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Originally Posted by Technic
I just got 2.5% for 72 months for a VW CC two weeks ago so this 5.9% from BMW is not inflation-related at all, this is just BMW going back to basics: making a lot of money with less demand.
By the way, I also got my M3 at 0.9% for 60 months last year...
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Good for you for getting such a favorable rate, but I am not sure what your point is. The interest rate from a financial institution has nothing to do with the projected inflation? I never said 5.9% is due to the inflation, but how do you figure it has nothing to do with the projected economical conditions?
Quote:
Originally Posted by jwnpgh
A
Anyway, the reason to have a long loan with little down is in the event you lose the car and the insurance company only pays a blue book value or the loan only. You will be out any down payment if the numbers come out not in your favor.
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Are you serious? You should stop your friend from giving your more financial advises.
An insurance company will pay out a fair (typically near blue book) value for your car in case of a total loss. That amount doesn't change the fact that you still owe the loan amount to the lien holder(s), unless you took out a gap insurance. Remember your car is only a collateral, not the end of your loan obligation.