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Discussion Starter · #1 ·
Was originally going to purchase vehicle with cash, but wondering if it's good idea to sign up for Mazda financing, receive incentive ($500 month credit for first 2 months), and then completely pay off the loan before interest charges add up.

Any thoughts appreciated, trying to figure out how to take advantage of any discounts/ incentives offered, I'm not eligible for any other incentives.
 

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That's exactly what I'll be doing. I'll let Mazda pay the first two (up to $500 each). I'll make the next two and then pay it off. It's available only on 2015's.

Isn't there $1,250 to $1,500 rebate on the sedan and $1,000 rebate on the hatchback in most regions?
 

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Was originally going to purchase vehicle with cash, but wondering if it's good idea to sign up for Mazda financing, receive incentive ($500 month credit for first 2 months), and then completely pay off the loan before interest charges add up.

Any thoughts appreciated, trying to figure out how to take advantage of any discounts/ incentives offered, I'm not eligible for any other incentives.
I'm not sure, but I think there may be differences state to state. In California, there was no prepayment penalty or minimum interest so I paid off the loan 9 days after buying the car. Saved over $820 to take the incentive.
 

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Discussion Starter · #4 ·
Thank you both for your thoughts. One of the internet sales managers I'm in touch with suggested going this route.
 

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Depending on your financial situation and the rate you got, it might also be worth it to take the full loan. I was able to get 0.9% APR despite not having auto credit history. I could've paid cash, but this lets me build credit history. On top of that, 0.9% interest is practically nothing, so I can take that money and invest instead of giving it all up at once. Something to consider while interest rates are so low.
 

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I didn't get any incentives when I purchased my car back in late 2013 :( I did get a very low interest rate. I forgot what rate I got, it was something like 0.49% or something pretty low. I hate having car payments so I ended up paying off the loan a couple months after getting the car. There were no penalties for paying off early but I think if I dragged it on longer it would help improve my credit score more.
 

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Was originally going to purchase vehicle with cash, but wondering if it's good idea to sign up for Mazda financing, receive incentive ($500 month credit for first 2 months), and then completely pay off the loan before interest charges add up.
That's what I did back in Oct 2014 when I bought mine. It netted me an additional $750 rebate on top of the deal I already made. Because of the few days needed to move $ around and actually pay off the loan, I paid about $2.50 in interest. So $750 - 2.50 = $747.50 net gain, I'd say that's a no-brainer if you have the cash handy to pull it off. :smile2:
 

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there's better ways to improve your credit rating than that. If you're good with your money, buy everything on a credit card and pay it off in full every month.

I've been doing this for years. I don't think they've ever got any interest from me. My credit score is top notch and my card gets me free groceries :)
 

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Question for you experts out there... I got my car earlier this January (I wanted to give a better car payment and wait longer, but there was a somewhat good deal and needed the car at the moment), and I'm planning on hopefully paying it off late next year. I actually was thinking of doing a 3 year plan, whoever, the guys said i might as well do a 4 year plan (incase something happens)... Interest would be the same... and my car payments would not be as much. With that in mind, I pay like 460 a month (got all the warranty/they'll fix my paint if it gets chipped stuff), BUT I'm pretending I'm putting a lot more money... however, I'm not giving/paying with that extra money yet. I'm keeping it as a back-up (you never know, something could happen and I might need the money for my parents). My question is, am I doing ok, by just putting the money aside, pretending it's going to the car payment, but it's actually backup... And once I know I can pay it all at once, I'll use my back-up money (should be about 10 gran lol) and pay it off in one blow...

In conclusion, should I just be paying a lot more than i need to for my car payments? Or should I keep putting that extra money as back-up, then pay it all at once? Am I doing a stupid mistake? Help me please:D
 

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In conclusion, should I just be paying a lot more than i need to for my car payments? Or should I keep putting that extra money as back-up, then pay it all at once? Am I doing a stupid mistake? Help me please:D
This is a completely individual financial assessment... only you can answer that question.
 

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Question for you experts out there... I got my car earlier this January (I wanted to give a better car payment and wait longer, but there was a somewhat good deal and needed the car at the moment), and I'm planning on hopefully paying it off late next year. I actually was thinking of doing a 3 year plan, whoever, the guys said i might as well do a 4 year plan (incase something happens)... Interest would be the same... and my car payments would not be as much. With that in mind, I pay like 460 a month (got all the warranty/they'll fix my paint if it gets chipped stuff), BUT I'm pretending I'm putting a lot more money... however, I'm not giving/paying with that extra money yet. I'm keeping it as a back-up (you never know, something could happen and I might need the money for my parents). My question is, am I doing ok, by just putting the money aside, pretending it's going to the car payment, but it's actually backup... And once I know I can pay it all at once, I'll use my back-up money (should be about 10 gran lol) and pay it off in one blow...

In conclusion, should I just be paying a lot more than i need to for my car payments? Or should I keep putting that extra money as back-up, then pay it all at once? Am I doing a stupid mistake? Help me please:D
Like azbruno said, it's an individual decision. You were referring to an emergency fund that everyone needs to have. No one can predict the future and only you and a trustworthy financial advisor (not a salesman) can come up with a reasonable amount. Once you've reached this amount, extra money goes into paying down debt (18% credit card debt first, then 6% car loan, etc). Don't wait until you can pay it off all at once. It's 0.25% a year you'll earn with that extra $1 in the bank vs X% a year you'll pay on that extra $1 of loan.
 

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I was going to pay in full cash as well, and decided to finance through Mazda to get the $500 financing promo. Only financed $10k and paid it off in full the next week, so I didn't care what rate they gave me (ended up being 3.09%). No early penalties. My credit score didn't budge and saved some $$$.
 

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I got mine financed at the 0.9%, and I put a large chunk down for down payment and the salesman was confused. He was like, you're getting such a low rate, why do you want to put so much down?...I don't want a huge car payment and I'm going to pay it off early no matter what the rate is because I don't want to pay every month for 5 years lol I didn't have that $500 incentive though, I would take full advantage of that. I mean, why not?
 

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Was originally going to purchase vehicle with cash, but wondering if it's good idea to sign up for Mazda financing, receive incentive ($500 month credit for first 2 months), and then completely pay off the loan before interest charges add up.

Any thoughts appreciated, trying to figure out how to take advantage of any discounts/ incentives offered, I'm not eligible for any other incentives.
I just bought my '15 with the same intention. I need to follow up with the finance manager who helped me - both he and the salesman (separately) told me I should let Mazda make the first two payments, then I make one more, and then pay it off. They really emphasized making that third payment… but I don't see any penalties in the paperwork for paying it off early. I wonder if they only get their kickback on the financing if 3 or more payments are made?
 

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I just bought my '15 with the same intention. I need to follow up with the finance manager who helped me - both he and the salesman (separately) told me I should let Mazda make the first two payments, then I make one more, and then pay it off. They really emphasized making that third payment… but I don't see any penalties in the paperwork for paying it off early. I wonder if they only get their kickback on the financing if 3 or more payments are made?
Yes. They get a kickback as long as you keep the loan for 90+ days
 

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Yes. They get a kickback as long as you keep the loan for 90+ days
Thanks! That clears things up.

If I were to pay 90%+ of the loan off in the first month, Mazda would still kick in their $500 share, correct? That would help to minimize the interest I'm paying, but I don't want to jeopardize the first two $500 payments.
 
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