Thread: used or. new
View Single Post
Old 02-16-2016, 01:40 PM   #49
Ferra
I don't like cheese but I love milk!
 
Ferra's Avatar
 
Join Date: Nov 2002
Location: Van
Posts: 1,980
Thanked 895 Times in 243 Posts
Failed 105 Times in 49 Posts
Quote:
Originally Posted by skiiipi View Post
problem with a 84 month finance is that you'll end up with negative equity
so if after 5 or 6 years you want to sell the car
there is a good chance the car will be worth less than that you till owe on it.

try to keep your finance to 48/60 months if you can.
Sorry..horrible advice

(Psychologically, or forced saving is another topic...) but financially, when you have 0% APR, you should always go $0 down and pick the longest term possible.

You are better off saving all those extra cash in your bank, TFSA, or whatever investment you have.
It doesn't cost you anything to hold those extra debt when it is 0% financing. Cash in your own pocket earn you income on the other hand.

Negative equity is a pointless terms when it comes to buying a car...
Regardless of whether you decide to sell the car in 2,3,5,6, or 20yrs etc, you can always pay back whatever is owed w/ no penalty anyway.

Before you decide which routes, you should decide whether buying a car is the right choice for you in the first place tho.
Ferra is offline   Reply With Quote
This post thanked by: