Yes. You will see a newspaper ad with a really low price and the fine print
always says "cash price". Mike maintains that I could have talked the
dealer into the same price and still gotten 0.0%, but that is not the case.
Besides, I have a particular dealership that I am loyal to (because their
service is second to none..."goodwilling" repairs out of warranty when it is
a known issue; always a free courtesy car, if needed). I am not going to be
running around haggling to see if I can save a couple bucks elsewhere. This
last "value van" I bought cheap they had to get from Ottawa, as they were
sold out (I live between Oshawa and Peterborough). I buy a new car almost
every year (hubby gets a new truck every five years) and we are both
employees, so we do not buy anything but GM.
And, no, I don't buy extended warranties or all the other crap!
I'll try once more than that's it. What GM was offering was a zero interest
loan OR a discount from the MSRP of a specific amount on various vehicles,
not a discount for cash. The discount offered is generally equal to the
interest that would be paid on the MAXIMUM financed amount, as a percentage
of the dealer net cost, that GM would finance. In the case of that vehicle
it could well be $6,000. Generally if one has a late model trade it is
better to take the discount off MSRP than the zero interest because it is
greater, because of a lower loan, than the amount one can save in interest
even at zero. If one is financing the maximum the resulting low difference
between the discounted MSRP can be financed elsewhere, even at a given rate,
that will result in lower monthly payment.
All of that is true but it has NOTHING to do with the price you will pay for
the vehicle. That interest rate and that discount are from GM and GMAC.
However the actual selling price is determined by the dealership. Let us
say the MSRP is $30,000, the dealers net cost is around 15% less. Most
dealers will gladly sell a car for $500 when no trade is involved. If the
dealer did not discount the vehicle, other than the GM rebate, you did not
save a dime by 'paying cash'. You could by that $30,000 vehicle from the
dealer for $26,000 and still get the $6,000 for GM, and finance the $20,000
loan elsewhere and save on the total drive home price. I bought a 2006
Lincoln for my wife for Christmas. The Manufactures finance arm offered a
rebate, if one financed through it. I bought the vehicle for $200 over
invoice, took a $5,000 loan and the rebate of $500 against the final selling
price which was now $300 below invoice. I will send a check for the
balance with my first payment do next week.
Hmm let's see. They offer it at one price with 0% financing, or at a
discounted price if you pay them the entire price all up front (either
by having a fat wallet or having some 3rd party loan you the money to
pay them with). I don't know how your brain operates, but paying them
the entire price up front is what is known to them as cash. Are you
implying that a "cash discount" is only for those who actually hand
over green bills? A check for the amount (from you OR your 3rd party
lender) is considered cash in this context, so in fact, it IS a
discount for cash. Or if you like, a penalty in price to gain the
financing through GMAC at 0%. Either way, it IS the same thing.
Except there is a discount for a cash payment That discount is lost if
financing through GMAC or other dealer select financie company.
That discount is actually the real interest and dealer finder fee.
So finance elsewhere and get the cash discount.
You'll usually be ahead. Interest rates are very low out there.
Zero interest is a shell game. It's just a numbers con.
Crunch the numbers and find out your own answer.
In my case, I used the UBS buying service for a prenegotiated price. I used
the Manufacuterer 3.9% finacing and wheeled and dealed on the trade for a
10y.o. Ford Taurus. The UBS price was as good as I could have gotten, since
it was better than the dealer and manufacturer incentives. I chose the 3.9%
over a $500 rebate because the interest rate at my Credit Union was 6.9%. I
CRUNCHED the numbers and made my decision. It would have been different if
I had paid cash like I had in the past.
My recollection is that he was comparing the Sienna to a Saturn Relay
(you know Saturn, GM's "Import Intender Contender").
Based on current carsdirect.com pricing:
2006 Saturn Relay 3 van $28,295 selling price. This is a mid-level
equipment package van with leather interior but.
From the same source, a 2006 Toyota Sienna XLE is quoted at $27,575.
The XLE is also a well equipped leather interior model.
Check the information out for yourself.
Maybe GM has simply priced the Saturn Relay version of their
not-a-minivan, minivan too high ?????
...a nd the Chevy was not any cheaper. The Sienna LE pkg3 was $ 26,500 with
more equipment than a Saturn at the same price. It was a "GM-S price, which
is typically below invoice. I got the Sienna for about $2,000 off of MSRP
and 3.9% financing.
I just read an article today on the new Chev Malibu Maxx SS.
A great new engine designed in Europe.
What did Gm do with their designers, lay them off after preventing them
from advancing GM's technology for so many years?
This was at the GM site:
Sounds like a great engine, although too big for the application, but
what's that a 4 sp auto. I can't believe GM is still installing 4 sp
transmissions in a car attempting to sell to this market segment. >:)
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