Is it free financing if there is a discount for cash?

Exactly! If I’m not buying gas for the lawnmower, I don’t know how much I’ll need to fill it…and the way traffic is around here, I don’t want to leave an extra 10-20 minutes early for work to accommodate an extra trip back inside for change. It’s nice to not have to deal with the cash vs credit pricing much. :slight_smile:

Triedaq, your situation sounds like nothing other than a lease. Most leases are for 3 years, and you do pay a lesser interest rate than if you had financed a sale for 60 or 72 months. Your deal was to get lower payments (for a shorter period of time) than if you had leased the same vehicle; after that, your situation is just like a lease.

Barkydog, my take (opinion only) is that the cash price was lower because the financing agent (whether the dealer or a financial institution) would be at slight risk of default for the length of the term with the no-interest financing, whereas the lower cash price was offered so the financing agent would assume no risk whatsoever.

@Dakotaboy. It wasn’t a lease. I went back to our financial records. We made large monthly payments over the time period, but at the end of the period, the car was paid off. I had investments that were doing well so I wanted to keep my money there. I haven’t been able to get a deal like that since, so I just pay cash for the three minivans I have purchased since that time. Had this been a lease, at the end of the time period I would have had to surrender the vehicle. I was in error when I said there was an amount due.