gofer79 Posted July 31, 2006 Share Posted July 31, 2006 Hey Guys, When I bought my LGT a month and a little back, I was offered 0% APR. I could have paid it off, but since it's 0%, I figured I would keep the money in my savings. My question is, do I have to make the monthly payments or can I just pay it all out in the end? Do they usually penalize with some sort of lay payment fee or something? For those of you who have experience regarding this, please let me know. Any input would be appreciated. Thanks Link to comment Share on other sites More sharing options...
Scotty Posted July 31, 2006 Share Posted July 31, 2006 You don't technically own the car, the bank does since they paid for it. They expect you to make the monthly payments, if not they will come and take the car from you and **** with your credit. Link to comment Share on other sites More sharing options...
rallispec Posted July 31, 2006 Share Posted July 31, 2006 Yes, of course you will have to make your monthly payments for each month during the first two years.. It's 0% interest for 2 years, not "no payments for two years". . at the end of the 2 years you will most likely have you're payments jumped up to some insane interest rate - so it would be in your best interest to pay off the remainder of the loan at that point. Link to comment Share on other sites More sharing options...
Legacy05 Posted July 31, 2006 Share Posted July 31, 2006 Yes you still have to make your minimum monthy payments. Link to comment Share on other sites More sharing options...
gofer79 Posted July 31, 2006 Author Share Posted July 31, 2006 Thanks for the reply guys. Just wondering... Link to comment Share on other sites More sharing options...
chenc544 Posted July 31, 2006 Share Posted July 31, 2006 at the end of the 2 years you will most likely have you're payments jumped up to some insane interest rate - so it would be in your best interest to pay off the remainder of the loan at that point. No, at the end of 2 years you will paid off your loan. It's a fixed term loan with repayment period of 24 months. Your monthly payment is exactly 1/24th of your total loan amount. It's not a credit card, there is no minimum payment or what not. You make your monthly payment or they repo your car. Simple. Link to comment Share on other sites More sharing options...
hondas123 Posted July 31, 2006 Share Posted July 31, 2006 Repo your car and your credit is in the toilet. Make your payments and be certain they're on time. Otherwise I'm sure they'll be late fees. - The Mortgage Man Link to comment Share on other sites More sharing options...
rallispec Posted July 31, 2006 Share Posted July 31, 2006 No, at the end of 2 years you will paid off your loan. It's a fixed term loan with repayment period of 24 months. Your monthly payment is exactly 1/24th of your total loan amount. It's not a credit card, there is no minimum payment or what not. You make your monthly payment or they repo your car. Simple. then that's not that bad of a deal if you can afford it.... Honda was running a promotion recently were it was $79 dollars a month for 2 years... but if you didnt have the loan paid off at the end of the 2 years, the remainder of the loan reverted to a 3 year loan at 24%... basically it would more than quadruple you're payments.. Link to comment Share on other sites More sharing options...
krzyss Posted July 31, 2006 Share Posted July 31, 2006 The plan: put 1/4 value of the car into 6 months CD. put 1/4 value of the car into 12 months CD put 1/4 value of the car into 18 months CD. Keep 1/4 in the checking account so you have it available for monthly payment that you MUST make. Enjoy interest. Make sure that after each account matures you transfer money to your checking account. Krzys Link to comment Share on other sites More sharing options...
red beast Posted July 31, 2006 Share Posted July 31, 2006 there is no such thing as a free lunch Link to comment Share on other sites More sharing options...
Scotty Posted July 31, 2006 Share Posted July 31, 2006 Sure there is. I got 3 free lunches when I resigned from my job last week. Link to comment Share on other sites More sharing options...
red beast Posted July 31, 2006 Share Posted July 31, 2006 Sure there is. I got 3 free lunches when I resigned from my job last week. but you had to give up your job to get them. Link to comment Share on other sites More sharing options...
driggity Posted July 31, 2006 Share Posted July 31, 2006 Hey Guys, When I bought my LGT a month and a little back, I was offered 0% APR. I could have paid it off, but since it's 0%, I figured I would keep the money in my savings. My question is, do I have to make the monthly payments or can I just pay it all out in the end? Do they usually penalize with some sort of lay payment fee or something? For those of you who have experience regarding this, please let me know. Any input would be appreciated. Thanks In the future this is the sort of thing that you should probably figure out before you sign any loan paperwork. Link to comment Share on other sites More sharing options...
BOY Posted July 31, 2006 Share Posted July 31, 2006 The plan: put 1/4 value of the car into 6 months CD. put 1/4 value of the car into 12 months CD put 1/4 value of the car into 18 months CD. Keep 1/4 in the checking account so you have it available for monthly payment that you MUST make. Enjoy interest. Make sure that after each account matures you transfer money to your checking account. Krzys wow, someone finally figured out how to make money and make a car payment at the same time . Any of my customers that suggest stroking a check I try to "flip" to the 0% finance option. I get nothing from it but I do end up discounting less, usually, which keeps the boss happy. Link to comment Share on other sites More sharing options...
Beanboy Posted August 1, 2006 Share Posted August 1, 2006 CD route is exactly what I did with the 1.9% deal... -B http://www.standardshift.com Link to comment Share on other sites More sharing options...
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