waiting for the FRS? not anymore!

[frs10]

anyone waiting for an FRS?

maybe this will entice you this weekend?

http://www.scion.com/blog/2013/08/29/labor-day-weekend/

[that_one_guy]

is there really any advantage for not paying anything for 90 days? it extends the time until you are paid off by 90 days, and that is 3 more months to accumulate interest on your principle. I guess the only advantage would be if you just can't afford 90 days of payments, but in that case, why would a person in that situation buy a new car?!?!

[thill]

Originally Posted by that_one_guy

is there really any advantage for not paying anything for 90 days? it extends the time until you are paid off by 90 days, and that is 3 more months to accumulate interest on your principle. I guess the only advantage would be if you just can't afford 90 days of payments, but in that case, why would a person in that situation buy a new car?!?!

Yeah, it says right in the ad that interest and finance charges apply to the 90 day no payment "incentive"...

This is the type of thing that got us into the finanicial mess many were in just a few years ago...

[Frstorm]

I had my dealer move up the first payment to within two weeks from time of purchase. Dropped my monthly payment by 10 bucks just doing that

[DarkSunrise]

If this offer appeals to you, you're probably overextending yourself.

[frs10]

whoops... haha

[mush]

Im trying to pay mine off asap

[userjack6880]

Yeah, doesn't look too appealing. Just got a new job, so I've gotta normalize my budget, but I hope to smooth it out and start paying off the car faster than the agreed upon time.

Delaying it 3 months and having that interest accrue is not appealing.

[campy]

It gives you 3 months to flee to mexico in your new frs

[FRSBRZGT86FAN]

It's quite sad car companies do this tricky sales business all the time simply to accrue customers into there dealers, I think they hope badly that no one will notice. I think used would be the best option now (for me), I'm waiting till next spring to buy a '13 with a warranty, and assuming the trend follows they should be between 17k-23k I see ones right now for 21k. But why buy a new one and do the 90 days no payment? Just so you can get an absurd amount of interest? really? I think someone here said it best when he mentioned that this kind of monkey sales business is what started a part of our economic downturn in 2008.

[reni]

Wow! Just what I was looking for -- an opportunity to pay more money for the same thing!

[Anthony]

I came here to get mad that they were doing a big sale or something. Maybe like $3,000 off or so.

Not mad.

[sprintertrueno86]

WTH how is that even deal?

Should be Scion will pay the 1st 3months of your payment.

[Porsche]

Originally Posted by frs10

anyone waiting for an FRS?

maybe this will entice you this weekend?

http://www.scion.com/blog/2013/08/29/labor-day-weekend/

So, what does this really mean?

First let's note the wording:

"No Payments for 90 Days on New Scions"


Well, your first payment on a new car loan purchase would not be for thirty days; by extending that first payment out to 90 days, we have only ADDED 60 days, or two months. This is not the three months "extra" one might mistakenly think, initially.

You will be charged interest on those two months; that extra time before your first payment is due is not free.

What does this cost you, exactly?

Let's take a look…

Assume one buys the car on September 1, 2013.

Assume a loan of $25,000 @ 4% interest for 6 years.

Ordinarily, the first payment would be due on October 1, 2013.

But, the first payment is deferred until December 1, 2013 (90 days from purchase date).

Represent the 4% interest as a decimal. 4/100=0.04. That is the ANNUAL interest rate. We want to compute how much interest will cost us per MONTH. So, divide 0.04/12=0.00333333… That's now our MONTHLY interest rate. (You knew that there are 12 months in a year, right?)

We begin with a loan balance of exactly $25,000. So, we multiply the monthly interest rate by the principal, the outstanding balance of our loan this month and we get:

$25,000 x 0.00333333 = $83.33

So, $83.33 is the cost of borrowing $25,000 for one month. Two months, then, equals 83.33 x 2 = $166.66, or let's just round this off to $167.

It will cost us $167 extra to postpone our first payment until December 1.

On December 1, our new loan will be $25,000 + $167 = $25,167 @ 4% for 6 years.

Paying 4% interest for 6 years (72 months) on $167 will cost us an extra $2.61 per month, or $188 extra over the full loan period.

So, if we pay off this loan in 6 years, what does it cost us to accept this "deal?"

$188

Each of you must decide whether this is worth the cost to you.

I hope this has been helpful.