vette buying?
Instructor
Joined: Dec 2005
Posts: 131
Likes: 0
From: Milford New Hampshire
How I Got My Corvette
Bought a $5.00 scratch ticket and won $50,000 Uncle Sam took $12,500 and I took the rest and bought a pristine 2004 Lemans Blue comm. with 6,000 miles I also have to thank my lovely wife for letting me keep all the money! 
Last edited by bobzap; Mar 6, 2006 at 05:58 AM.
Instructor
Joined: Aug 2005
Posts: 242
Likes: 1
From: Tampa, FL
Almost married, both have decent jobs. Financed mine for 30k. My dream car, showed up at her work with keys in hand telling her I bought the vette we looked at. But she has her 06 Saab that she wanted too, no anamocity there.. You only live once, realize your dreams and make them happen at all costs... 
Safety Car
Joined: Apr 2004
Posts: 3,996
Likes: 77
From: Louisville KY
I retired as a High School Adm. with 340 sick days. The Board of Education bought them out. In spring of 03 I ordered my 03 torch red mn6 vette, went to Bowling Green followed it down the line, started it, etc. That month GM gave 0% down and 0% financing charge. So I took them up on it, I put the sick day buy out money in the bank to make some interest and now I make a monthly payment out of the money in the bank to GMAC. Oops forgot also sold my 97 Z-28 mn6. Being 59 when this happend I basically waited 45 years for the oppertunity to own and drive my vette.
Yep I know all you fiinancial planners will tell me I should have invested the money for the future. But since we have a great retirement plan I didn't need to do that.
Yep I know all you fiinancial planners will tell me I should have invested the money for the future. But since we have a great retirement plan I didn't need to do that.
Pro
Joined: Nov 2005
Posts: 605
Likes: 0
Originally Posted by slwhite
From a strictly financial point of view paying cash is probably not a good idea at this time. With car loans available at 4%, you are better off investing that $50,000 and financing the car. With careful investing you should be able to easily exceed a 4% rate of return on your money over the long term. Even a boring CD right now pays about 5%.
- A lot of people are not disciplined enough to invest the money. Then they end up spending the 'car money' and still have payments.
- Unless your investment is tax-free (municipal bonds, t-bills, etc), a single percentage point will be eaten up by taxes. On paper it looks good (invest at 5%, borrow at 4%), in reality you're no better off.
Now the people who got 0% financing have a different story to tell.
On the subject of home equity lines, I wrote a check for half of my car as a bridge until a CD that I have comes due. People will say that's the way to go because you can write off the interest, but if I ask you to give me a dollar and I give you back 28 cents, how is that a good deal? Unless you've got a sweet rate on your line of credit, you're probably better off borrowing the money from a bank, credit union, or one of the on-line lenders.
Thread Starter
Instructor
Joined: Nov 2005
Posts: 102
Likes: 0
From: Puyallup, WA
Originally Posted by N Bawls
Almost married, both have decent jobs. Financed mine for 30k. My dream car, showed up at her work with keys in hand telling her I bought the vette we looked at. But she has her 06 Saab that she wanted too, no anamocity there.. You only live once, realize your dreams and make them happen at all costs...
i like your thinking! i think the same thing everyday and that is my only excuse for the cars i have owned LOL!!
Le Mans Master
Joined: May 2001
Posts: 8,244
Likes: 850
From: Hamilton Square NJ, Ocean City N. J. Key Biscayne Fla.
I was fortunate enough to hit the NJ Lottery back in '01. I could have purchased any car around. But, I bought a Vette mainly because I had been driving one since I was 21 years old. I turned 59 last week.
Race Director
Joined: Aug 2001
Posts: 11,028
Likes: 5
From: Chicago (Naperville) IL
bought my first Vette a year out of college at the age of 23 - financed a 1997 C5 (6000 miles) in 2001 at 10.9% interest rate on a five year loan.
I was lucky to have a paid off 96 WS6 Ram Air T/A with 85000 miles to trade in though (that my parents bought me)
After my first payment went through, my rent check bounced
- a couple of months later, I moved back into my parents house 
(but waz technically crashing at my girlfriends for free most of the time)
Now C5 has been paid off for a couple years and I bought a Jag X-Type for my winter beater
I definately, took a plunge when I bought the C5 when I did - but it waz worth living paycheck to paycheck for a lil bit
I was lucky to have a paid off 96 WS6 Ram Air T/A with 85000 miles to trade in though (that my parents bought me)
After my first payment went through, my rent check bounced
- a couple of months later, I moved back into my parents house (but waz technically crashing at my girlfriends for free most of the time)Now C5 has been paid off for a couple years and I bought a Jag X-Type for my winter beater
I definately, took a plunge when I bought the C5 when I did - but it waz worth living paycheck to paycheck for a lil bit
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Le Mans Master
Joined: Jan 2005
Posts: 5,479
Likes: 13
From: Dallas/Grand Prairie Texas
I financed mine, if I had to do it again though, I'd drive a beater for just a couple years and save up and either buy it outright or have tiny payments. Oh well, live and learn.
Burning Brakes
Joined: Jun 2004
Posts: 1,240
Likes: 2
From: Cedar Rapids Iowa
Originally Posted by Craig Wagner
While I agree somewhat with the above, there are a couple of problems with the logic.
Now the people who got 0% financing have a different story to tell.
On the subject of home equity lines, I wrote a check for half of my car as a bridge until a CD that I have comes due. People will say that's the way to go because you can write off the interest, but if I ask you to give me a dollar and I give you back 28 cents, how is that a good deal? Unless you've got a sweet rate on your line of credit, you're probably better off borrowing the money from a bank, credit union, or one of the on-line lenders.
- A lot of people are not disciplined enough to invest the money. Then they end up spending the 'car money' and still have payments.
- Unless your investment is tax-free (municipal bonds, t-bills, etc), a single percentage point will be eaten up by taxes. On paper it looks good (invest at 5%, borrow at 4%), in reality you're no better off.
Now the people who got 0% financing have a different story to tell.
On the subject of home equity lines, I wrote a check for half of my car as a bridge until a CD that I have comes due. People will say that's the way to go because you can write off the interest, but if I ask you to give me a dollar and I give you back 28 cents, how is that a good deal? Unless you've got a sweet rate on your line of credit, you're probably better off borrowing the money from a bank, credit union, or one of the on-line lenders.
The 5% CD was just an example. More likely it would be invested as a portfolio of stocks and bonds. Even if it was a CD and it was a wash due to taxes, you would still have $50,000 in liquid assetts there for emergency use if ever needed.
Pro
Joined: Mar 2005
Posts: 565
Likes: 13
From: Morris New Jersey
Originally Posted by TWOBUELLS
Working since i was 11 years old , delivered the morning paper, the evening paper and picked up trash. Went to school and fell asleep. The teachers knew that i worked all night and would just leave me alone. Got drafted in late 71 , did my time and did it well. Learned everyting I could , never left a page unturned. What I could not figure out mentaly, I applied muscle too, Whatever I did, I did it well, Now I'm a tired old man , with multible properties and a happy family. I paid cash for my incredible inground pool, for all my Harleys and last , but not least, The most incredible car to ever hit the highways , My C-5. The way i see it , a lot of people did better , a lot of people did worse, I'm just an average All American Joe , With a C-5 SMILE 
Thread Starter
Instructor
Joined: Nov 2005
Posts: 102
Likes: 0
From: Puyallup, WA
Originally Posted by 89L98
I was fortunate enough to hit the NJ Lottery back in '01. I could have purchased any car around. But, I bought a Vette mainly because I had been driving one since I was 21 years old. I turned 59 last week.
awesome! mind helping me get a vette? I just need help paying off negative on trade hahah
anything helps! LOL! 
Le Mans Master
Joined: May 2003
Posts: 6,454
Likes: 3
From: Hells Sister City Phoenix AZ
St. Jude Donor '03
Originally Posted by Craig Wagner
On the subject of home equity lines, I wrote a check for half of my car as a bridge until a CD that I have comes due. People will say that's the way to go because you can write off the interest, but if I ask you to give me a dollar and I give you back 28 cents, how is that a good deal? Unless you've got a sweet rate on your line of credit, you're probably better off borrowing the money from a bank, credit union, or one of the on-line lenders.
Pro
Joined: Nov 2005
Posts: 605
Likes: 0
Originally Posted by slwhite
The 5% CD was just an example. More likely it would be invested as a portfolio of stocks and bonds.
My mortgage broker had tried to convince me two years earlier to max out my home equity line and invest the money because everyone was getting 18% returns and the good times would never end, right? Had I done that I'd be in some nasty financial difficulty right now.
Even if it was a CD and it was a wash due to taxes, you would still have $50,000 in liquid assetts there for emergency use if ever needed.
Burning Brakes
Joined: Nov 2005
Posts: 827
Likes: 1
St. Jude Donor '06
Originally Posted by 89L98
I was fortunate enough to hit the NJ Lottery back in '01. I could have purchased any car around. But, I bought a Vette mainly because I had been driving one since I was 21 years old. I turned 59 last week.
Christ life is good!
That's two lottery winners and both bought Vette's. Guess that answers the question... "if you had anything you wished for......"
Burning Brakes
Joined: Jun 2004
Posts: 1,240
Likes: 2
From: Cedar Rapids Iowa
Originally Posted by Craig Wagner
In which case you'd still probably be better off to pay cash for the car. I'm guessing you're old enough to remember the last recession, when investments across the board went into the toilet?
My mortgage broker had tried to convince me two years earlier to max out my home equity line and invest the money because everyone was getting 18% returns and the good times would never end, right? Had I done that I'd be in some nasty financial difficulty right now.
That's true, and a good point. If buying the car for cash would leave a person with no liquid assets then financing would be a good decision.
My mortgage broker had tried to convince me two years earlier to max out my home equity line and invest the money because everyone was getting 18% returns and the good times would never end, right? Had I done that I'd be in some nasty financial difficulty right now.
That's true, and a good point. If buying the car for cash would leave a person with no liquid assets then financing would be a good decision.
The only investment that is 100% safe is a CD or a government security. If you are requiring 100% safety of principal in your investments, then you are not going to get very far. I will only mention that since about 1925, the stock market has returned an average annual yield of about 11%. That period includes all of those horrible times that you mention. You must be able to take some risk to earn a decent return.
Borrowing money for investment is a stupid idea unless you are a seasoned professional. That is basically what caused the crash of 1929. Your mortgage broker certainly proved his stupidity by recommending that course of action to you.
Last edited by slwhite; Mar 7, 2006 at 08:11 AM.
Burning Brakes
Joined: Jun 2004
Posts: 1,240
Likes: 2
From: Cedar Rapids Iowa
Originally Posted by ROADAPPLE
Cash Is King
Ask your dealer whether he would rather be paid in cash or have you finance with GMAC through him. They will always say financing.
Last edited by slwhite; Mar 7, 2006 at 08:14 AM.
Le Mans Master
Joined: Aug 2004
Posts: 6,723
Likes: 1,088
From: NE OH
St. Jude Donor '09-'10
Wife always wanted Corvette so after paying off mortgage and all other debt and turning 40, bought new 2004 when they were getting rid of them to make way for c6 (got for 36K new). Having no other payments/debt, financed 1/2 of it as they were offering us a 1.9% rate.
Worked for us.
Worked for us.
