What's the truth about this new 0% financing deal ?

"0% financing for 60 months at $16.67 per month per $1000 financed with 10% down."

Does that mean they still hit you with $16.67 per month even though there is 0% interest? If so, that's extremely misleading and is NOT true 0% financing....

Lets say you just put 10% down on a 30K vechile. You're borrowing $27K if you put 10% down. According to the above statement, you'd still be paying $450/month on top of the loan????

That just can't be right. What am I missing?

Reply to
Richard
Loading thread data ...

Reply to
Sy Cohen

I am not sure what you are thinking but here is the math:

30,000 sales price 3,000 down payment (10%) 27,000 finance amount

The ad says $16.67 per month PER $1000. So, there are 27 "$1000 increments" in $27,000 and 27 x 16.67 = 450.09 per month.

0% interest means NO interest. The 16.67 is a 60 month note. Take $1000 and divide by 60 payments and you get 16.67.

Got It???

-Steve

Reply to
S

Also back in 9/02 I did the 5yr 0%. Dealer also told me Ford would go about

120% of w>
Reply to
wth

Incorrect. FMCC (Ford Motor Credit Company) will NEVER finance extra just to be paid in cash to the borrower. You can however, put less money down. What you are talking about would be trading in a car with an inflated (or fictitious) payoff and the dealer pays you money after the close. That violates FMCC policy and the agreement the dealer has with FMCC and thus would be fraud. You know what they do to perpetrators of loan fraud in this country? ...I shudder.

-Steve

Reply to
S

Like I said, dealer sent me a check ($12,000.00) made out to me only to pay off the trade in loan (home equity) 3 days after I bought the '02. Paid invoice+tax and lic and an extended warranty. Financed just under $34,000.00 at 0% for 5 years. wth

Reply to
wth

Make them V.P. of Finance? ;-)

Reply to
Herb Kauhry

MotorsForum website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.