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brrrz · 07-11-2016, 01:00 PM

Best deal out there is to wait for the manufacturer to come out with 0% financing if that manufacturer does this promotion. In all honesty month to month they move money around to incent different buyers but in the end game it all ends up being "about" the same.

The dealer does not have its own bank but they are actually buying that 0% off a credit company. The cash incentive is there to make up the money they have used to make the 0% happen.

Picture this. Each dealer will have 'x' amount of money they are able to play with in a pot and use to incent buyers and each month they just move it around. One month they might use that money to attract finance buyers so they put their money towards 0% and depending on the manufacturer there might also be a small delivery allowance or dealer incentive to go with it and a cash incentive to offset the interest charge. This is the best time if you plan on financing. Now later in the year "or currently" dealers will come out with year end blowout, invoice pricing, etc. Here you will see huge discounts and also very large delivery allowances or dealer cash incentives but at the same time because of this they will increase the interest rate. This is typically the best time for a cash buyer.

Time for an example. I will use a 2016 Mustang EcoBoost with a MSRP of $38,498. Last month Ford had 0% financing on all 2016 Mustangs up to 72 months with a June bonus of $750 taking the price down to $37,748 and giving you a monthly payment of $587mo.

Now this month same car but with current promotions the price is discounted a huge $5,795 down to $32,703 which is a banging deal for a cash buyer but the interest rate has been bumped up to 4.89% giving you a payment of $588mo. Weird how it turns out to the same right? Now as a person financing you will want to take the 0% because every payment goes to the principle. Im not saying this is the case for everything because it is not but this is a great example of how dealers move money around to incent different buyers with it being the same deal in the end for them.

07-11-2016, 01:00 PM	#6
brrrz Captain Happy Bubble is my Homeboy Join Date: Aug 2014 Location: Cloverdale Posts: 319 Thanked 956 Times in 170 Posts Failed 27 Times in 8 Posts	Best deal out there is to wait for the manufacturer to come out with 0% financing if that manufacturer does this promotion. In all honesty month to month they move money around to incent different buyers but in the end game it all ends up being "about" the same. The dealer does not have its own bank but they are actually buying that 0% off a credit company. The cash incentive is there to make up the money they have used to make the 0% happen. Picture this. Each dealer will have 'x' amount of money they are able to play with in a pot and use to incent buyers and each month they just move it around. One month they might use that money to attract finance buyers so they put their money towards 0% and depending on the manufacturer there might also be a small delivery allowance or dealer incentive to go with it and a cash incentive to offset the interest charge. This is the best time if you plan on financing. Now later in the year "or currently" dealers will come out with year end blowout, invoice pricing, etc. Here you will see huge discounts and also very large delivery allowances or dealer cash incentives but at the same time because of this they will increase the interest rate. This is typically the best time for a cash buyer. Time for an example. I will use a 2016 Mustang EcoBoost with a MSRP of $38,498. Last month Ford had 0% financing on all 2016 Mustangs up to 72 months with a June bonus of $750 taking the price down to $37,748 and giving you a monthly payment of $587mo. Now this month same car but with current promotions the price is discounted a huge $5,795 down to $32,703 which is a banging deal for a cash buyer but the interest rate has been bumped up to 4.89% giving you a payment of $588mo. Weird how it turns out to the same right? Now as a person financing you will want to take the 0% because every payment goes to the principle. Im not saying this is the case for everything because it is not but this is a great example of how dealers move money around to incent different buyers with it being the same deal in the end for them.