did a little comparsion rebate or 0%, whose the winner

[gilbo]

folks did a little comparsion looks like 0% is better option for the long haul rather the rebate



Cash-Back Offers
Vehicle Price: $ 48319
Down Payment: $
Trade-In Value: $
Sales Tax: 8.25 %
Rebate: $ 5000
Interest Rate: 6.9 %
Term (Months): 60
Monthly Payment: $ 934.47
Total Cost: $ 56068


Reduced-Rate Financing
Vehicle Price: $ 48319
Down Payment: $
Trade-In Value: $
Sales Tax: 8.25
Rebate: $
Interest Rate: 0 %
Term (Months): 60
Monthly Payment: $ 871.75
Total Cost: $ 52305

 

[gilbo]

only way to b worth takin the $5000 rebate is if u can get about 4% on a 60 month loan, which is not out there

just a little food for thought

 

[dmargaros]

Another Factor...

Your monthly payment appears incorrect on the 0% financing deal...though your total payments appears right.

Another issue that isn't taken into consideration in your model is that if you indeed have cash on the sidelines that could be invested in the bank or otherwise (rather than as a down payment on the car), you should take that interest/income the money is making into account in your calculation, and you will see that you will be WAY ahead by doing the 0% financing...assuming you can afford the hefty monthly payment, and assuming that GM will qualify you for that hefty payment and the special financing. Not everyone will qualify.

 

[gilbo]

Your monthly payment appears incorrect on the 0% financing deal...though your total payments appears right.

Another issue that isn't taken into consideration in your model is that if you indeed have cash on the sidelines that could be invested in the bank or otherwise (rather than as a down payment on the car), you should take that interest/income the money is making into account in your calculation, and you will see that you will be WAY ahead by doing the 0% financing...assuming you can afford the hefty monthly payment, and assuming that GM will qualify you for that hefty payment and the special financing. Not everyone will qualify.

u correct, had a typo in the monthly payment part

correct i didnt take in to account of TVM