Just go by interest rates... - Saab NG900 & OG9-3 Bulletin Board - Saabnet.com
The banner above is an advertisment - if it asks you to download software, please ignore.
Site News -
[General |
Members |
C900 |
9000 |
NG900 & OG93 |
93 |
95 |
NG95 |
99 |
Sonett |
Vintage Models |
Clubs |
Other Cars |
FAQs |
Gifts |
Member Photo Galleries |
Member Directory |
Classifieds |
Manuals |
*Buddy Registry |
*Mileage Registry |
Polls |
What's New |
Raffle |
Photo of the Month |
Sponsors]
[Main NG900 & OG93 Bulletin Board | BBFAQ |
Prev by Date | Next by Date | Post Followup ]
Member Login / Signup - Members see fewer ads. - Latest Member Gallery Photos
Just go by interest rates...
Posted by TimF [Email] (more from TimF) on Thu, 27 Feb 2003 17:52:56
In Reply to: Lots of good stuff, thanks, Dennis, Wed, 26 Feb 2003 18:23:09
Members do not see ads below this line. - Help Keep This Site Online - Signup
People who tell you to pay cash aren't taking into account the opportunity cost of that money...the interest you could be earning if you invest it elsewhere.
I will argue that the decision on whether to purchase outright with saved cash or to finance (lease or buy) depends entirely on interest rates. Long term returns on investments in the US stock market have averaged 7-8% over the past century. If the interest rate you can get on a car is less than this, leave your saved money invested and finance the car. You earn the difference in rates.
Interest rates on car loans (and "money factors" on leases) are so low right now I can't imagine anybody not taking advantage of this free money. The effective interest rate on Saab's current 9-3SS lease deal ($999 down, $299/mo, 36 months, $14323 residual, $26525 MSRP) is actually an effective interest rate of somewhere between 0 and -2% (not counting disposition fees or excess mileage at the end of the lease). That is, they're paying YOU to take this car at MSRP. They're still making money on the car's mark-up and, they hope, excess mileage (30K over three years is pretty small for the average American.)
-Tim
posted by 156.153.255...
Posts in this Thread:
- Should I lease??, Dennis, Tue, 25 Feb 2003 19:33:56
- Lots of good stuff, thanks, Dennis, Wed, 26 Feb 2003 18:23:09
- Here are the cheapest ways to go:, gatorcpa, Wed, 26 Feb 2003 13:36:02
- Re: Should I lease??, stillsaabing, Wed, 26 Feb 2003 10:01:46
- Buy a SAAB which is a year or two old, JoeB, Tue, 25 Feb 2003 22:10:28
- Re: Should I lease??, Mason, Tue, 25 Feb 2003 21:20:48
- Re: Should I lease??, jp, Tue, 25 Feb 2003 20:15:56
Members do not see ads below this line. - Help Keep This Site Online - Signup
Post a Followup
No Site Registration is Required to Post - Site Membership is optional (Member Features List), but helps to keep the site online
for all Saabers. If the site helps you, please consider helping the site by becoming a member.
StateOfNine.com
|
SaabClub.com
|
Jak Stoll Performance
|
M Car Covers
|
Ad Available
|
Random Saabnet.com Member Gallery Photos (Click Image)
This is a moderated bulletin board - Posting is a privilege, not a right.
Unsolicited commercial postings are not allowed (no spam). Please, no For Sale or Wanted postings, SERIOUSLY.
Classifieds are to be listed in The Saab Network Classifieds pages.
This is a problem solving forum for over 250,000 Saab owners, so expect to see
problems discussed here even though our cars are generally very reliable. This is not an anything goes
type of forum. Saabnet.com has been a moderated forum since 1988. For usage guidelines, see the
Saabnet.com Mission and Purpose Page. Please remember that you are
not anonymous. Site Contact | Site Donations | Other Sites by SP -
Poverty2Prosperity.org | Run Club Menlo Park | ScreenBot
Site Members do not see red text instructions, bottom of the page anchor ads, or box ads.
Click here to see all
the Site Membership Benefits!