re: Best option to finance a vehicle?

Why do you want to tie up your own cash to purchase a depreciating asset when the bank will let you use theirs for 2%? Use the banks money and then go make 20%+ in the market with your money.

I have a college aged kid whom I'm helping buy a car, and I noticed looking at the Bronco Sport that Ford is offering 0% for 36 mos. as of today through the end of the month. Very enticing for a pretty affordable vehicle.

there's lots of wrong and bad advice in this thread.

in many instances, manufacturer financing will be your best bet. the manufacturer wants people to buy their cars, so they need to make it as easy as possible. there aren't any gimmicks or tricks with manufacturer financing; you just need to make sure the dealer isnt playing any games. sometimes, there will be manufacturer rebates that aren't combinable with the cheapest interest rate; just know that ahead of time (info is easily available on manufacturer websites).

zero percent, or low percent (0.9, 1.9) deals are out there. just go to the manufacturers website and research their financing offers. just know the best available rate and, again, make sure the DEALERSHIP isnt playing games. Third party financing will typically be competitive as well, but you certainly won't find zero or anything close to that. third party financier doesn't care if you buy the car or not; they only make money off your loan. Also, in the dealership's eyes, third party financing is as good as paying cash, since they don't get a cut on any of the interest.

Certain hot selling models (eg. kia telluride) don't need manufacturer assistance to get sold, so they'll typically be excluded from special interest rate offers. these are the instances where it typically makes sense to obtain third party financing. Similarly, it's the older models (eg. outgoing 2021 jeep grand cherokee), or slower sellers that get a ton of support from the manufacturer. for instance, 72 months at zero % on a 2021 jeep GC.

additionally, and it's already been stated.... do not negotiate with the dealer based on payment. negotiate on selling price only(inclusive of tall taxes and fees).

if you go in without doing your due diligence up front, you're more likely to get fleeced.

yes, the dealer makes extra money if you take their (or manufacturer) loan at 1.9%, but who cares, it's still cheap money. Just crunch the numbers and make sure no additional inception fees.

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Why would you not just pay cash if you can instead of financing a personal vehicle that is a depreciating asset?

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That car is going to depreciate no matter how you pay for it. Now, would you rather have your money sitting in a car that's losing value, instead of earning a return in the market, or would you rather have the banks money in that car?

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and a big rule is don't finance longer than 5 years

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Throw this rule in the toilet if the rate is low enough. Especially with record high inflation.

are you 15 years old?

Supply and demand is a REAL thing right now. Negotiating in this day is a futile effort. They will tell you to walk before you walk because some other sucker is just waiting in line to walk in behind you and overpay.