xlayedoutx

I received a letter last night from the dealership where I bought my car. The sales manager is an old friend of mine. It was a letter letting me know that around september they will be offering 0 percent interest on all 07 model Mustangs. Hand written on the bottom of the notice it read "I thought this might be a good way to get around the interest you're currently paying on your loan" and was signed by my friend.

Now it sounds smart to me but then again this is my first new car and i'm not sure how all this works but basicly i'm looking at tradeing in my 07 mustang with a high interest rate, that would be 8 months old come september for a new 07 mustang with 0 interest they have on the lot. Does this sound like a smart move to bypass my interest. I'm not sure how much I would be looking at for a trade in on mine but if i'm paying $7,000 in interest and I take a loss of $4,000 on the trade in wouldn't I still be saving $3,000? Let me know what you guys think.

HEADACHEZ

Trade it in a get a V8

Robbieg

+1.....Get a GT!

MN_Mustang06

trading up to the V8 would probably negate any savings on the intrest, and would probably end up costing you more. Also don't forget you have to pay sales tax on the new vehicle regardless of V6 or V8.

davisinla

Did you borrow the money from Tony Soprano? How do you calculate you are paying $7000 in interest?

Not to throw cold water on your plan, but since you asked - I'm going to guess that you'll need to qualify for the 0% loan. If you couldn't qualify for a lower interest in the first place, I'm wondering if you'd be able to qualify for 0%. From Ford's web site on their current finance incentives: "Not all buyers will qualify."

You know, this thread gave me a deja vu - seems like you've been thinking about getting rid of that car ever since you got it...

xlayedoutx

Well my credit score is 756 so qualifying won't be a problem, and I did qualify for lower interest rates but my payments weren't where I wanted them . The only way I was to get what I wanted with 0 down was to take an extended loan with a high intrest rate . Heres my chance now to get out of it.

No I haven't been wanting to get rid of the car . The Grabber Blue talk was just that TALK . I know I got hosed at first with the interst rate and the long term loan but I got what I wanted. Now if the chance comes along to recoupe a little of the money I'm losing from the intrest why not take it ?

davisinla

Well, then, in answer to the question you posed in the title of this thread, if you can truly decrease your debt by buying a new car (without extending the payments) then, yes, it would be a smart move.

My parting advice: make sure to look at ALL the numbers.

RobK

You'd be better off doing a refi with Capitalone. You pick the term and likely the rate will be better than your current rates. I think you'd end up short with such a soon trade-in. Of course, you don't really no until you give it a whirl. Give it a shot and see where things go. You're not obligated if things aren't where you want them. Just don't get your hopes up.

xlayedoutx

Yeah I'm not getting my hopes up. I'm perfectly fine with keeping the car I have, I'm just always on the look out for a better offer. Who knows come september they may not even have anything i'd take on the lot. The only way I would do it is with a car with the same options or more and either Silver or Tungsten. Well see what happens though. I'm at least going to go and hear what they have to say.

RobK

Just remember that even if they get you in another car for the same payment at a lower rate you're not really ahead since you'll lose the year you've already paid into yours.

crazyhorse

Dude, your avatar is just plain nasty.

kevinb120

Dude, a dealer doesn't know what the incentives are on April 2nd, let alone September

Actually I just checked and it is up now for April(I have checked every day as I bought one a week ago).. They remain the same as now

antdog

Regardless of everything it is depended upon what you get on trade-in. Dealers make more on used cars than they do on new cars. Get your value back on your trade-in. If you can't get what you want on your trade in, tell your "friend" to take off. You are never better off tradeing in a recently bought new car on another new car. You will lose all the money on the first year that way, unless you can make it back on the trade in.

Hollywood_North GT

Personally, something smells fishy to me. <: ))))><

xlayedoutx

I don't think its something ford is offering, I think its something that dealership is offering or going to offer. From what I was told it wasn't Ford credit that was being offered. He said its something they do every year with their banks to get their end of year sales up. I'll see if I can't find out more info but I don't want to get him in trouble if he's releaseing info he can't or shouldn't be releaseing right now. I don't know what their policy is.