Can you please explain $79 down and $79 a month?
(2011-12-18 15:30:05) 1. Says: Obviously, no sane auto dealership will sell a $15,000 vehicle for $79 in monthly payment and no interest. I mean, that works out to around 16 years.So how does this come-on really work?2. Says: From my Hyundai dealer:
"The main "gimmick" behind the $79 down and $79 a month is that it is a subsidized payment. In other words the dealer pays the difference between your actual payment and the $79. If your payment would actually be $379 the dealer would pay $300 and you would be responsible for the $79 for a set period of time. Typically the subsidized payment is only for 3 months and then you would be responsible for the full payment...
...do the math though. Most car payments are around $400 a month. If the car dealer is going to be paying $321 a month for 3 months, the dealer only pays $963 as a "discount". If you just had the dealer take the $963 off the price of the vehicle it would save you $18 a month off your total loan payment. With the average finance term in America being 72 months it would total $1,296 in savings."3. Says: $79.00 down and $79.00 a month?
That sounds like a great deal... if you're in the market for a 1997 Ford Escort. Works out to about $4k.
Read the fine print at the very bottom of the flyer or newspaper insert. It's an advertising gimmick and the car will not actually be there - and if it is, nobody will want it. It's the same reason retailers put a $200 flat screen TV on the front page of their Sunday ads. The cheap deal gets you in the door, and then they can sell you on something that will make them more profit.
Oh, and in the meantime, they'd like you to fill out these papers for a free drawing for a 4 GB MP3 player. Then they'll run your credit and see if you qualify for their "premium" 21 percent interest rate.
I try to steer my business away from dealerships that employ these kinds of tactics. For every one that does it, there's another family-owned dealership that finds it distasteful.4. Says: Cleveland 12/17/11
It would be the better deal ,.Auto buying,.Thinking in terms of current high prices,..Golly..?!
the payments after a down payment of $79.00 would pull just about very one wanting an Auto for,..mostly transportation,.would jump for payments of $79.00 per month,..!?? A new auto
- not an old used one,..?! Which one could only guess how long same could go without need-
ing a major repair job,.And, the costs that will accompany the erie Deal,.?!!!
$79.00 per month being less than $1,000.00 per year,.? So there be a catch,.Only,..what is
the catch,.Drive the auto until you feel you want a newer job,.then trade up,.Outright, for anot-
her new Auto,? I like this feel,.and,.in this mode,.one could see only " The Deal of Deals,..?!!"
Eliasis Yahwehei ( The Main Man )5. Says: This is just for a short period of time, say through Christmas and then the payment will go up to what ever a normal payment would be.6. Says: RIP, rest in peace, no wrong one rip off.7. Says: its probably for the first six months then jumps up to about 360 to 400 Tag: Can you please explain $79 down and $79 a month?