Quote:
Originally Posted by Steve Carlton
It was an old school negotiating tactic to work a low price with financing included, then at the last minute say "I think I'll just pay cash." I don't think that tactic works anymore.
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The first two questions I was asked were cash or finance? and any trade? The financing was really what turned us more towards new. Subaru was running 3.9% for up to 72 months. I typically hate 72 months for a car loan but I asked if there was any penalty for early payoff which they said there wasn't. There was only a marginal rate reduction if we went 36 months or less. So I told my daughter to get the 72 month loan and pay like it's a 36 when she can afford to. Seeing as how she had saved a significant amount for down payment I knew she'd do just that. I was hesitant to let her put 15K down but figured with rates dropping in the not too distant future, she was gonna be hard pressed to earn 4% on anything with easy access to the money. If I thought she could have earned more with interest than she was paying, I would have suggested putting much less down.