Your Opinion - Down Payment on New Vehicle?

It COULD have something to do with the car as each automakers have different rebates and incentives each month. Many of which include factory financing and next to 0 percent APR.

for instance... Jeep is currently running 0 percent financing for 72 or even up to 84 months for almost their entire lineup until March. (in which case put no money down) Might not be the case with other automakers, I would have to do more research on other brands to compare....

 

A bit of an “out of left field response” from your pal SuperCoop, but wanted to share an interesting video from a guy who bought a Tesla a few years back but regrets not taking the advice from somebody who told him he’d be better off putting down payment $$ in TSLA and pay for the car via stock gains.

https://insideevs.com/features/486301/video-tesla-model-3-best-worst-decision/

 

Car loans are simple interest loans so if you can qualify for low interest rates then do not put anything down, save your money for emergencies or better yet invest your money. Car loans are 2% and the market has returned on average 6-8%

 

I love leasing but it has to be done right and you have to understand that every car doesn't lease well.

Main reason you dont put money down on lease is you do not get any back if you were to total the vehicle. And every major manufacturer bank with exception of Toyota Financial INCLUDES GAP coverage on their lease, meaning you are not responsible for difference between insurance fair value and the payoff on your lease.

my favorite/best lease was a 2016 chevy malibu that I drove for 2 years at $144 per month, 0 down 1st payment only at signing. Different regional incentives some people in the US got the car for sub-$100. Nowadays Malibus dont lease for sub-$250 so if you are looking for a good deal you cannot be picky.

leasehackr.com is an excellent resource, and I highly suggest reading and learning as much as you can before negotiating a lease deal

 

My last car, had 0% financing (including extended warranty) so just trade in as down payment-wife's car a few years ago, very low rate (maybe 1%) so we put a down payment on the credit card (1% cash back).

 

I'm with you on that. We went wild with debt in the early years of our marriage! We would scoff at the idea of having a $500 payment on anything but had no issue with $600 in total payments on all kinds of stuff. Ahhh, the logic of the dumb newlyweds.

My wife got a car a few years ago with $8k down and financed $17k for 3 or 4 years. Paid it off in 10 months. I got a car 13 months ago with $5k down and $10k financed for 2 years that we paid off in 6 months. Like you, I don't want that long term obligation and I don't care how low the interest rate is. It's getting paid off ASAP.

We just don't like those kinds of obligations and that payment each month is just something else on a to-do list that's long enough as it is. The downside is that putting that big payment down and then paying off it off aggressively tightens up the cash flow. The upside is that it's temporary and the result is peace of mind.

 

I've had some of my friends who use that idea to kid me about paying things off as quickly as we can. They always get the longest term possible, then don't do anything with all that free/cheap money outside of throwing a few bucks in a chump-ish CD, as you mentioned, and making an extra $8 a year.

One of my in-laws is pretty sharp. He always claims the maximum number of dependents on his W4 and aggressively invests that money. Then he claims the proper amount of dependents when he files his taxes and pays the difference. He always comes out ahead, and by a respectable amount. Of course, he's as anal retentive as they come but knows how to make easy money.

 

How do you "work" a dealer in an all cash deal (actually, cut a check for full amount)? Once I get settled on what (Chrysler 300 looking good now) I'm tempted to buy online or a service like Carvana just to jack the dealers up.
Any tips? Thanks.

 

Consider residual value too - are you going to buy it after lease is up or keep the car for a long time? How many miles do you drive in a year? And know that auto sales people are out to get the best commission for themselves and have no interest in you and future.

Haggle. Everything is always up for consideration.

 

"Working the dealer" in the old context is an anachronism in the day of the internet. Use the various internet services, shop the dealerships (no need to go in), find what you want for what you want, go kick the tires in person/test drive, pay for the car.

 

I don’t know how each state prices cars but transparency here is much better.

0% financing doesn’t necessarily mean zero... with any make.
The cash purchase price will differ from the 0% financing price. A few thousand bucks+++You many want to look at a bank/credit union loan.

Trade-in vs cash deposit. What can you get for the vehicle selling it privately?
Trade-ins are usually in the dealers favour.

Purchasing tricks? There are plenty....

 

The salesdroid I've been talking to has said that the out-the-door price will be the same no matter if I pay cash, finance with them, or finance with the Credit Union.

 

The droid isn’t lying to you. They made you believe that you can’t negotiate a better price....