Dave Ramsey says: New cars selling at 0% interest is a gimmick
Aug 9, 2020, 4:05 AM
(AP Photo)
(AP Photo)
Dear Dave,
Could you explain why buying a new car at 0% interest isn’t a good idea?
– Raina
Dear Raina,
The only way you have a chance of getting 0% interest on a new car is if you have perfect credit and pay full MSRP (manufacturer’s suggested retail price).
But, if you walk onto a car lot with cash, and haggle with the salesperson a little bit, they’ll knock a bunch off the sticker price.
If you can buy the car for less than the 0% interest gimmick, how is that 0%? See what I’m saying? The cash buyer pays less.
Besides, you shouldn’t even consider buying a brand new car, unless you’re debt-free and have $1 million or more in the bank.
You lose a ton in value the second you drive a new car off the lot. How is that 0%? A new car also loses about 60% of its value in the first four years after you buy it. How is that 0%?
The whole 0% interest gimmick tricks a lot of unsuspecting folks into buying something they don’t need and can’t afford!
— Dave
