM discount and saved $9,000 off the sticker. Then i went to the local credit union and got a loan at 2.9% for 5 yrs. i can payoff early and save on the interest, i have been making double payments. Not many banks let you pay off early.
  18. SnowGodFather

    SnowGodFather Member
    Messages: 330

    Where did some of you get your info from?

    0% means just that 0%

    The ford dealer does not finace the trucks, FORD offers that through Ford finacial. That's a factory incentive.

    Ford dealers don't give a rats behind if you take the $2000 cash back or 0% anymore, they don't get the spiffs like they used to.

    Info from best bud is a sales manager at a Chevy dealer now, was at a Dodge dealer, and I have customers who own dealerships of every make.

    The market is real tight, they have to sell them or no one but the employees' who builds them make any money.

    My dad bought a truck at 0% and he is paying $3000 a month for a year as a payment cause he wanted to do it that way. Truck was $36,k even almost. No money down.
  19. bgrover

    bgrover Member
    Messages: 49

    Depending on the vehicle you can even get the 0% for more than 3 years. In September I purchased a 2002 Explorer XLT and took the 0% for 5 years. Probably doesn't hold true for the bigger pickup's but what the hay. I figured if they wanted to let me have the money at no charge for the additional year I'd take it!
  20. wyldman

    wyldman Member
    Messages: 3,265

    I was just out truck shopping,and you could only get 0% financing if you qualify,and pay full MSRP for the vehicle.If not they had a cash price,which was way less than full MSRP.Also,if you were going fleet,or using any incentives,then 0% financing also did not apply.This was at two different GM,and one Dodge dealer.

    Seems as if there are a lot of little catches to this deal,and people seem to have varying experiences in getting the 0%.