At the time of the post we are in the midst of a global pandemic known as Covid-19. With that being said, it has had a significant impact on the global economy. What does that mean for the car industry? Will there be killer deals available? Will I be able to buy a car at the fraction of the original price?
The pandemic has had an impact on the car industry already and the total impact has yet to be determined. There are deals available now, and they may or may not get better within the coming weeks. Will you be able do get a car at the fraction of the original price…probably not.
With auto manufacturers shutting down production over the last few weeks is preventing the market from having a huge surplus of new cars therefore limiting the extent of how deeply vehicles will be discounted.
However, there are some attractive offers from a few auto brands at the moment. One of the most popular seems to be the 0% for 84 months.
First of all, I wouldn’t advise anyone to drag an auto loan out for 7 years. 7 years! Also, if you have followed me for a little while you know that I am a proponent of purchasing preowned vehicles vs. new.
Is there a catch? Well here are some things to consider.
Most dealers only offer 0% financing or a rebate. Not both.
A small interest rate such as 1.9% with a rebate could actually be a better deal. The monthly payment may be slightly higher but the total amount paid over the term of the loan could be lower.
Check out the video below by David B sells Chevy on YouTube where he breaks down the math on an example.
When most people purchase a car, they are generally most concerned about the monthly payment and whether or not, they can manage it.
What should be considered most is the total amount of the loan including finance charges and interest over the total amount of the loan. Just becase the payment is lower doesn’t mean it less expensive.
Moral of the story, pay close attention to total amount being financed, interest rate, and monthly payment. That way you can determine the total amount you will have paid at the end of the loan period.(This will also be in your finance paperwork as well when you are signing the final documents.)