Beware the Fine Print: "Up to $150 Onboard Credit on select NCL Sailing"

[falken]

but a $20K car will run you $333.40 a month on 0% APR, which is not 0 interest!

 

I think you don't understand what interest is....

If you borrow $20,000 and repay $20,000 you paid no interest (0%).

 

If you have a 5% APR, 5 year loan on the car your payments would be $377.42/mo and you would repay a total of $22,645 for your $20,000 car. The interest you paid was $2,645.

[garycarla]

This is scary. The ads are 100% correct. They only want you to pay for the car. No interest is being charged. You can give them $20,000 today, or pay it in installments. You still give them ONLY $20,000. Not a penny more.

 

I don't even want to get into the perception that you are getting all those upgrades because you pay cash.

[billie5]

MACOP,

$333.40 a month for 5 years will exactly repay a $20K loan, and that is indeed 0 interest. All the payments are return of principal -- no interest whatsoever.

 

Bill

[Sparkylok6]

Honestly, I can't believe that anyone has to have this conversation. Obviously most of us know how it works.

 

As far as paying cash and getting "free" upgrades....NOTHING IN LIFE IS FREE!!! Car salesman are taught how to make something look wonderful and that they are giving you the world.

 

Enough said on this subject.....beating ones head against a wall probably has more of an entertainment value.

[AFT_LOVER]

We pay cash for every new Hyundai SUV we buy, getting 5 year free maintenance & a car with all the perks (deluxe package which they sell for $2K). 3 cars that never had a problem. Great dealership, now another is giving 10 years 200,000 transy warranty with 10 years 120,000 warranty which we may go check if they still have it is 2012 when our warranty is up.

 

Honestly, I can't believe that anyone has to have this conversation. Obviously most of us know how it works.

 

As far as paying cash and getting "free" upgrades....NOTHING IN LIFE IS FREE!!! Car salesman are taught how to make something look wonderful and that they are giving you the world.

 

Enough said on this subject.....beating ones head against a wall probably has more of an entertainment value.

[falken]

We pay cash for every new Hyundai SUV we buy, getting 5 year free maintenance & a car with all the perks (deluxe package which they sell for $2K). 3 cars that never had a problem. Great dealership, now another is giving 10 years 200,000 transy warranty with 10 years 120,000 warranty which we may go check if they still have it is 2012 when our warranty is up.

 

Well, that is the standard Hynudai warranty, so no extra there (per the website). Do you pay sticker price for the car also? If so, I bet they do throw in a few extras for you, because you paid thousands more than you should have.

 

The dealership does not care if you pay cash or finance the purchase, they get the same amount of money either way. The bank does the financing, the dealership gets paid in full for the car right away.

 

If you can not invest your money and earn a higher rate of return than you pay for your auto loan, then paying cash is a great idea. Don't think you are getting a better deal though than you could have if you were not paying with cash.

 

Edit: warranty | If you meant 10 year 120,000 mile bumper to bumper warranty, then they are selling you an extended warranty. There is no such thing as free, if they are "giving" you a warranty you could negotiate getting what that warranty is costing them off the price of the car instead.

[orangeh3]

And I can use the 0%apr to purchase my new car, make payments for 60 months and keep the $20,000, in a place that pays great interest to me and make some money...:rolleyes: :eek: ;)

[garycarla]

...Enough said on this subject.....beating ones head against a wall probably has more of an entertainment value.

 

My wife was laughing as I beat my head against the wall. Was that you on the other side banging your head?

[falken]

But as a side note, most 0% offers are not "free" anyway. You can normally take the 0% -or- a cash rebate. If you take the 0% instead of the $1500 manufacture rebate you are really paying $1500 in interest.

[orangeh3]

But as a side note, most 0% offers are not "free" anyway. You can normally take the 0% -or- a cash rebate. If you take the 0% instead of the $1500 manufacture rebate you are really paying $1500 in interest.

 

Not to say you have to qualify for it. :rolleyes:

[mbisson]

Just turned on the 'puter, saw this thread at the top & I opened it to catch up & now I'm laughing like a complete idiot (which some will say is entirely appropriate).

 

What a good start to a day!

[smeyer418]

yes only highly qualified people with scores in excess of 1400 qualify but I forget if that is your college boards or your FICO scoring...in other words you won't qualify for it anyway.

[TonyFred]

I always pay cash for my Big Macs and they throw in extra sauce.

[tammlynn]

I recently booked an NCL cruise on the Majesty to Bermuda with an online agency that advertised "Up to $150 Onboard Credit on select Norwegian Cruise Line Sailings".

 

This is very strange but I got another exact copy of my invoice today except this time with a $50 onboard credit written in the comments. The agent with the online booking company had said I wasn't entitled to this after she said she called NCL! Well not sure what the confusion was but no longer feel misled. Thank you my online booking agency and thank you NCL!

[CC Help Michell]

To the OP, glad it worked out to your satisfaction. :)

 

For the rest of this thread... well, I got to the post saying "0% APR isn't 0% interest!" and had to go find a tissue I was laughing so hard. Then it suddenly occurred to me.... maybe that WASN'T a joke post? :eek:

 

Someone reassure me. This IS a joke, right? No adult, functioning, income-earning, money-spending, and (oh dear lord) VOTING citizen could actually think this is how financial transactions work? Right?

