Good Deal on 2018 Camaro 2dr coupe on 2SS Redline Edition?

trader1

2018 Chevy Camaro 2dr Coupe 2SS Redline Edition
MSRP
$47,730
Selling Price $42,000 with 0% financing for 72 months or
$37,800 with 3.99% financing for 72 months.

I don't know why different deals being offered to me...

kyfdx

trader1 said:

2018 Chevy Camaro 2dr Coupe 2SS Redline Edition
MSRP
$47,730
Selling Price $42,000 with 0% financing for 72 months or
$37,800 with 3.99% financing for 72 months.

I don't know why different deals being offered to me...

For $8/mo, more, I would take the rebate and the 3.99% financing.
If you sell anytime in the first 39 months, you'll be ahead.

And, even if you keep it for 72 months, you'll only be out an extra $580.

If you take the 0% financing, you (or the dealer) loses a $4200 incentive, which is why the price is more.

kyfdx

Is it a good deal on a 2018 model?

Check pricing, here:
https://www.edmunds.com/tmv.html

mpgxsvcd

kyfdx said:

trader1 said:

2018 Chevy Camaro 2dr Coupe 2SS Redline Edition
MSRP
$47,730
Selling Price $42,000 with 0% financing for 72 months or
$37,800 with 3.99% financing for 72 months.

I don't know why different deals being offered to me...

For $8/mo, more, I would take the rebate and the 3.99% financing.
If you sell anytime in the first 39 months, you'll be ahead.

And, even if you keep it for 72 months, you'll only be out an extra $580.

If you take the 0% financing, you (or the dealer) loses a $4200 incentive, which is why the price is more.

Can you explain this a little further. It looks like the zero interest payment would be about $600 and the 3.99% payment would be about $608. How would you end up ahead after 36 months with the 3.99% payment since it is $8 more a month and you pay less principal earlier on in the loan?

Don't you pay mostly interest in the beginning with a traditional loan? With the 3.99% plan wouldn't you pay $8 more a month and pay less principal per month as well? Yes your total principal is lower but isn't the difference in interest enough to make up for the lower principal as you get a couple of years into the loan?

What percent of the total interest would you pay in the first 36 months of a 72 month loan? Is it much greater than half of the total interest?

Update: I see how it works now. With the 3.99% interest rate you are taking the savings all upfront. So even though you are paying more per month and less against the residual you start out WAY ahead. The interest only starts to catch up down the road and it doesn't appear to be as aggressive as I thought it would be.

I was thinking it was like a home loan where you pay almost entirely interest early on. If that was the case the interest would catch up really quickly. Is there a formula for calculating what percent of the interest you have paid for each month of a loan?

Michaell

mpgxsvcd said:

kyfdx said:

trader1 said:

2018 Chevy Camaro 2dr Coupe 2SS Redline Edition
MSRP
$47,730
Selling Price $42,000 with 0% financing for 72 months or
$37,800 with 3.99% financing for 72 months.

I don't know why different deals being offered to me...

For $8/mo, more, I would take the rebate and the 3.99% financing.
If you sell anytime in the first 39 months, you'll be ahead.

And, even if you keep it for 72 months, you'll only be out an extra $580.

If you take the 0% financing, you (or the dealer) loses a $4200 incentive, which is why the price is more.

Can you explain this a little further. It looks like the zero interest payment would be about $600 and the 3.99% payment would be about $608. How would you end up ahead after 36 months with the 3.99% payment since it is $8 more a month and you pay less principal earlier on in the loan?

Don't you pay mostly interest in the beginning with a traditional loan? With the 3.99% plan wouldn't you pay $8 more a month and pay less principal per month as well? Yes your total principal is lower but isn't the difference in interest enough to make up for the lower principal as you get a couple of years into the loan?

What percent of the total interest would you pay in the first 36 months of a 72 month loan? Is it much greater than half of the total interest?

Update: I see how it works now. With the 3.99% interest rate you are taking the savings all upfront. So even though you are paying more per month and less against the residual you start out WAY ahead. The interest only starts to catch up down the road and it doesn't appear to be as aggressive as I thought it would be.

I was thinking it was like a home loan where you pay almost entirely interest early on. If that was the case the interest would catch up really quickly. Is there a formula for calculating what percent of the interest you have paid for each month of a loan?

I'm sure a quick google search would turn up lots of amortization schedules for car loans.

Here's one I found:
https://calculator.me/vehicle/amortization.php

moropo

This is an old thread but to answer the question simply, if you sell within the first years you would owe less because you financed ~37.8k vs ~42k