Price negotiated from MSRP

[Gitter]

The real question for a 0% deal is how long do you keep it? If you keep the life of the loan it’s worth considering. But you need to run it against your scenario (amount financed, available apr) and see how it shakes out.

Even if you only keep it for a few years, you are still likely to find the 0% interest is a better deal. When you are paying interest, your payments are going more toward paying down that interest than you are toward your principle balance. That ratio slowly shifts toward paying more of the principle balance after each month. So even with 4% interest, your monthly payments may only be paying slightly more than half the principle balance each month.

To put it a different way, your monthly payments are not split with 96% going to paying down your balance with only 4% going to the bank (as interest) each month. Depending on the loan, it may be more like 33% is going to interest and 66% is actually going to the principle during that first year or two. Again, the actual ratio changes each month...

So if you only keep your vehicle for 3 years on an 84 month plan at 4 to 5% interest (with no down payment), I bet the balance that you still owe will be pretty close to what the value of the truck would be. Heck, you may still be upside down (you still owe more than it's worth).

However, if you have 0% interest, 100% of your payments over those 3 years will have gone toward paying down your balance and nothing else. I would imagine that you would not be upside down with the value of the truck.

It's not ideal, but it's something to consider for those that might find themselves contemplating this scenario.

 

[Gitter]

I have been in touch with 5 different dealers and they are trying to fight strong. All of them have pretty much said the same things, that I qualify for 5500 rebates or 0% for 84 months. Calculating it out doesn't it make more sense depending on how much you are spending to actually take the financing?

I have made my point to them that I am ready to buy but don't need to and if they want a sale they can come down with their pricing. I don't think they want to think about next month so they are still trying to make as much as they can right now.

I will probably just wait and see what happens...

Good on you! Like Roddog2220 said...hold steady! I wouldn't be surprised to see them give a little more at the end of the month. With more cities and now even whole states going into lock-down, they are going to realize this is bigger than they where expecting.

Although the factories are closing, I believe many companies are still forced to pay the workers. So this is going to cost them. So it's smart for them to shift their plants on making medical supplies because the government will likely bail them out if Trumps emergency bill is passed. But this leaves the dealerships out of the loop and with inventory that they are paying for if they don't sell them soon.

So yeah, hold fast. Time is not on the dealer's side

 

[Z mann R2]

well i wouldnt think the 6.2 would get what the hemi would but if you dont have a heavy foot it would be close, i average 15 with a lift and 35s but it goes down to 11 when pulling a 6k trailer

I can guarantee you the 6.2 blows away this hemi in mileage. I’m getting 13-14 on the highway in my new Rebel it’s GARBAGE!!! My giant Escalade with the 6.2 gets 20!

 

[Vols1018]

So another dealer in my area is trying to swoop me in to hurrying by saying that the whole state is about to shut down dealers as well for the pandemic and once they do that the lower price offers will no longer be available … I was like ok buddy I guess I will wait you all out then...

 

[ktl5005]

I am holding out. I live in PA and all car dealership sales side is now closed. I am hoping come when they are allowed to open FCA sees the losses and throws on discounts WITH the 0% for 84. Like I told my associate, if they could do both, I'd be down in minutes for that Laramie

 

[ktl5005]

So another dealer in my area is trying to swoop me in to hurrying by saying that the whole state is about to shut down dealers as well for the pandemic and once they do that the lower price offers will no longer be available … I was like ok buddy I guess I will wait you all out then...

He isn't lying. In PA where I live, as of last night the sales side of the dealership is now closed by order of the governor. Only the parts and service is allowed open.

 

[Vols1018]

He isn't lying. In PA where I live, as of last night the sales side of the dealership is now closed by order of the governor. Only the parts and service is allowed open.

I didn't think he was lying about closing down...Maryland has pretty much closed everything down anyways, I was laughing at the part where all rebates, incentives, low prices will be gone when they open back up.

 

[antwon412]

All the dealers around me are now closed. So I will not be shopping for a new travel this weekend. Or the next couple weekends. Was planning on ordering a truck the way I wanted, but of course the plants are closed now too. Bummer.

 

[SilverSurfer15]

Yep these are unprecedented times for us, curious to see if how it plays out. But right now, the big 3 are looking rough for this year.

 

[Willwork4truck]

I just bought a 2020 Rebel yesterday 0% 84 months and 6k below the MSRP. So you can't get the dodge cash incentives but you can get the Bank and military incentive and the dealers have ways to lower the amount or increase your trade. Also there is a 0% 36 month $3k promo too and you can ad the bank incentive.

Dont forget to see if you qualify for the "Bonus Drive" $250 rebate. Google it. Hundreds of us have gotten the check...

 

[Airbeijing]

Even if you only keep it for a few years, you are still likely to find the 0% interest is a better deal. When you are paying interest, your payments are going more toward paying down that interest than you are toward your principle balance. That ratio slowly shifts toward paying more of the principle balance after each month. So even with 4% interest, your monthly payments may only be paying slightly more than half the principle balance each month.

To put it a different way, your monthly payments are not split with 96% going to paying down your balance with only 4% going to the bank (as interest) each month. Depending on the loan, it may be more like 33% is going to interest and 66% is actually going to the principle during that first year or two. Again, the actual ratio changes each month...

So if you only keep your vehicle for 3 years on an 84 month plan at 4 to 5% interest (with no down payment), I bet the balance that you still owe will be pretty close to what the value of the truck would be. Heck, you may still be upside down (you still owe more than it's worth).

