 | |||||||||||
|
To print article, click Print on your browser's File menu. Go back | |||||||||||
|
|||||||||||
 | |||||||||||
|
Recent articles by Bankrate.com: • A practical wedding gift: cash toward a home, 4/21/2003 • You've won the lottery! Now what?, 3/16/2003 • You can build an emergency fund, 3/16/2003 More... |
|||||||||||
|
Related Resources Look for a car loan Visit MSN Autos Take the 0% or the rebate? Bankrate.com's auto loan search engine Related Sites Edmund's AutoSite AutoPedia Cars.com CarPrice.com Kelley Blue Book |
|||||||||||
| The Basics | |||||||||||||||
| Zero-percent financing is back | |||||||||||||||
|
Anxious automakers are battling bad times with a new round of good deals on loans. Here is how and where to look, plus some tips on handling dealers' tricky moves. By Bankrate.com Automakers looking to rev up auto sales have rolled out a wide array of interest-free financing offers. Numerous 2003 models are available with zero-percent financing for up to 60 months. And qualifying for the offers may be easier than you think. Both General Motors and Ford say that more than 70% percent of customers who apply for zero-percent financing qualify for the rock-bottom financing deals. "That's a pretty good number," says Deborah Silverman, a spokeswoman for General Motors. "That's pretty high." But before you rush out to an auto lot in search of interest-free financing, consider this: Most folks who qualify for zero-percent financing don't take the deal. They scoop up a hefty cash rebate instead. "Three out of four would qualify, but only one out of four enter into a zero-percent financing contract," says Daniel Jarvis, a spokesman for Ford Credit. "That's because of the cash incentives in the marketplace right now." Cash is still king for many consumers. And when you consider that $2,000 and $3,000 cash rebates are widespread, it's easy to see why. Scoping out the deals Here's a roundup of the latest zero-percent financing deals and cash-back offers. DaimlerChrysler is offering interest-free loans for up to 60 months or $3,000 cash back on its Sebring, Concorde and 300M sedans. The 2003 PT Cruiser comes with a $2,500 rebate or zero-percent financing for 36 months. Several 2003 minivans are available with interest-free financing or hefty cash rebates. The offer runs through April 30. Ford is offering zero-percent financing for up to 60 months or $3,000 cash back on 2003 Ford Taurus and Crown Victoria sedans, Windstar minivans, Explorer, Explorer Sport, Expedition and Excursion sport utility vehicles and Ranger F-150 and Econoline pickup trucks. All 2003 models of the Ford Focus, Escort ZX2, Mustang, Explorer Sport Trac and Escape also come with financing as low as zero percent or cash rebates. The offer runs through May 5. General Motors is offering interest-free, 60-month loans on all 2003 models from Cadillac, Chevrolet, Saab, Saturn, Pontiac, Oldsmobile, GMC and Buick. For customers who pass on discount financing, cash rebates up to $3,000 are available. The offer runs through April 30. Kia Motors is offering interest-free loans up to 60 months or $2,000 cash back on the 2003 Kia Spectra. The 2003 models of the Kia Rio and Optima sedans, Sorento SUV and Sedona minivans come with interest-free financing or cash rebates up to $2,000. Kia's interest-free financing offers run through April 30. The cash rebates are available through June 30. Mitsubishi is offering zero-percent financing for up to 60 months on 2003 Montero, Montero Sport SUVs and Eclipse, Galant and Diamante passenger cars. Interest-free financing for up to 36 months is available on 2003 Lancer sedans and Eclipse Spyder convertibles. Cash-back rebates ranging from $1,000 to $2,500 also are available. The offer runs through April 30. Subaru is offering zero-percent financing on all 2003 Subaru Legacy, Outback, Impreza, Forester and Baja SUVs. The offer runs through April 30. Think price first Whatever incentive you choose, it's important to negotiate the price of the new car as well as the price of your trade-in. Autoweb.com, Edmund's Automobile Buyers Guide, AutoSite, Autopedia, Kelley Blue Book, Cars.com and CarPrice.com are among the sites offering timely pricing information (see links at left). Do your homework. Be sure to visit several Web sites when researching pricing information. Information may vary from site to site. When in doubt, contact an auto manufacturer directly. Don't forget to ask about regional incentives in your area. You could save hundreds, maybe thousands more, by snapping up a regional incentive. And some regional offers give you the best of both worlds: a cash rebate on top of a discount financing deal. As tempting as a dealer's discount financing may seem, don't overlook deals from local banks and credit unions. You can check auto loans on MSN Money, here. Bankrate.com's auto loan search engine will also help you compare car-loan rates in your area (see link at left). Your strategy for the dealer's lot It's wise to have an auto loan ready to go before you set foot in a dealership. That way if a dealer wants your financing business, he's going to have to beat the best rate you've found on your own. Here's one last tip, and it's an important one. It's best to think of a new-car purchase as three separate negotiations: the price of a car, the price of a trade-in and the financing. A car salesman will try to lump this stuff together. Don't let him. If you do, you might not notice when the purchase price of the car gets bumped up or the trade-in-value of your old car gets knocked way down. Some dealers might even tell you that you can't have zero percent or any discount financing without paying sticker price. Don't fall for it. Insist on three separate negotiations and get the best deal you can on each one. Shop as many dealers as necessary to land the deal you want. The best way to land a good deal is to make dealers compete against each other for your business. Be persistent. | |||||||||||||||
| |||||||||||||||
MSN Money's editorial goal is to provide a forum for personal finance and investment ideas. Our articles, columns, message board posts and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Microsoft of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances.