I was listening to the radio today and I heard about Chevy’s promotional deal-60 months with 0% APR on their new cars. So what does this mean financially? Well if you can already have enough money to pay the car full, you shouldn’t; instead, you should pay the minimum down payment and take advantage of that 0% APR by getting financed. This is essentially the future value of money concept.

 
Say the car is $30,000 and you take a loan for the full price; You would be paying 500 dollars for 60 months. If you already had $30,000 you would have $29,500 in the second month, after you pay your first installment. Even at a 3% savings account, you can earn 73 dollars that month(assuming you put $29,500 in savings) . The following month you’ll have 29,000 and earn an interest of $72. After you pay off the car you will have made $2212.

 
Now you earn interest off the interest you make too! For instance, the 73 dollars you make the first month goes back into your savings and you make 11 dollars annually; the total savings on your interest-on the gains from previous paragraph- totals…