How do I determine which car financing offer is the best deal?

Question

I'm thinking of financing a new car. After trade-in and down payment I'd be financing about $25k. I'm not concerned about the size of my monthly payment, I'm just concerned about getting the best deal possible. I can finance that money over 36 months for 0%, over 60 months for 1.9% or over 72 months for $3.9%. Obviously the 0% is the best deal, but if I get a 5% return on my savings would I be better off going with either of the other two loans over time? Thanks.

mccoyblues · Accepted Answer

You need to be concerned about your monthly payment because over time that payment is what will determine if you saved any money or not.

You may be able to get 0% financing for 36 months but you may not get a better price on the car if you accept that loan offer.  A $2500 rebate is probably a better deal in the long run than low interest.  You just have to run the number to see which offer is the best.

Anonymous · Answer

Where can you get a 5% return on your savings ?

1 year CDs are running 2.25% & lower and 5 year CDs are 3.75% and less.

Plus, I would wager you could get a cash discount in lieu of the 0%.

pickmefirstplz · Answer

if you can 5% on your savings your best deal is 1.9%  where can you get 5%?

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How do I determine which car financing offer is the best deal?

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