Steven asks…
0% APR or cash back in car purchase?
Which is better in buying a car, 0% APR or cash back?
Example:
Ford F-150 Supercab & Supercrew
0% APR Ford Credit Financing for 60 months – OR up to $4,500 cash back
$2,500 Customer Cash (PGM #11814) + $1,000 Promotional Bonus Cash (PGM #11818) + $1,000 Ford Credit Bonus Cash (PGM #11816). Ford Credit Bonus Cash requires Ford Credit financing. Not all buyers will qualify for Ford Credit financing. 0% APR financing for 60 months at $16.67 per month per $1,000 financed regardless of down payment (PGM #20250). Excludes F-150 Raptor. Residency restrictions apply. Take new retail delivery from dealer stock by 9/7/2010. See dealer for qualifications and complete details.
CSC101 Customer Service answers:
Take the cash back.
For one thing you might not keep the truck 5 years.
When you calculate a car loan of 20000 for 5 years at 5 percent the payment comes to about $377 per month.
With your example at zero percent it is around $323 per month.
This means the zero percent saves you fifty bucks a month or $600 per year. In five years this would be $3000.
This is $1500 less than the cash back.
Read the fine print to make sure you will really get all the cash back and also whether you qualify for the zero percent loan.
Joseph asks…
Can you return a car to a dealer if you paid cash?
I bought a 2000 Ford Explorer in cash at a Dealer called “Low Book Sales” In Utah. I paid 1500 for it, I just found out it needs a new head gasket. (1800 worth of work) I no longer want the car as it is already having issues. Can I take this Car back to the Dealer Ship and get my money back? I bought it 2 days ago.
CSC101 Customer Service answers:
There is no provision for buyers remorse in any state. That is a myth. Unless the dealer has their own contract allowing for a rescission period (like Carmax), you are an owner. And yes, it sucks. Take this as a lesson to buy from reputable dealers and have the vehicle checked by a mechanic before you purchase. $75 spent on an inspection at your local shop would have saved you a ton of headache. Give the dealer a chance to work with you and put you in a different vehicle — Believe it or not, most car dealers want to maintain a good reputation and will do what they can within reason. If they tell you to piss off, you really have no other option but to do so.
Nancy asks…
I traded in a car and the dealer sold my trade-in and then demanded the car back?
I have a friend who traded in her car (a Ford van, $2500 trade-in value) for a newer Pontiac van ($15,000 value), with no additional cash down beyond the trade in value. The contract was written so that if she (the purchaser) could not “obtain financing”, the dealership could demand the return of the Pontiac. The contract also specified that the dealership would maintain its own insurance on the Pontiac until financing was secured. My friend drove the Pontiac for about 2 months, during which time her Ford van was sold for an undisclosed amount. At the end of the 2 months +/-, the dealership called her and said that they were unable to obtain financing for her and demanded the return of the Pontiac. When she went back to the dealership, she maintained that the loan paperwork listed the dealership as providing financing (and it does). But the dealer demanded the Pontiac back and sold her a clunker in a straight trade for the $2500 trade-in of the Ford. They took the Pontiac and sold it as well. She wants her Ford van back, but doesn’t know what to do. Is there any basis for her suing the dealership to for damages over either the sale of the Ford or over the demand back for the Pontiac when the dealership had a) listed itself as the financing organization and b) demanding the Pontiac back after they had sold her trade-in?
CSC101 Customer Service answers:
Her van was what she used for a down payment instead of cash, she no longer has any claim on it.
The contract most likely says, (maybe in tricksy wording) that they will seek to “obtain” , not “provide” financing. If this is their standard contract it is most likely 100% legal, even if it is not easy to understand and/or not “fair”.
The best she could have done was to possibly get the $2,500 down payment back as cash, but she took the clunker instead. It’s a done deal.
Some used car sales people are low down dirty dogs, but they are usually following the letter of the law, in order to continue to sell cars as low down dirty dogs.
Courtesy of Y!Answers