Bought a Toyota today.

If that "5" indicates less than USA content, that doesn't mean the parts are from Japan. Remember that the USA is in NAFTA with Canada and Mexico. Parts and cars flow freely between these three countries.

So even with a "5" most parts could be from within NAFTA. Chrysler has been doing a significant part of their 2.7L V6 in Mexico, from day one for that engine back in about 1998.

GMAC is keeping GM in business today. It's the part of GM making the money, to cover the losses on car production.

I'm aware of that. As I said, the cash price is only cheaper than 0.0% financing for certain models at certain times.

Jane

Actually Honda is very smart. The auto ferries from Japan bring Acura's and they return with Honda's built here. Most of the other Japan mfrs send the ships back empty. You still gotta pay for the crew and fuel....

Not so, I'll try just once more to help you to understand. If the parts were north American (NAFTA) parts and the content was more than 70% the vehicle would be a '1' if between 40% and 70% it would have a '4.' Current Camrys and Tundras have a '5' because the content is less than 40% north American parts. The fact is even the Toyotas assembled in Japan, with a 'J' have a majority of parts from other lower wage countries.

mike hunt

Methinks you are confusing the 'selling price' with the TOTAL COST and the method of payment. The selling price is only a part of the total cost of a vehicle. There has not been a 'discount for cash,' since the thirties when dealers accepted time payments to sell cars. The total 'drive home' price of any vehicle depends on the selling price, which includes any rebates and or discounts off MSRP, the value amount of the trade if any, as well as the profit on dealer installed options, 'fees' a dealer charges, the actual government taxes and fees, and the cost of financing the necessary funds to complete the purchase. The price at which a dealer is willing to sell you the vehicles over and above his NET invoice price has no effect on how you pay for that vehicle. You can get the money from a relative, write a check or finance the amount due from any source you choose. The dealership earns extra profit if you finance through GMAC, a bank or a finance company. At a given interest rate the dealer will receive a percentage of the interest, generally around 1%. At zero interest GM still offers the dealer a finder fee of a few hundred dollars. There is no way you can finance THE SAME AMOUNT OF MONEY for less anywhere else, when compared to zero interest.

mike hunt

"Jane" wrote in message news:UPPvf.42026$ snipped-for-privacy@news20.bellglobal.com...

I did not say it was the same amount of money; better brush up on your reading comprehension!

I am telling you, sir, that the amount to be financed was $6300 Cdn less paying "Cash" than financed through GMAC at 0.0%. It was, indeed, an incentive for paying cash. Maybe this does not happen in the US, but it does here. In fact, that particular salesman said he sold all his Caveliers using the "cash" price, as it saved the customer $$. Of course, most dealers don't clue people in on this and it does not work for all models, as I said. Thus, the total cost of a 48 month loan was less when financed through the bank. Believe me or don't, I really don't give a shit.

Jane

What I was trying to enlighten you to, was you the fact that you could have purchased the vehicle at that same price, no mater what the salesman told you. How you pay the selling price is not a factor in the selling price only in the total purchase price. Did you get the paint sealant, fabric guard and mud guards, as well? When I was still in retail we loved buyers like you. LOL

mike hunt

Never

When I was still in retail we loved buyers

At least I know enough not to top-post.

First you said USA parts, now you say NA (NAFTA) parts. Correction; NAFTA is USA, Canada, and also Mexico. Geography! Lets get it right the first time.

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.

You're right Jane. It's also that way in my part of CDA and I'm sure in the USA as well. I see the USA ads on TV.

Nope, there is usually other cargo to go the other way. USA subsided rice?

Another rip off. Mike I knew you were a GM insider!

Thank you. That is exactly what I was saying.

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

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