Test Drove the 2015 Prius Four / Thinking of upgrading from 2006 Prius

Probably so you can pay it off faster, especially if you have a higher interest rate on it. Then you'll pay slightly less interest on it vs a 60 month financing option. The sooner you can pay off the car, the sooner you can have some money going towards other things again.

I managed to snag a $1000 rebate AND 0% financing for 60 months when I bought my prius liftback last August. Usually you only get one or the other. But I think Toyota gave this plan to get people to buy the prius. It also went for a few months if I recall, probably due to lower demand because of "low" gas prices.

That said, I still plan to pay it off within 2-3 years. But it's also nice not owing any interest in the meantime.

 

The shorter time you finance something,, the less interest you pay, even at 1.5% check the difference in interest paid over the length of the loan. Remember interest owed is your worst financial enemy, interest owed to you is your best friend. As for 0% interest deals, remember you don't get the rebate offered usually $500 to $1000.
To answer the question of 36, it means you spend very little time "upside down" on your loan ( the car being worth less than what you owe on it.)

 

I'd wait and see Gen4. Then if it is worth it go for Gen4, if not Gen3 will be selling at huge discounts.

 

Being upside down depends on how much you put down. While it's not bad advice to shoot for paying something off sooner, I think as long as your within your means, it doesn't really matter how long you finance for.

I actually prefer to finance for longer, as long at its a good rate, to keep the payment low. That way you have the option to pay as much as you want or stick with the low payment if your finances get tight.


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