personal line of credit vs car loan

[sprocket1200]

Actually, we overpaid for the car as it was spring. We would have been better off buying in the fall.

We're does your wife like to shop? Maybe we should both profit her with the stock! Let her know our day spa is always open for her. Haha

[MrMatt]

The auto companies' finance divisions are offering way better rates than that. I recently financed a new Honda for 0.99% over 36 months. Some vehicles can be financed at 0%. Why bother with the banks?

Because you're still most likely getting the loan from a bank.
They also often offer cash purchase incentives, which are the difference between 0% and current car loan rates.

When I bought my car I got 0% financing, which really turned out to a normal BMO car loan, but they discounted it by several thousand dollars so that I'd have the same payment. I then transferred the balance to my LOC which had a lower rate than the car loan.

[sprocket1200]

Because you're still most likely getting the loan from a bank.
They also often offer cash purchase incentives, which are the difference between 0% and current car loan rates.

When I bought my car I got 0% financing, which really turned out to a normal BMO car loan, but they discounted it by several thousand dollars so that I'd have the same payment. I then transferred the balance to my LOC which had a lower rate than the car loan.

Kinda makes you wonder when they will start with negative interest rates.... Haha

[MrMatt]

Kinda makes you wonder when they will start with negative interest rates.... Haha

I wouldn't be surprised if they did, it's a great advertising campaign, wanna go half in on a business method patent? Couldn't you see people going for this?

This car is $20k cash, but if you spread the payments out to 5 years, you only pay $146 biweekly for a total of $19k, we want you to have this car so bad we'll actually PAY YOU one thousand dollars to take this low payment over 5 years.
If you go to 7 years, the biweekly payment will drop to $99, for a total of only $18k, that's another THOUSAND DOLLARS, by using our special extra low payments, we're actually paying you to buy a car today!

[sprocket1200]

From a business mindset I'd love to go for this. There are definitely enough financially illiterate Around to make millions from.

However, from a compassionate human being point of view, I must decline as I would much rather help educate the masses and save them some heartache by being informed.