0% Financing

[jl13]

no catch since its thru Chrysler capital, although as I recalled in my experience there are some dealers that use a different financing institution like Ally, capital, etc, and won't honor it.
well the catch might be if you let them, they will try to sell you any kind of package, "you know since you aren't paying any interest you might as well not loose on the chance to add anything, extended warranty, service contract, etc" - some things could be value but others you can get cheaper later on
And I think the 0% is only on the big horn,
I was still lucky to get 0% for 72 plus 5K off early 2021
the extended warranty I got way cheaper on my own - and there is a thread here on it if I remember about extended warraties

 

[LS-RR]

No catch. I got 0% for 72 months with Chrysler Capital just a few weeks ago. I was able to get a decent discount since it was truck month and I was a hard sell.

 

[GKIII]

You don't get as much in rebates (if such a thing exists in today's market). Usually, you are still paying less in the long run when you factor in finance charges with more rebates. Gotta run the numbers yourself.

 

[swing4terps]

When I bought this time last year it was 0% for 72mos and $2,750 in rebates or $4k in rebates and qualified financing.

I knew 0% was an option but finance manager was insistent it was not possible despite me asking multiple times. I did not escalate and walked away with $4k rebates and 3.5% for 72 mos. Wasn’t sitting well and researched when I got home. I was right of course. The 0% for 72 was better for me. I put a lot down, don’t drive much, planned on keeping a while. I’ll never be underwater. Called them back and said fix it or I’ll bring the truck back. They were apologetic and obliged.

Know your options and don’t be afraid to question! Lesson learned.

 

[mikeru82]

For my situation, I got the same discounts with the 0% for 72 months that I would have gotten if I had financed my truck with any other lender. The 0% financing seemed too good to be true, but there were no hidden fees or penalties. Just pure savings. They didn't even try to upsell me on anything since I didn't even visit the finance office. All the paperwork was done with the sales rep that I was dealing with. I normally don't finance for this long, but with no interest payment there's reason to stretch my budget to make a larger payment. And I can pay it off faster if I choose to do that. With my down payment I was not underwater with this truck at any time. It was a no-brainer for me.

 

[Aseras]

Its usually 0% and less incentives ( cash discount ).

Its completely different now because they don't need to offer any incentives.

When I bought my 2020 Longhorn it was 0% at invoice ( up to 84 months ) or 2.9% and 4,000 incentive. math says you'd pay nearly 6,000 in interest if you kept the loan at 2.9% so you'd be better off taking the 0%.

Some of the offers on les popular models were 8-12k incentives and those were definitely better deals to take the bad rate and refinance asap. You don't need to wait at all to refinance. waiting the 90 days or 6 months or whatever BS the dealership says is just so they don't lose their commission. If you refi early they get a "chargeback" on their kickback.

 

[Yankee Echo]

There are plenty of manufacturers that have offered 0% in the past (going back decades?). I'm surprised the OP really doesn't know about this. The average credit score is around 715 so 0% is a marketing tool to get people in the door. I doubt many buyers back out at the point of learning they don't qualify for the lowest rate (as evidenced by earlier posts) or the vehicle they fell in love with isn't eligible.

I expect to be at 0% for 48 or 72 months on a Big Horn depending on how the bonus offers stack and what results in the least cost to me. The number of months isn't so much of a concern but the longer I get to hang on to my cash and let it earn interest is a nice double dip.

 

[Goldsy]

0% seems to be a lot more common in Canada than the USA. I got 0% on my 21 Limited back in September. The catch usually is, you have to forfeit any rebates and discounts offered. Even in doing so, it ends up to you paying less over the finance term. It was cheaper for me for sure. I was still able to use the preferred pricing discount through work, but had to give up the factory offered rebates to get the 0%. It still ends up being cheaper.

 

[Jokerpro]

I got 0% for 72 months on the big horn I bought in early March. No hidden fees. And no I do not have an 800 credit score, actually closer to 700. Not sure why some are approved and some aren’t.

 

[Grimgreg]

They were offering $1000 to take that deal when I bought mine, on top of the $2500 they already took off from other incentives. Turned it down, didn't want to deal with a loan.

 

[MO Rebel]

I just closed on my Rebel last week. I was preapproved at 1.99% for 36 months through my credit union. Was planning to finance $50K. Got preapproved by Chrysler Capital for 0% 48 months.

Rebates were basically the same. With my own financing, $1,000 National Retail Cash, $500 Bonus Retail Cash for my region, and $1,000 Ram website cash.

With Chrysler Capital, $1,000 Chrysler Capital Cash (in lieu of the $1,000 National Retail Cash), $500 Bonus Retail Cash for my region, and $1,000 Ram website cash.

The real kicker was, Chrysler Capital didn’t require anything down, and I was able to finance the Mopar MaxCare at 0% for 48 months as well (with dealer matching the Ziegler quote). There were no other fees or charges of any kind. It is truly a fantastic financing offer.

