Quote:I sold Kubota tractors for years with 0% down, 0% interest loans. What they lacked in loan profit they sure as heck made up for in market share.


In your payment example you're spending a total of $18,000 dollars. If you have $18,000 cash to buy said car with and are offered a 0% loan, you should take the loan. The $18,000 will gain more interest in the bank account over the 5 year period than accruing $300 a month over the same period would.

 

I get where you are coming from, but the thing is, who is the "$0 down, 0% interest" loan offers targeting?  It's certainly not the person that can afford to pay $18,000 cash outright.  They are targeting the very people that don't have any savings to speak of. 

 

Quote:While I agree with you on all fronts, unfortunately that's just the way it is in today's society. Realistically how many people have funds available in a savings account for an emergency let alone money set aside to make 5 figure purchase? I can't tell you how many people I spoke with that were living hand to mouth but were asking for a 40k loan for a Mercedes or Cadillac.

 

That's the problem... and it doesn't necessarily have to be a "luxury" vehicle.  Even someone making a modest salary will spend more than they can afford.  As I said before, if you can't at least afford to put 10% down on a large purchase, then you can't afford it.

 

Quote:It's sad the poor life decisions that put so many people into their own financial hell.  The mistakes snowball, then they are stuck in a miserable situation by their addiction to a lifestyle they can't afford.

 

Exactly my point.

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