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Old 12-10-2011, 12:28 PM   #1 (permalink)
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Default 0% financing a good deal???

Hello,

I just bought my outback last week and they and they just came out with 0% financing. So I just wanted to see if I had poor timing or not. I have great credit and short term financing is not an issue. But I noticed that you have to pay 27.77 per every 1k financed. That comes out to a higher finance rate if I had a 1.9% rate for 3 years and finances 24.5k (which is what I did) so am I missing something here or 0% is not really 0%...thanks!
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Old 12-10-2011, 01:51 PM   #2 (permalink)
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Sometimes, with lower finance rates offered by the dealer, there is less willingness to deal on the selling price. But that is just my personal long term experience.
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Old 12-10-2011, 03:21 PM   #3 (permalink)
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$27.77 x 24.5= $680.36 a month x 36 months = $24,493.14. That looks like 0% to me. (unless you call $6.86 interest)
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Old 12-10-2011, 03:29 PM   #4 (permalink)
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0% financing is good but it's usually short term 24or 36 months. Payments tend be high with a quick pay off.
0% promotions usually mean you give something else up in the negotiations. You may be paying MSRP to get 0% apr.
0% may also require substantial down payment.
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Old 12-16-2011, 12:46 PM   #5 (permalink)
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Yeah when I got my OB last March, the 1% deal was on 24 month financing (36 month on the Forrester for some reason). Most buyers are expecting 60 month terms, so can't afford the larger principle payments.
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Old 12-16-2011, 03:09 PM   #6 (permalink)
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In this case I'm inclined to believe the 0% is a good deal as it is not dealer specific and instead offered through SOA. As long as price is negotiated before financing is discussed you shouldn't be losing out on price.

Ordered a 2012 2.5i Limited 2 weeks ago. As long as it arrives while the 0% financing is still being offered through SOA I will be taking full advantage.
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Old 12-16-2011, 08:22 PM   #7 (permalink)
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...either way, 0% is a win - win situation...even they won't haggle that much. You still save a fortune in interest. You guys (south of the CA border) are lucky. I've never seen subaru have a true 0% interest offer here.
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Old 12-17-2011, 09:54 AM   #8 (permalink)
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I got the 0% 24 month financing on my OBXT in 2008. It was pretty simple; the total out the door cost divided by 24 = my monthly payments of $1294.64 (or almost exactly the lease amount for a Maseratti Quatroporte advertised in Autoweek magazine. )

We had already arrived at the price for the car, and I was intending to pay cash, so switching to the 0% was completely after the fact.

I figured that I saved a bunch, as I didn't have any downpayment, was paying no interest, and was making substantial dividends on the investment I was going to sell to pay cash for the car.

This was the only car in 40+ years of driving that I ever made full term car payments on. IF I take out a loan at all, I try to pay it off in the first year to 18 months.
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Old 12-20-2011, 12:02 PM   #9 (permalink)
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Thanks everyone! I appreciate your help!
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Old 12-31-2011, 03:21 AM   #10 (permalink)
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Quote:
Originally Posted by Subyforlife View Post
Hello,

I just bought my outback last week and they and they just came out with 0% financing. So I just wanted to see if I had poor timing or not. I have great credit and short term financing is not an issue. But I noticed that you have to pay 27.77 per every 1k financed. That comes out to a higher finance rate if I had a 1.9% rate for 3 years and finances 24.5k (which is what I did) so am I missing something here or 0% is not really 0%...thanks!

I was wondering about that to. I am in the process of buying a new Outback or possibly an Impreza. Been offered a 3.6R limited with moonroof for $33500 out the door with 0% for 36 months. Good to see the replies here to explain it
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