Saved me $1,550 in finance charges versus financing through my credit union, got exactly the same rebates, and have the extra $16K that I was planning on putting down and paying for the warranty that I can invest over the next three years before having to make those last 12 monthly payments.

 

[Cajun_]

I looked around in the search and can’t find an answer to my question. If I missed it, I apologize. I’m looking at financing my new truck with Chrysler Capital for the 0% financing. But, I’m wondering what the catch is. There’s is no way they are going to finance my truck at 0% and make no money. What charges, fees etc will I be expected to pay? Is the 0% really worth it after monthly charges, fees etc?

They try and sell you the extended warranty twice as hard

 

[Rock Crawler]

I’m trying to figure out this 0% financing disclaimer chart found on the Ram Site. It appears to be a fee chart of some sort. Anyone?

 

[MO Rebel]

I’m trying to figure out this 0% financing disclaimer chart found on the Ram Site. It appears to be a fee chart of some sort. Anyone?

View attachment 126202

It’s just showing you how much your payment would be at various rates and terms for each $1,000 financed. For example, if you are financing $60,000 at 0% for 48 months, your payment would be $20.83 x 60 = $1,249.80 per month.

 

[Rock Crawler]

It’s just showing you how much your payment would be at various rates and terms for each $1,000 financed. For example, if you are financing $60,000 at 0% for 48 months, your payment would be $20.83 x 60 = $1,249.80 per month.

Gotcha. Makes sense.

 

[jl13]

Its usually 0% and less incentives ( cash discount ).

Its completely different now because they don't need to offer any incentives.

When I bought my 2020 Longhorn it was 0% at invoice ( up to 84 months ) or 2.9% and 4,000 incentive. math says you'd pay nearly 6,000 in interest if you kept the loan at 2.9% so you'd be better off taking the 0%.

Some of the offers on les popular models were 8-12k incentives and those were definitely better deals to take the bad rate and refinance asap. You don't need to wait at all to refinance. waiting the 90 days or 6 months or whatever BS the dealership says is just so they don't lose their commission. If you refi early they get a "chargeback" on their kickback.

Yea very true, i got 11k off a 4th gen back in 2017, a trade in plus an extra amount of down payment and even with a high interest rate i came up way on top.

 

[jl13]

There are plenty of manufacturers that have offered 0% in the past (going back decades?). I'm surprised the OP really doesn't know about this. The average credit score is around 715 so 0% is a marketing tool to get people in the door. I doubt many buyers back out at the point of learning they don't qualify for the lowest rate (as evidenced by earlier posts) or the vehicle they fell in love with isn't eligible.

I expect to be at 0% for 48 or 72 months on a Big Horn depending on how the bonus offers stack and what results in the least cost to me. The number of months isn't so much of a concern but the longer I get to hang on to my cash and let it earn interest is a nice double dip.

I feel that ram has been beating the rest in terms of the 0% interest and bonus offers.I remember when i got my 2021 last year i did check ford, gmc and chevrolet and the best was 1.9 % i think from ford. And i thinks its being that way for a few years

 

[Yankee Echo]

I feel that ram has been beating the rest in terms of the 0% interest and bonus offers.I remember when i got my 2021 last year i did check ford, gmc and chevrolet and the best was 1.9 % i think from ford. And i thinks its being that way for a few years

I wonder if in part that's due to Ram trying to hang on to second place in sales over Chevy. In Q1, Ram only moved 6k more trucks. Of course if you combine Chevy and GMC since their the same truck, Ram is really in 3rd.

 

[jimothy]

I feel that ram has been beating the rest in terms of the 0% interest and bonus offers.I remember when i got my 2021 last year i did check ford, gmc and chevrolet and the best was 1.9 % i think from ford. And i thinks its being that way for a few years

That’s part of the answer to “why would a manufacturer offer 0%? There must be a catch!” To keep you from buying from a competitor instead.

Other answers: to encourage you to but now instead of later, or buy something instead of nothing. Or, to buy a more expensive vehicle than you would have without 0% financing. It’s just another incentive.

If you can get 0% on a vehicle you were planning on buying anyway and at the time you were planning on buying, take it (assuming you don’t miss out on other incentives), even if you could pay cash. If 0% entices you to buy more or sooner, or if you can’t trust yourself to keep money in the bank or invested, that advice is null and void.

But otherwise, take the 0%, hold on to your money to invest, build a safety net, or pay down other interest bearing loans. Heck, it times of 8.5% inflation, any interest rate under that is negative real interest, and so it may be worth taking the loan. IF you can trust yourself to be prudent with the money you otherwise would have paid in cash towards a truck you would have bought regardless.

Keep in mind my financial advice is worth every penny you paid for it.

 

[Rich6896]

This topic is very helpful. I have not given my credit score much thought. I pay my bill down to zero every month. I found my score was 769. I was wondering why I was not in the 800s. as it turns out, even though I pay in full at the end of the month, at any point in time during the month I was using a high % of debt. I now am paying off my credit card every few days. Next week I expect to be in the 800s.