Originally Posted by GreenIndustryAssociates
For some companies there are very good reasons to finance rather than pay cash. Even a company doing a couple million dollars a year does not necessarily have the capitol sitting in their account to just drop 40k on the truck they need, it is much easier on there wallet to pay the extra annually for interest instead. If your shopping at the right time of year, when new models are coming out, the manufacturers are usually offering 0% on leftovers if you qualify. Yes paying cash, is cheaper than paying interest, but not always. When I have bought new trucks in the past, I always told the salesman I was paying cash when we negotiated a price. Only after a good price was agreed upon would I ask about financing. Then I would tell them I would finance the vehicle with them if they off set the interest percentage.
If you do 2-3 million a year and cant write a 40k check out of operating expenses.... something is terribly wrong.
There is no advantage to financing....unless you dont have the cash.
And 0% is not 0%.