However, if you have 0% interest, 100% of your payments over those 3 years will have gone toward paying down your balance and nothing else. I would imagine that you would not be upside down with the value of the truck.

It's not ideal, but it's something to consider for those that might find themselves contemplating this scenario.

Even if you only keep it for a few years, you are still likely to find the 0% interest is a better deal. When you are paying interest, your payments are going more toward paying down that interest than you are toward your principle balance. That ratio slowly shifts toward paying more of the principle balance after each month. So even with 4% interest, your monthly payments may only be paying slightly more than half the principle balance each month.

To put it a different way, your monthly payments are not split with 96% going to paying down your balance with only 4% going to the bank (as interest) each month. Depending on the loan, it may be more like 33% is going to interest and 66% is actually going to the principle during that first year or two. Again, the actual ratio changes each month...

So if you only keep your vehicle for 3 years on an 84 month plan at 4 to 5% interest (with no down payment), I bet the balance that you still owe will be pretty close to what the value of the truck would be. Heck, you may still be upside down (you still owe more than it's worth).

However, if you have 0% interest, 100% of your payments over those 3 years will have gone toward paying down your balance and nothing else. I would imagine that you would not be upside down with the value of the truck.

It's not ideal, but it's something to consider for those that might find themselves contemplating this scenario.

Keep in mind that car loans are in simple interest loans. The interest amount is added to the loan amount and entirety is divided into monthly payments. So, no matter how much you pay, there is no shift between interest and principal. You are thinking of amortized loan (house mortgage). Majority of the payments in front half of the loan goes toward interest. Any extra payments you make, you can request it be applied toward principal and overtime, you will pay less in interest.
.
Regarding being upside down on the loan, the only way to prevent it is to pay large amount of down payment, around 20% to stay ahead of depreciation.

 

[SilverSurfer15]

I wasn’t going to even respond but yep ^^.

Honestly it’s super easy to figure out the price of the truck, use google “auto loan calculator”, and get the details. The overall cost and the monthly payment. Then you can compare the two for whatever period of time/payments you desire.

 

[DRebel]

Dont forget to see if you qualify for the "Bonus Drive" $250 rebate. Google it. Hundreds of us have gotten the check...

Oh thanks I appreciate it.


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[Airbeijing]

The real question for a 0% deal is how long do you keep it? If you keep the life of the loan it’s worth considering. But you need to run it against your scenario (amount financed, available apr) and see how it shakes out.

Working from home is killing e and I need a little brain exercise. ( I hope my math is correct on this..)

I am looking at 20 D.T. Limited. 5.7L non-E-Torque, 4x4 with Lvl 1, sunroof, 33 gal, 3.92 gear, 20 inch wheels, Ram Box. Stickers for $68660.00. Assuming that I can get 14% off of MSRP and $5000 of factory rebates.

$68660 x.14-$5000 = $54047. With 1.0725 % local sales tax and $500 for fees = $58446.
If the interest rate is at 3% and 60 months loan. Total cost of the loan is $63012.
If the interest rate is at 5% and 60 months loan. Total cost $66777, and 84 months is $69390.
.
Now, if I were to take advantage of the zero percent interest and forgo the $5k factory rebate. Kept the 14% off MSRP, the sales amount with taxes and fees is $63828.
.
Sooo.... If you can get a 3 percent or better interest, then go with rebate, but you have 600 credit or worse you are better off with the zero percent interest.
.
Hope this makes sense and helps.

 

[Airbeijing]

I wasn’t going to even respond but yep ^^.

Honestly it’s super easy to figure out the price of the truck, use google “auto loan calculator”, and get the details. The overall cost and the monthly payment. Then you can compare the two for whatever period of time/payments you desire.

Orrr... If you had time to kill... See my other long winded reply.

 

[SilverSurfer15]

Ford just raised the bar on the other two.... it’s heating up.

 

[Roddog2220]

Ford just raised the bar on the other two.... it’s heating up.

well what did they do

 

[Eltaco]

Working from home is killing e and I need a little brain exercise. ( I hope my math is correct on this..)

I am looking at 20 D.T. Limited. 5.7L non-E-Torque, 4x4 with Lvl 1, sunroof, 33 gal, 3.92 gear, 20 inch wheels, Ram Box. Stickers for $68660.00. Assuming that I can get 14% off of MSRP and $5000 of factory rebates.

$68660 x.14-$5000 = $54047. With 1.0725 % local sales tax and $500 for fees = $58446.
If the interest rate is at 3% and 60 months loan. Total cost of the loan is $63012.
If the interest rate is at 5% and 60 months loan. Total cost $66777, and 84 months is $69390.
.
Now, if I were to take advantage of the zero percent interest and forgo the $5k factory rebate. Kept the 14% off MSRP, the sales amount with taxes and fees is $63828.
.
Sooo.... If you can get a 3 percent or better interest, then go with rebate, but you have 600 credit or worse you are better off with the zero percent interest.
.
Hope this makes sense and helps.

Or, If you’re not financing the entire truck, probably take the rebates. My entire finance charge if I maintain the life of my loan is under $2k.

Are you guys financing $60k after rebates on a limited?! I believe that’s about the only way this works out in your favor.

 

[SilverSurfer15]

well what did they do

0% for 84, deferred 3 month, next 3 payments paid by ford. 6 months total with no payments for buyer.

 

[Wrecktal]

0% for 84, deferred 3 month, next 3 payments paid by ford. 6 months total with no payments for buyer.

Any incentives on top or does it replace them?

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