Finance Questions

Archive for June, 2009

Question: 0% finance?

I am wondering why all these american car companies offer 0% for 60 months, and Finance Companies for Honda does not offer the same? I know Honda and Acura Toyota are much better cars, but shouldn't we be able to get that financing even with a foreign car?

Answer: The 0% finance is a fiction. If you check the fine print, you will discover that you have a choice of 0% finance, or a cash rebate. If you do not take the cash rebate, the amount of the rebate is basically a prepaid Finance Charge. The only way to tell for sure what is going on is to get all the details of each deal and compare them with a financial calculator such as an HP-12C.

Schiro Sees Zurich Growing in US, Helped by AIG Staff

Question: Repossession of a Car in NJ?

I recently had my car repossessed by American Honda Finance Corporation and was informed that I must pay the full amount of the car in order to have it returned to me. The company is adamant that NJ has a no-reinstatement law and that eventhough I am willing to pay the past due amount and all costs of repossession, they are saying can not do this (pay the past due amount and any fees associated w/repossession). Is this true and is it worth it to seek legal counsel. I was in contact with the repo company to negotiate a payment and they keep telling me I have to go through the Finance Company that I can't deal with them.----I reposted b/c I wanted to provide more clarity. I am looking for advice. Thanks for the help.

Answer: They are correct. NJ is a no-reinstatement state. Not worth counsel. Cut your losses and buy another car...if you can.

Happy 50th Anniversary American Honda!