Bought a Toyota today.

Page 4 of 4  
wrote:


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!
Jane
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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.
mike hunt
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On Tue, 10 Jan 2006 18:42:04 -0500, "Mike Hunter"

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.
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You don't keep a vehicle long enough. However I'm not in favor of them anyway, if the vehicle is well designed and built. I buy for the longer term and don't buy new designs for a few years.
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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.
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wrote:

Thank you. That is exactly what I was saying.

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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.
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Exactly!
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Glad to hear it. I guess there's no reason for you to hang around here anymore. Right....??
Dave
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Do you mean to say you believe him when he says he bought a Toyota for the same price as GMs 'X' plan? That should have been your first clue he was full of baloney. LOL
mike hunt

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Mike Hunter wrote:

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 ?????
John
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...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.

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You should have bought a car.
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I know, but we have kids and ... they are convenient. 10 years from now it will be all cars again.

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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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