Originally Posted by 377Z
The bottom line is, 0%/72 or $3,500 for a 360 is not enough to entice me to buy, and the fact that the H3 also has 0%/72, or $7,000 kind of underscores that as the H3 is a fresher, trendier product with more cachet (despite the fact that I personally prefer the 360’s).
How much the 0%/72 is worth to an individual depends on stuff like how much you finance, what the next lowest rate you can get vs. the alternative cashback amount. You also must let the loan run the full term to get the full benefit. Its also a good idea to get gap insurance, since you WILL be upside down for most of the loan, though I think the cost of gap insurance is not huge.
My credit union currently will give me a 72 mo. loan for 4.69%. Now 60 mos. is the longest term loan I have ever gotten in the past, & I was willing to have the nominally higher interest rate to retain the option of having a low payment should I choose not to add to the principal for a given month. I paid it off early, and plan on doing so on the one I have currently. I just can’t go that long with car payments.
So, invoice + destination for one of the Trailblazer LT’s that is stacking up on dealer lots is ~$28,683. Subtract $3,500 cash, $500 conquest, $1,500 GM card & you’re down to $23,183. I think the new vehicle tax in Crook county where I live is 7% & tag/title is ~$200, so it would be $25,005 OTD. I would put down everything I can sell my Civic for, and judging from what they go for around here I will get $5,000. So I would be financing $20,005 at 4.69%. Cost of that loan would be $2,985. Now, anyone who knows a lick about math knows that a few extra payments will knock the end cost down considerably, and I ALWAYS pay early, be it car loan, mortgage, whatever. So in short, even if I let the loan go out all six years without knocking out ANY extra principal, then the answer to your second question is no, 0%/72 is not worth $3,500. Its potentially worth $2,985 at most to me, considerably less in fact since I typcically pay loans off early.
I suppose if I financed the whole amount & let the loan go over the entire term, the cost of the loan would be $3,731, so it techically could be worth more than the cash on the hood, but that’s not how I work.
You know what? I know what you’re going to say: “You weren’t going to buy one anyway!”
You what else? You are right. I am not in the market for an SUV. I do like them and still have my second one, but I was not planning on buying another when I replace my Civic—the cost is not worth the benefit to me, and that is not a big deal. The only way I will buy another SUV is if the cost goes down, i.e. more incentives. I think I might be part of a growing segment of the population, judging by trends in SUV sales.
It looks like I have a 2 month wait before I even start shopping, so I have time to sit & watch if the pot gets sweetened.
Edit: Forgot to mention, at a total cost hovering around $28K no matter how you slice it above for a 360, it is not a value to me. The total cost would need to be about $5,000 less for me, all things considered.
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