Somebody check me on this one... I found an online calculator that says if I finance $25,000 at 5.8% the interest paid in the first 3 car payments is $357.27 If I then refi at 2.72% which Bankrate says was last week's average my total interest would be $1766.80 for a grand total interest paid of $2124.07
If I got 0.9% on the same $25,000 the total interest paid is $576.09. $2124.07 minus $576.09 is $1547.98 so if I'm giving up the better interest rate for cash back I'm actually LOSING $47.98 plus I have to fart around with refinancing so it'd be better to stick with the 0.9% in the first place. Worse yet (for the dealer I went to Sunday anyway) when I Google I find Ford's incentives page, they'll give me 0.0% for 60 months with $750 trade in assistance or $1,000 and 2.9% on 60 months AND $750 trade assistance. Even with that I'm paying $1745.38 in interest that I wouldn't pay at the 0.0% rate right? So unless Ford gives me more than $1745.38 in incentives I'm better off taking the 0.0% interest. -Curt ________________________________ From: Curt Raymond via Mercedes <mercedes@okiebenz.com> To: Mercedes Discussion List <mercedes@okiebenz.com> Sent: Tuesday, July 29, 2014 11:19 AM Subject: Re: [MBZ] OT: How is this game played exactly? The question of the note is an interesting one. Right now Ford will offer 0.9% financing OR $1500 off. The dealership noted that to get the $1500 off you end up with something like 5.8% financing but after 3 payments (and 90 days) you could refinance into something much lower like 2.8% and that they do a lot of that. I need to run some numbers and see if that system with the $1500 is a better deal than 0.9% overall. -Curt _______________________________________ http://www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com All posts are the result of individual contributors and as such, those individuals are responsible for the content of the post. The list owner has no control over the content of the messages of each contributor.
