Sioux County, NWIA | Brahamfireman - 9/28/2020 09:45
Never figured out that logic either. I'll ride a 0% interest loan right till the last day. its basically free money, your getting a free loan!!!!!!
Eh. I got a story for you. It was 2001. I was graduating from college. Happened to run into my econ prof at one point during the proceedings. This was the beginning of the era of .9% financing. I asked him, how does the seller make any money at a .9% interest rate? That is below normal loan rates, below bank interest rates (at that time) and below inflation rates. “Simple” he said. He pointed at his watch. “What would you pay me for this watch?” "I dunno. $50?” I venture. “Ok” he said. “$50 if you give me cash right now. $75 and I sell it on payments at .9% interest.” Don’t kid yourself, business is in business to make money. The .9% or 0% interest rate is a loss leader for them. They are making their money on an inflated up front purchase price.
Edited by Gearclash 9/28/2020 23:08
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paying cash vs financing
