Comment on $1,000 car loan payments are on the rise, stressing household budgets

D@piefed.social ⁨8⁩ ⁨hours⁩ ago

• baines@piefed.social ⁨8⁩ ⁨hours⁩ ago

  0 percent interest auto loans are a thing 

  source

  • WoodScientist@lemmy.world ⁨1⁩ ⁨hour⁩ ago

    Every dollar of interest subsidies manufacturers give is a dollar they cut from discounts and other incentives.

    source

    • baines@piefed.social ⁨18⁩ ⁨minutes⁩ ago

      where is this world of perfect information you have about car prices?

      far as i know i paid under regional prices on the average before even the no interest

      but if you have a source i’ll take it

      source
  • SaveTheTuaHawk@lemmy.ca ⁨7⁩ ⁨hours⁩ ago

    You seriously believe a car dealer is losing money?

    A car loan is principal and interest. You got a 0% “deal”, you overpaid on the principal.

    source

    • baines@piefed.social ⁨34⁩ ⁨minutes⁩ ago

      they’re definitely making less margin

      source
    • booly@sh.itjust.works ⁨1⁩ ⁨hour⁩ ago

      Every once in a while there are multiple parties structuring a deal where someone is left with a bad deal when it’s all said and done. As a consumer, you just have to make sure it’s not you.

      But take, for example, the early days of Moviepass. You pay a cheap subscription to a service, and they buy you unlimited mobile tickets at the theater. Too good to be true in the long term, but in the short term it was a good way to spend some money that venture capitalists were giving away basically for free.

      Businesses aren’t always smart. Sometimes they make financial mistakes and it’s your duty as a responsible consumer to punish those businesses for those mistakes.

      In the case of dealer/manufacturer/financing incentives and the individual salesman commission, sometimes the kickback/fee scheme leaves someone else holding the bag. If you can negotiate a lower sticker price because it comes with some predatory terms on financing, but there’s no penalty for prepayment, it might make the most sense to take the low sticker price (made possible by the lender paying the dealer a kickback for the loans), finance at high rates, and then pay the whole thing off as soon as you can, so that you get the “discount” without having to pay high interest/fees, then you walk away with a good deal in exchange for just a little bit more hassle and paperwork. Sometimes the incentives swing the other way, too, where the lender is affiliated with the manufacturer and needs to juice sales volume by offering below-market rates on financing. As long as you can actually see how everything works and you can find the pain point, it may be possible to get a good deal and dump the bad deal on some faceless corporation for them to worry about.

      source

      • baines@piefed.social ⁨23⁩ ⁨minutes⁩ ago

        it can be as simple as selling at cost / relatively small loss keeping you in an ecosystem for future knock on profits

        not as common in cars but plenty of examples in retail

        source
    • captainlezbian@lemmy.world ⁨4⁩ ⁨hours⁩ ago

      Yeah, now don’t get me wrong, you can get some deals on cars when dealers see the lot space as increasingly valuable compared to the car on it, but they’re salespeople, they’ll swear up and down that that’s the case no matter what the situation is.

      You want to know how you can tell you got a good deal? You compare it to what similar vehicles are being sold for at other places, you have an independent mechanic check it out (an honest dealer will be perfectly happy with you doing that), and you ask a trusted financial institution (ideally a credit union) what they would loan you for it. In general you trust that everything a car salesperson is doing that sounds good is to keep your eyes on the hand that isn’t in your pocket.

      source

      • baines@piefed.social ⁨22⁩ ⁨minutes⁩ ago

        if you’re having to get another mechanic to look at it, i’d probably not come back

        already said fuck you to honda ever again for this kinda behavior

        source
  • D@piefed.social ⁨7⁩ ⁨hours⁩ ago

    There’s no such thing as a free lunch.

    source

    • baines@piefed.social ⁨35⁩ ⁨minutes⁩ ago

      who said the car was free?

      you’re just not paying interest

      source
  • floquant@lemmy.dbzer0.com ⁨7⁩ ⁨hours⁩ ago

    No they aren’t, maybe technically but no one is lending money for free, aside from Klarna whose business model is preying on those that can’t pay back

    source

    • bitwolf@sh.itjust.works ⁨2⁩ ⁨hours⁩ ago

      During covid my coworker for a 0% interest loan on a 2016 4rinner TRD pro. It was for 80k.

      Dudes chilling, taking his time to pay it off, saving for a house.

      source