Is this a good deal on new SUV & which financing to choose?

[frannn]

DH priced a Saturn Vue, and as long as we take ownership of the car by 1/31/05, it will cost $25435 (before tax). This includes the 2005 V6 all wheel drive Vue, and additional options of side curtain airbags, and mp3 compatable cd radio. Being Costco members, we will also get $400 worth of dealer body stuff (roof rack, or mats, front grill) for free. The incentives for purchasing by 1/31 (already reflected in price) is 1500 cash back for already owning GM vehicle, additional 1250 back or warranty extended to 5 years, 60,000 miles (we would choose the warranty), and either additional 750. cash back or 3.9% financing. Costco advertises 4.54% new auto financing on their services website, but the rate may vary due to credit history. Is this Saturn a good enough deal to purchase so quickly, and would you go with the GMAC 3.9% financing, or the 750 back and possible 4.54% Costco financing (also 5 years)? If we can get the best Costco rate of 4.54, our monthly pymt would be about 8. less per month (taking the 750 off the principle).
Heeellllpppp...........

 

[janette]

Do you have some financial software? In Quicken you can set up a loan so are able to look at the differences, I would set up a loan for each loan using the different principals & interest and see which has the lowest bottom line.

You can probably do the same thing using an online loan calculator.

 

[cslittle999]

I did a quick calculation with an online loan calculator and it looks like it is cheaper to do the 3.9% financing.

I wasn't sure if the price you gave included the $1500 incentive so I ignored that and the taxes.

A 5 year loan for $25435 at 3.9% has payments of $467.28 and the cost of borrowing is $2601.80.

A 5 year loan for $24685 (25435 - 750) at 4.54% has payments of $460.65 and a total cost of borrowing of $2954.00.

If you go with the higher financing rate you would pay an extra $352.20 over the five years. Even if the $1500 incentive wasn't included you still pay an extra $326.40 over the 5 years with 4.54% loan.

I used the online loan calculator at http://www.yona.com/loan/.

 

[Brian Noble]

edmunds.com is a great resource for checking up on street prices of vehicles.

 

[disneyleslie]

When we bought our Honda Odyssey last March one of the dealerships actually told us the best price is found on the internet - when you know the exact make and model you want emaill all the dealerships in your area and ask them for the internet price - it was a hugh savings - the dealers in the store would not go that low. Just try it out - I'll bet you'll be pleasantly surprised.