Questions regarding financing a used Corvette
#21
Racer
Just about any dealer you buy a vette from should be able to finance. It could be a hard road though, as divorces usually drive down credit scores.
If it were me, I would, like others have said, wait until after the divorce, as there probably will be expenses from it. Then look to get into a C5 when things have settled down.
If it were me, I would, like others have said, wait until after the divorce, as there probably will be expenses from it. Then look to get into a C5 when things have settled down.
#22
Racer
You have a point there, I keep forgetting that thats a consideration for most. I'm a tech so I just do any work needed myself and I guess I take it for granted. I shudder when I see some of the customers repair bills at work.
#23
Melting Slicks
Meh, I disagree as well because I think it mostly depends on the car. I financed my Z06 on a 5 year note. The depreciation his been minimal and I'm far from upside down. Even on trade in I would get back more than I owe.
#25
Pro
But as I said earlier, your mileage may vary. At today's rates, a savy person can do very well with all the cheap money sloshing around.
#26
Melting Slicks
- I used them for my 02 C5...I think the rate was higher than mentioned in earlier posts...
FYI - the rate doesn't really change the payment all that much for car in the sub $20k range:
For example - a $15,000 loan for 5 years:
@ 2% - the payment is: $263
@ 6% - the payment is: $290
FYI - the rate doesn't really change the payment all that much for car in the sub $20k range:
For example - a $15,000 loan for 5 years:
@ 2% - the payment is: $263
@ 6% - the payment is: $290
Last edited by Mayor111; 04-24-2017 at 11:10 AM.
#27
Le Mans Master
Really have to disagree here. Lots of people here seem to have financed really nice, really low mileage c5's. Are you saying all of those people made poor financial decisions?
Everything depreciates, just look at the ZR-1s that were going for around 100k 5 or 6 years ago that are now going for 50 to 70. No matter what you do when you finance a car you're losing money in the end. Considering that, I don't think its fair to suggest it would be a poor decision to finance one of these.
End rant...
OP: As others have said, Pen Fed is great, very helpful and friendly. Very good rates - I believe the lowest for a 5 year used loan is 3.49% right now which is what they gave me. I would however agree with some others here in saying it might be best to wait till the divorce is over and done with.
Everything depreciates, just look at the ZR-1s that were going for around 100k 5 or 6 years ago that are now going for 50 to 70. No matter what you do when you finance a car you're losing money in the end. Considering that, I don't think its fair to suggest it would be a poor decision to finance one of these.
End rant...
OP: As others have said, Pen Fed is great, very helpful and friendly. Very good rates - I believe the lowest for a 5 year used loan is 3.49% right now which is what they gave me. I would however agree with some others here in saying it might be best to wait till the divorce is over and done with.
Well, yes, it would be a terrible financial decision.
borrowing money for a depreciating asset is never wise.
#28
As far as financing goes, I also vote lightstream, super easy process, can have the funds within 48 hours, and the title will be free and clear in your name. my APR was under 5% with a credit score in the low 700s.
As far as financing a used car/toy/depreciating asset being a bad idea and shouldn’t be done.. if that were the case I’d never have a car period.. first of all, who can afford to pay cash for a NEW car or truck that now a days start at $35-45k?? 90% of the average buyer I would imagine. And a new car loses value MUCH more quickly than a c5 vette that is at the bottom of the depreciation curve now.
Also, if I could save $15k to buy a used vette, id be better off contributing a lot higher percentage of my income to retirement investing, not to buy a toy. Not to mention the fact that a lot of people live in a very high cost of living area..Where I live a average 3BR 2 ba. TOWNHOUSE is in the $300k range. A single family home 400k or above. Easily. I make a good living. Very Close to 6 figures, and I can tell you right now saving $15k outside of retirement and emergency funds would take 4-5 years.
If I have to dump the car for financial reasons, the demand for clean C5s reasonably priced is pretty high. I would have no problem breaking even on my car, and I’m comfortable with that. to me affording something is being able to comfortably make a healthy down payment, and get a low interest rate to make a monthly payment affordable.
