Timeline for Do I pay a zero % loan before another to clear both loans faster?
Current License: CC BY-SA 3.0
13 events
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| Apr 13, 2017 at 12:25 | history | edited | CommunityBot |
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| Apr 2, 2017 at 9:41 | comment | added | mist42nz | @Ben Millar, re:comment to Warren. It wasn't a matter of "required purchasing as overpriced vehicle " - That decision to make a purchase was already made, it was just a choice between cash, borrow from third party at X%, or take car finance guys 0% rate. Options 1 and 3, are the same price. Option 2 means you have to "pay for the money you borrow". Thus 0% is "free" not as helicopter money from heavens, but "free" as in money you don't have to pay for (unlike the third party e.g. mortgage). | |
| Apr 2, 2017 at 9:37 | comment | added | mist42nz | In reputable countries a 0% interest offering means exactly that - that you can't get "rebates" or "discounts". Paying 0% or paying cash, gets you the goods for the same price. In such cases, take the 0%, and put the amount in term deposit - that way you get interest | |
| Apr 29, 2016 at 21:35 | comment | added | user9822 | @BenMiller, your basing this on assuption, you don't know what kind of deal the OP got. Your whole answer is based on assuptions not fact. | |
| Apr 29, 2016 at 12:16 | comment | added | warren | Ben: I did the evaluation of used vs new, and the new was better both times for me. It may not be better for everyone. | |
| Apr 29, 2016 at 12:07 | comment | added | Ben Miller | @warren In order to get that "free money" you were required to purchase an overpriced new vehicle, complete with instant depreciation. You could have saved much more by purchasing a used car with cash, but they successfully convinced you that you were getting a better deal because of the "discount" and the "free money." It's your choice, but don't think the car dealer gave you something for free. | |
| Apr 28, 2016 at 18:18 | comment | added | warren | You're incorrect about 0% loans not being "free money". If you buy a new car at 0%, you're getting "free money". Whether or not a new car is of appropriate value to you is an entirely different question. I've done 0% on new cars twice - the new car was worth it both times to me, and I got the employee/partner price both times, so I got the lowest the dealer would go each time. | |
| Apr 27, 2016 at 14:11 | comment | added | JTP - Apologise to Monica♦ | No problem. Since I can't 'vote' to close as dup, I usually comment for agreement. I'll defer to your view on this one. | |
| Apr 27, 2016 at 13:02 | comment | added | Ben Miller | @JoeTaxpayer I wouldn't close this as dupe. It's similar to other questions, but the details are different. Specifically, my generic question is one-sided; it doesn't ask what is best to do, just offers the pros for one option. It is okay to have similar questions with different details. I only vote to close as dupe when the questions are (almost) exactly the same, the other question has good answers, and no new good answers are likely. | |
| Apr 27, 2016 at 11:57 | comment | added | JTP - Apologise to Monica♦ | In the end, isn't this the same question? i.e. the snowball question. Therefore a duplicate? The snowball questions already have the pro/con list. I think the one you linked in you last sentence is the best. | |
| Apr 27, 2016 at 3:21 | comment | added | Ben Miller | @MarkDoony I have already noted that in both my second sentence here and in my other post about paying off a 0% loan. I stand by the notion that since 0% loans are a bad idea, it is in your best interest (no pun intended) to remove them from your life as quickly as possible and build up cash to pay for the next car, breaking the car loan cycle. Trying to optimize the math here is short-sighted: it's not about how many pennies of interest you will save on this loan, but how much you can save in the future by improving your behavior. | |
| Apr 26, 2016 at 22:19 | comment | added | user9822 | The problem with your answer is that the OP already has the 0% loan not looking to get one, so any penalty has already been paid. As long as the OP keeps making the minimum payments on time, as with the other loans, there would be no more penalty to pay on the 0% loan, however, the OP will still be paying interest on the other 2 loans in the mean time. | |
| Apr 26, 2016 at 14:55 | history | answered | Ben Miller | CC BY-SA 3.0 |