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Buying a Car During the Credit Crunch

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Comments

  • fezofezo Posts: 9,384
    I wouldn't mind that one.

    I would much rather have incentives to buy cars than loans directly to the auto makers. Unlike the Chrysler bailout I don't think you have a situation where there is a company saving vehicle waiting in the pipeline. Hard to believe now that the K cars - Reliant and Aries - were that but they were.
  • volvomaxvolvomax Posts: 5,274
    I would just like to see it revert to the old tax law where you could deduct interest paid on an auto loan.

    Actually, that is not a bad idea.
  • andre1969andre1969 Posts: 22,050
    I would just like to see it revert to the old tax law where you could deduct interest paid on an auto loan.

    Well, you can always roll it into a second mortgage or home equity loan, and get the writeoff that way. Oh, wait, that's one of the things that got this country into the credit crunch mess it's in! Ooops. :blush:
  • lemkolemko Posts: 15,196
    ...I got 0% financing on my car.
  • joel0622joel0622 Posts: 3,302
    ...I got 0% financing on my car.

    Might have depending on how much of a rebate you gave up to get 0%.

    I.E lets say the rebate was $5K or 0% and you chose the 0% on the loan because on a $30K loan @ 8% would have cost you $6500 in finance charges. But if you could have deducted that $6500 at tax time you may have been better off
  • duke23duke23 Posts: 488
    lemko wrote:
    "...I got 0% financing on my car. "
    And joel replied :
    "Might have depending on how much of a rebate you gave up to get 0%.

    I.E lets say the rebate was $5K or 0% and you chose the 0% on the loan because on a $30K loan 8% would have cost you $6500 in finance charges. But if you could have deducted that $6500 at tax time you may have been better off ."
    Point well taken, Typically in normal times those with high ficos would take the cash and lesser the low finance rate. But given that the fed will probably do another 50 bps bringing us to some WWII low level in rates I'd advise most to take the rebate. 8% a tad high for comparison in this environment but I realize it was a constructive example. How long, how long must we sing this song? C'mon '09.
  • Karen_CMKaren_CM Posts: 5,018
    A reporter from a large local newspaper would like to speak with consumers who have ruled our purchasing a GM or Chrysler vehicle due to doubt of the company’s future. If you are a consumer who is not considering a GM or Chrysler vehicle, please respond to ctalati@edmunds.com with your daytime contact information no later than Monday, November 17th.

    Community Manager If you have any questions or concerns about the Forums, send me an email, karen@edmunds.com, or click on my screen name to send a personal message.

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