[mbisson]

Someone reassure me. This IS a joke, right? No adult, functioning, income-earning, money-spending, and (oh dear lord) VOTING citizen could actually think this is how financial transactions work? Right?

 

I hope someone can, but I'm afraid I can't! Kinda scary isn't it? (and you left out gun toting)

 

But I will admit--there are many things I just don't understand either

[isles1]

Do you pay sticker price for the car also?

 

Are there any King of the Hill fans out there? LOL. There was a really funny episode last week about how Hank Hill dealt with the same "great dealership" for the last 25 years and paid the sticker price, not a penny more, everytime he bought a car. :D

[isles1]

But as a side note, most 0% offers are not "free" anyway. You can normally take the 0% -or- a cash rebate. If you take the 0% instead of the $1500 manufacture rebate you are really paying $1500 in interest.

True, but that assumes you could otherwise finance the "post-MFR rebate purchase price" at 0% or pay in full with cash.

 

I am not sure what the actual interest rate breaks down to when you take the 0% APR instead of the $1,500, but paying the additional $1500 over the course of a 60-month loan works out to only an additional $25 a month. Discount those additional payments to present value and that's an all out bargain ;)

[garycarla]

But as a side note, most 0% offers are not "free" anyway. You can normally take the 0% -or- a cash rebate. If you take the 0% instead of the $1500 manufacture rebate you are really paying $1500 in interest.

 

It is all fairly simple math.

 

$20,000 over 5 years at 2.9% interest would add $1,509 in interest to the cost. There is some more involved math that is often referred to as "time value of money",but that is a bit more complex and ASSUMES certain investment outcomes.

 

After reading all this stuff, I better understand why people have lost their house because the signed up for a mortgage they could not afford. Based on many reports, even with NO increase in interest, they still can not afford it.

[billie5]

Come on, guys, there is a distinct arrogance creeping into this thread. People make mistakes, people misread, English is not the first language for some contributors, I am sure there are other reasons for confusion on some issues. Perhaps the contributor expected the offer was for no payments the first year -- not unheard of with loans.

 

And there are so many tragic reasons for mortgagees not being able to meet payments during an economic downturn that one really should not make light of it.

 

Some years ago the governor of Virginia, reacting to increasingly bad economic news, declared that a previously announced 2% raise for university faculty would be rescinded. Turned out he could reduce salaries, but could not rescind already approved raises, so he then announced that the 2% raise would be awarded, but then there would be a 2% reduction in salaries. Wonder if I should laugh at everyone who doesn't see what is wrong with the governor's mathematics.

 

Bill

[falken]

\ Turned out he could reduce salaries, but could not rescind already approved raises, so he then announced that the 2% raise would be awarded, but then there would be a 2% reduction in salaries. Wonder if I should laugh at everyone who doesn't see what is wrong with the governor's mathematics.

 

Nothing wrong with them at all. In fact, he saved even more money! :)

[garycarla]

I am sorry. I can not defend the OP, or what thousands of Americans now find themselves in the middle of, just like millions before them.

 

You can not get something for nothing, or for less than what is costs. Too many people are buying a car for $xxx a month, forgetting that it really costs $40,000. Or a tv for $xxx a month, with the though that it costs less if you have those little payments. I get so annoyed at a salesperson that says, or course you can afford $xxx per month.

 

We can NOT afford it. People have bought houses that they can not afford, even with NO interest rate increases.

 

We have people that think zero % APR means no payments, or something like that.

 

It is sad. It is scary. And somebody has to pay for the stupid decisions of others.

 

 

Sorry, but when I was deep in debt, the government did not bail me out and it bothers me that I will help bail out current idiots.

 

Whew!

[goose30]

The good Gov only saved more if he took the 2% reduction in salary before he gave the 2% raise. I don't think that was said. It sounded like he gave the raise and then took the reduction.

 

Well any way we should be talkin about cruisen.

 

Happy Crusen!!!

[mbisson]

 

Well any way we should be talkin about cruisen.

 

Happy Crusen!!!

 

 

Correct---If they made my cruise 2% longer and then decided to reduce that lengthened amount by 2%, I'll probably get wet when I disembark! (I couldn't help myself) ;)

[tchix]

The good Gov only saved more if he took the 2% reduction in salary before he gave the 2% raise. I don't think that was said. It sounded like he gave the raise and then took the reduction.

 

Um, no. Say a professor was making $100 before the raise. If they canceled the raise, she would continue to make $100.

 

If they gave her a 2% raise, she would then make $102.

 

If the governor then takes away 2% of her salary, she only makes $99.96 (.98 x current salary of $102), less than the $100 she started out making and saving the governor an extra 4 cents...., or .04% of the original salary...

 

To bring it back to cruising, it reminds me of the travel agent yesterday who tried to tell me that 5% off the fare for the first cruise passenger and 5% off the fare for the second constituted 10% off the total fare... :p