I think this is a deal...
- Thread starter Russ7
- Start date
Its a discount in TX because of the Dallas Auto Show.
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- 2017 CX-5 GT AWD
It also depends. Are you giving up 0% financing to get the $1000 discount? If so, what is your rate and how much is being financed?
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- 2017 CX-5 GT AWD
I would rather have the 0% as i can make more money investing my cash, but to each his own. But the bottom line is, if you think it is a good deal, then it is a good deal.
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- RDX Aspec Adv.
Damn. That might honestly get me to trade.
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- Denver, CO
FWD or AWD? Either way, looks like a nice deal to me (thumb)
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- Denver, CO
Huh? Sounds like he has an extra $1000 off the deal he can invest with too
Depending on how long the loan is for, 0% is not always the best way to go.
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- 2017 CX-5 GT AWD
Huh? Sounds like he has an extra $1000 off the deal he can invest with too
Depending on how long the loan is for, 0% is not always the best way to go.
0% is always the best way to go. There is no reason to ever pay 0% off early. At a 3% interest rate I would pay about $2000 to borrow $25,000. I can invest that $25,000 and conservatively average 4-5% over 5 years.
If i pay cash for my car, that $25,000 is not earning any interest. Yes I can replenish it over time, but all the time i am not earning interest. Mazda knows this. It is cheaper for them to offer the buyer $1000 then to offer 0%. They are paying for the use of that money too.
It is hard for most to have the financial discipline to do the 0%. They see the $1000 off and only look at the purchase price. I am by no means wealthy, but letting my money earn interest and using others for free, is very efficient way to see your money grow.
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- Denver, CO
Sounds like this assumes you don't actually need to finance, and have the full $25,000 to just invest with instead. (scratch)
Yep. Fwd.
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- State of Jefferson
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- 2017 CX-5 GT AWD+
That's the key.
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- 2017 CX-5 GT AWD
The OP said he could pay it off in a year. So that means even if he doesn't have the money now, he will in a year. Still, 0% is a better deal.
The $1000 discount is worth maybe 1.5%, So if you pay any more then 1.5% APR, you spend more on interest then that 1000 cash discount.
One thing many people don't realize is the money dealers make from deals with finance companies. They will knock lots of the price if you are financing through them and unknowingly take a higher rate. It doesn't take long for them to recoup a $1000 they knocked off. Many car loans now have origination fees - cash in the lender/dealers pocket - don't forget to add that back to the great price you thought you got.
That is why all these "did i get a good price" threads are almost meaningless. Without knowing the full terms of the deal, the buyer could easily be paying more then someone that got a higher price but paid cash.
$24,100 is an awesome deal for a 2018 ($4,200 off MSRP). I would jump on it ASAP!!
I just purchased a 2017 Touring AWD w/Preferred Package (Bose, power lift gate, etc)for $26,500 ($29,200 MSRP) but I went with the 0% for 60 months. I didn't want the 2018 due to the cylinder deactivation thing but that's just me.
I could have paid off the vehicle in full but I thought, why? Cash is king and I would rather have the cash to invest with rather than sink it all into a vehicle.
I just purchased a 2017 Touring AWD w/Preferred Package (Bose, power lift gate, etc)for $26,500 ($29,200 MSRP) but I went with the 0% for 60 months. I didn't want the 2018 due to the cylinder deactivation thing but that's just me.
I could have paid off the vehicle in full but I thought, why? Cash is king and I would rather have the cash to invest with rather than sink it all into a vehicle.
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- RDX Aspec Adv.
...and with GAP, if it gets totalled, who cares as long as you're okay? Paid cash? Well, sorry bro, you just lost $2-8K with many policies.
Something isn't adding up. Are you getting a dealer discount that gets you to invoice price plus another $1500 dealer discount? $2,244 total dealer discount and another $2,000 in rebates/incentives?
