Buying a new car, $0 down and 0%....

[BAM6I4]

So I'm thinking about buying a new car and not putting ANY money down. Not because I can't, but because I don't see the point. I can get 0% for 60months and if I purchase the GAP coverage I should have no issues in case of an accident correct?

My thoughts are this, I could put the $5000+ I was going to use as a down payment towards something else and if I ever want to sell it I may be under water but I can use the money at that time.

GAP coverage covers the entire difference between whatever insurance pays (less deductible) and the loan balance, correct? If that's the case and I have interest free financing it actually makes MORE sense NOT to put any money down right? Just in case the car is ever totalled I wouldn't 'lose' out on my down payment since GAP coverage would take care of it.

Just want to make sure my thinking is sound. I've always put down as much money as possible when buying a car but now this doesn't seem to make sense. Thanks

[deagle]

generally , if a deal is too good to be true, it sometimes is

sometimes promo's like that are for ppl w/ stellar or near perfect credit scores/background checks, etc...

check out for more tips :

http://www.carbuyingtips.com/finance.htm

[Knight2000]

Your information regarding GAP is correct. Just make sure you buy it from your dealer and NOT your insurance company. The insurance company's GAP only protects the insurance company, not your finance contract.

[gsprobe]

You got it.


Put 0 down, keep your money, and carry gap. Imagine if you put that 5 grand down, then the car got stolen in 6 months. Kiss your $5,000 goodbye.

[bkn05]

I agree with checking on the promo. I worked for a car dealer for some time and these promos were disputed all the time. It should be listed in fine print but most of time you have to have tier one credit or higher to get those terms and a lot of times dealer financing does not have the same history as your personal credit report as they use "different venues". Other then lowering you monthly payment it seems like your pros here outweigh your cons. Good luck either way!