The current offer is 4.9% for 60 mo., or $1,000 cash back. Anybody want to take a stab at what 0% for 60 mo. correlates to for cash back. Current offer expires tomorrow, so I guess we will find out soon enough.
rumor is the cash back will stay the same, but a better finance rate. you can take one, but not both.
0% financing for 60 months started today (at least in Chicago). I already had one salesman (whom I spoke with 6 months ago) call me to announce it. I did the following net present value (NPV) analysis to calculate what the financing is worth in current dollars: Assume an out the door price of $27K (and no trade in or down payment) and that a "conventional" 60 month loan would be at 6%. The zero percent loan (brings back memories of the "Saved by Zero" jingle) is worth $3440 if you are getting 2% on your money in the bank. Also note that the zero percent also offers a savings over purchasing the car outright with cash (no loan). In this case it is $1300 savings which still beats the $1000 rebate being offered as an alternative to zero percent.
the only incentives i was able to find for southern cali was $500 cash or 4.9% on 60 months.. seems like there's better deals everywhere but cali.. boo!!
I received a promotional email today from Big Two Toyota in Chandler, AZ which lists $2,000.00 customer cash for 09 Prii or APR (Tiers I, II & III) of 0.0/0.0/1.9 and a special lease price of $229.00* *2009 PRIUS AUTOMATIC MODEL 1224 ($24294 MSRP) $2599 DOWN PAYMENT * ALL LEASES 36 MONTHS, 12,000 MILES PER YEAR. ALL LEASE PAYMENTS ARE PLUS TAX, LICENSE FEES AND $399.00 DEALER DOC FEE. ALL LEASES SUBJECT TO FINANCE APPROVAL AND CREDIT TIER 3 OR HIGHER WITH TOYOTA FINANCIAL SERVICES. THERE IS NO SECURITY DEPOSIT. I bought my 09 Touring Package 6 from Big Two after having no luck dealing with my local GST Toyota dealers. Regards, Dave
Google: amortization calculator. Dead simple to use, no arithmetic skills required. Here is an example calculator from PenFed's website that is hard-wired to their current 3.99% apr offer. If the car you want to buy is say $23k, the total cost will either be 23k (the 0% apr option), or $22k with interest. The internet calculators usually give the monthly payment; multiply that amount by the loan_term for total cost. Other interest rates are simple ratios.
A $26k loan at 6% apr (best to take out a smaller loan, with the rebate) for 60 months costs $30,159.17, or $3,019.17 more than $27k. In the language of bean counters, you have taken account of the $1000 time value of this rebate money in a reasonable manner -- namely, by gaining 6% apr tax-free.
0% APR for 60 Months is a great deal. Wish they offered that in Houston. Hoping the June Incentives look better than May.
