It wasn't long ago when zero percent financing for sixty months was unheard of. In fact most offers were only for a short period of time of maybe two or three years but after 9/11 the world changed in many ways. Not only was the traveling and commercial industries affected but also the retail world, especially large ticket items like homes and automobiles. Foreseeing a huge problem many auto manufacturers decided to do something to keep the market awake and as the ads mentioned to keep "America Moving".
So in October of 2001 0% for 60 months was released for the first time and auto dealerships could not stock enough vehicles. People were literally waiting in line to buy a new car or truck. It was in my opinion the greatest offer ever to be given to the general public on such a wide scale. To be able to borrow money for no charge was a huge savings on a level that made sense and allowed people to purchase vehicles they other wise would not have been able to afford.
Some might disagree and say cash for clunkers was a better offer and I agree it was a great deal but what if you didn't own an old used car? The 0% financing redefined and set a new level of what a great deal was. Instead of paying $20 to $25 per thousand borrowed for 60 months suddenly that same money only costs $16.66. So a loan for $15,000 is now only $250 a month instead of $300 to $350! Huge savings especially if you were buying a higher priced vehicle.
So, what does zero percent financing mean for you? In today's market we hear it all the time, zero percent on TVs, on home furnishings, on jewelry and of course on automobiles but is it still a great deal? Technically the numbers are all the same. The consumer is still saving just as much but if it is now a norm, a starting point some may argue it may not be enough. Consumers are expecting zero percent financing and money off the vehicles, but as dealer networks shrink and manufacturers cutting invoice to MSRP gaps in half its harder to show deals where a purchaser is saving thousands off the top. In fact many new vehicles are only holding a hundred dollars or so of markup.
Vehicles are now sold using value and comparison instead of starting prices high and just cutting the price. As an expert in this field I believe it makes the buying experience more enjoyable to the consumer since it eliminates the most stressful part of purchasing a new car. Surveys taken prove people would rather have a tooth pulled then negotiate a deal on a new car.
Today the buyer is given more information then ever before. You want to know the invoice price or what others are paying? You can find it all online. The Internet has actually helped the dealerships by informing customers on what is reasonable to offer or accept on a new vehicle. Buying a vehicle is easier then ever and all the tools are available to make the buying experience enjoyable.
If you are in the market for a new vehicle or would just like to see what the new Fiat 500 hundred looks like we invite you to visit us at Jake Sweeney FIAT in Florence KY or call us to set up a demo drive at 859-371-3428.