0% Financing on 2008.5

[dave108]

Hi,

I'm kind of confused by the 0% financing on the 2008.5 Mazda3... The deal is 0% for up to 60 months, right? Seems too good to be true.

If I decide to buy, I'm prepared to pay the whole cost, without any financing. Normally, I would pay cash and hope to be able to negotiate somewhat off the cost of the vehicle, equivalent to the value of whatever financing is being offered (nobody gives away free money for five years - there must be some value in that - although I guess it may be absorbed by Mazda's financing company).

Many models often often have a cash purchase incentive in lieu of financing... but there's no cash incentive on the 2008.5. So it seems like it would be silly to pay upfront, and that it would make more sense to get the best deal possible, and take the 0% financing over 60 months, or am I missing something?

[WeatherB]

The 0% financing is an excellent deal... You do have to pay the $70 or so set-up fee but that's pretty much it.

The financing is through Scotia.

[shootemup]

If your prepared to pay the whole cost, wait for the 2009 models. $2000 cheaper.

[dave108]

If your prepared to pay the whole cost, wait for the 2009 models. $2000 cheaper.

That's where it gets interesting... Buy the 2008.5, take a loan at 0%, invest $30,000, paying your car payments out of that fund in monthly chunks... After 5 years, you've probably gotten a few thousand in returns (more than 2k), depending on what investment assumptions you make. Assuming that they don't stick you with a higher price for taking the loan, it might be better to take the loan. Of course, if they're offering 0% on the 2009, maybe it's better to wait...

[Naveg]

That's where it gets interesting... Buy the 2008.5, take a loan at 0%, invest $30,000, paying your car payments out of that fund in monthly chunks... After 5 years, you've probably gotten a few thousand in returns (more than 2k), depending on what investment assumptions you make. Assuming that they don't stick you with a higher price for taking the loan, it might be better to take the loan. Of course, if they're offering 0% on the 2009, maybe it's better to wait...

Tax on the returns though...it would probably be pretty close, you'd have to crunch the numbers. Also depends on where you invest the money - with parts of the market as they are, investing it in a car might not be such a terrible idea.

[Jeff-TheBiz]

Or you can wait another 3 or 4 weeks until all the 2008.5s are sold out and then just go with a 2009 whether you want to or not.

0% is for real... and any way you slice it, it is better than $2000 off the car.

[shootemup]

Or you can wait another 3 or 4 weeks until all the 2008.5s are sold out and then just go with a 2009 whether you want to or not.

0% is for real... and any way you slice it, it is better than $2000 off the car.

Yeah, it's sure hard to beat the idea of having a remote trunk release

[visco9]

0% is for real... and any way you slice it, it is better than $2000 off the car.

Very true, I was prepared to pay cash also for the 08.5, but there was no cash discount on them so I took the 0%, and I must say it was a better alternative in hindsight even if there was a cash discount.

[Millsy]

Hi,

I'm kind of confused by the 0% financing on the 2008.5 Mazda3... The deal is 0% for up to 60 months, right? Seems too good to be true.

If I decide to buy, I'm prepared to pay the whole cost, without any financing. Normally, I would pay cash and hope to be able to negotiate somewhat off the cost of the vehicle, equivalent to the value of whatever financing is being offered (nobody gives away free money for five years - there must be some value in that - although I guess it may be absorbed by Mazda's financing company).

Many models often often have a cash purchase incentive in lieu of financing... but there's no cash incentive on the 2008.5. So it seems like it would be silly to pay upfront, and that it would make more sense to get the best deal possible, and take the 0% financing over 60 months, or am I missing something?

Dave
We went for a 2008.5 at 0% and still managed to get around $1600 off by negotiation. We were offered a 2008 at discounted prices but at normal finance rates. Overall you can't go wrong with 0%, money doesn't get any cheaper! From what i hear the 2009 is cheaper but i think it works out more with finance. If your paying cash however i would wait for it....Who knows what return you would get in the current climate investing elsewhere.

[tuck4]

How can they say it is 0% financing then offer a $3600 cash deal later in the year (2008 m3 GS offer) yet insist it is 0%??? They are obviously making there interest off you and disguising it as 0%. I just hope they come out with a cash deal on the 2008.5 soon.

[Jeff-TheBiz]

How can they say it is 0% financing then offer a $3600 cash deal later in the year (2008 m3 GS offer) yet insist it is 0%??? They are obviously making there interest off you and disguising it as 0%.

Fine print that is so fine, it is invisible...

[Fezuki]

When do you think we'll see 0% financing again?

[aris]

I bought my 08 mazda 3 with 0% finaciing....

[Cardinal Fang]

When do you think we'll see 0% financing again?

Given the slow down in the economy people would be less and less inclined to buy vehicles, import or domestics. If the U.S. hits their recession and every indication is that they are already there, it will spill over here. The car companies will have to offer incentives to buy cars.

I think the 0% will be back and will remain longer.

[kevcol74]

Usually (in my experience) they offer the 0% when they stop producing that model year or want to get rid of "new old cars". I bought my 2006 Escape, ordered it in February at 0.5% financing. Just a few weeks later they dropped to 0%, but you could no longer order a 2006, it was on what was available on lots. I had to order mine to get the exact options I wanted. The 0% will limit you to what is available only (colours/options etc).

I agree with Cardinal though, with the US economy the way it is, 0% will be around for a while, or back sooner than later.

[Jeff-TheBiz]

After lowering the MSRP on every car, I don't think you are going to see 0% come back as soon as you think.

I do expect the 2009s to be 0% around March/April due to the anticipation of the 2010 slated for June/July.

[Cardinal Fang]

Way to kill my buzz Jeff.

[mazdas3sporte]

loool man i got ripped when i bought the 08 with 0%.... and now the 09's gonna be 0%!!! aghh iam pissed, but what can we do lol, my rents financed a 08 gl 320 and i just looked the the site and the 09`s come with 20x9 inch rims instead of the 18x8 we have!!!, I WANT THOSE 20s!! not to mention the price decrease! , frak

[Zoom Zoom Boy]

loool man i got ripped when i bought the 08 with 0%.... and now the 09's gonna be 0%!!! aghh iam pissed, but what can we do lol, my rents financed a 08 gl 320 and i just looked the the site and the 09`s come with 20x9 inch rims instead of the 18x8 we have!!!, I WANT THOSE 20s!! not to mention the price decrease! , frak

The 09 Mazda3's do not come with 20 inch rims... You couldn't fit 20" rims on the 3.

[Olestra]

loool man i got ripped when i bought the 08 with 0%.... and now the 09's gonna be 0%!!! aghh iam pissed, but what can we do lol, my rents financed a 08 gl 320 and i just looked the the site and the 09`s come with 20x9 inch rims instead of the 18x8 we have!!!, I WANT THOSE 20s!! not to mention the price decrease! , frak

What's a gl 320?

You can't be pissed that you got 0% financing. You still got a great deal and you have the car now and you're driving it instead of waiting another 5-6 months when the 09's get 0% financing.
Every year will have 0% financing, if you were to always wait for the newer model to receive incentives, you'd never get a car.
The $2000 MSRP reduction is nice but you had no way of knowing and $2000 is a huge deal. The freight and PDI went up, so the OTD price is less than $2000 in difference.

[EastYork3]

When I got my 08.5 the factory to dealer incentives made the total cost of the car less then if I had 0% financing.