My husband and myself are looking at purchasing new cars. I'm wondering though if it's better to put a lot of money down upfront and have a lower car note or if it's better to take the higher payment and keep the money in savings. The higher note only bothers us if someone were to lose their job however we would have the money in savings. Considering its no interest I'm leaning on keeping my money and putting it in an account that has interest. But my husband doesn't like seeing a car note that high. I'm under the impression though that the money will be spent either way. Or would it be better to pay cash for 1 car and fully finance the other with nothing down? Any advice? Thanks in advance.
@Nicole4647:
0% interest often means they profit in other ways. Sometimes they have strictly enforced payment deadlines with high fees for failing to make the deadline. You may also see higher processing fees or various upfront fees. Stated another way, zero percent does not always mean no extra cost. Some dealers entice people with poor credit knowing they will fail to make a payment eventually. They can optimize this outcome by making the payment high enough to be difficult for you to make. They then repossess at the soonest opportunity when the agreement is not met so they can resell the car for profit yet again, having banked the money you already paid. Read the contract very closely.
My preference is to pay cash. Freedom from debt just feels less stressful. That's priceless. 4951