[HamiltonJay]

I think this guy is overstating something that was true even before the 0%. Used cars lose between 1/3 to 1/2 of their retail in the first 2 years of ownership... trade in is nearly always about 1/2 of retail 2 years down the line unless very low mileage and pristine. This happens regardless of 0% or not. Comparing what a dealer will pay you trade in (wholesale) against a sticker price (retail) is a ludicrous comparison to begin with.

I buy houses at anywhere from 25-60% of their retail value, and fix and mark them up to make a nice profit, car dealers do the same thing, only generally with not quite so much of a swing. My brother is a wholesaler, he sells things for as little as 25% of their retail price at times routinely... comparing trade in to retail is insane.

Also, he is blaming glut of 2 year old cars on 0% financing, there has been a glut of 2 year old cars available for years thanks to short term leasing and rental car companies rolling over their fleets every 2-3 years... and guess what cars generally make up most of those fleets? That's right Detroit models.

[Brookhaven]

I think this guy is overstating something that was true even before the 0%. Used cars lose between 1/3 to 1/2 of their retail in the first 2 years of ownership... trade in is nearly always about 1/2 of retail 2 years down the line unless very low mileage and pristine.

What he says makes no sense to me. Either you lose money when you buy the car by paying interest, or you lose money when you sell the car because the initial cost was lower due to 0% financing. So what?

If I had my choice, I would much rather pay less for the car up front and get less when I resell it, than pay more up front just so I could get more when I resell it.