As far as financing a used car/toy/depreciating asset being a bad idea and shouldn’t be done.. if that were the case I’d never have a car period.. first of all, who can afford to pay cash for a NEW car or truck that now a days start at $35-45k?? 90% of the average buyer I would imagine. And a new car loses value MUCH more quickly than a c5 vette that is at the bottom of the depreciation curve now.
Also, if I could save $15k to buy a used vette, id be better off contributing a lot higher percentage of my income to retirement investing, not to buy a toy. Not to mention the fact that a lot of people live in a very high cost of living area..Where I live a average 3BR 2 ba. TOWNHOUSE is in the $300k range. A single family home 400k or above. Easily. I make a good living. Very Close to 6 figures, and I can tell you right now saving $15k outside of retirement and emergency funds would take 4-5 years.
If I have to dump the car for financial reasons, the demand for clean C5s reasonably priced is pretty high. I would have no problem breaking even on my car, and I’m comfortable with that. to me affording something is being able to comfortably make a healthy down payment, and get a low interest rate to make a monthly payment affordable.
#29
Drifting
#30
Pro
...
As far as financing a used car/toy/depreciating asset being a bad idea and shouldn’t be done.. if that were the case I’d never have a car period.. first of all, who can afford to pay cash for a NEW car or truck that now a days start at $35-45k?? 90% of the average buyer I would imagine. And a new car loses value MUCH more quickly than a c5 vette that is at the bottom of the depreciation curve now.
...
As far as financing a used car/toy/depreciating asset being a bad idea and shouldn’t be done.. if that were the case I’d never have a car period.. first of all, who can afford to pay cash for a NEW car or truck that now a days start at $35-45k?? 90% of the average buyer I would imagine. And a new car loses value MUCH more quickly than a c5 vette that is at the bottom of the depreciation curve now.
...
I certainly agree that the average person probably can't stroke a check for $35K to $45K for a new toy. If you've got the dough working for you at a good ROI, then cheap money is cheap money. It's a business decision at that point. But if you can't (as opposed to not wanting to...) stroke a check for a toy, I suggest that priorities be re-evaluated.
I also agree that depreciation isn't the enemy on a used C5, maintenance is. A car payment and repair costs on an older, used vehicle will sour a lot of otherwise, "happy I bought a Corvette" people.
#32
I just financed my 2002 base and my credit union was willing to give me 100% of the loan for 5 years at 3% interest. I didn't end up doing exactly that, but I was pretty surprised by the rate considering the age of the car. I have a 780 credit score and a good history with them, which may have helped.
#34
Apples and oranges - new and used. New, sure, finance away. At least you have a warranty to provide coverage for repairs...
I certainly agree that the average person probably can't stroke a check for $35K to $45K for a new toy. If you've got the dough working for you at a good ROI, then cheap money is cheap money. It's a business decision at that point. But if you can't (as opposed to not wanting to...) stroke a check for a toy, I suggest that priorities be re-evaluated.
I also agree that depreciation isn't the enemy on a used C5, maintenance is. A car payment and repair costs on an older, used vehicle will sour a lot of otherwise, "happy I bought a Corvette" people.
I certainly agree that the average person probably can't stroke a check for $35K to $45K for a new toy. If you've got the dough working for you at a good ROI, then cheap money is cheap money. It's a business decision at that point. But if you can't (as opposed to not wanting to...) stroke a check for a toy, I suggest that priorities be re-evaluated.
I also agree that depreciation isn't the enemy on a used C5, maintenance is. A car payment and repair costs on an older, used vehicle will sour a lot of otherwise, "happy I bought a Corvette" people.
tell me more about good business decisions and priorities..
not trying to be harsh or a smart ***.. but like I said... a lot of areas of the country are much, MUCH more expensive to live in than others. the taxes alone in MD are a killer. idk how some people do it honestly.. I can comfortably make the payment on my car, put a good amount in my retirement funds, and if I have to sell the car, I can break even no problem. I never inherited a bunch of money, didn't have a house or family business given to me like a lot of people I know... so yeah, if i want a toy, and can afford the payment without taking a loss on it if i have to sell it.. im gonna do it every time.
Last edited by ZAZZ; 04-25-2017 at 07:27 AM.
#35
Drifting
#36
Melting Slicks
I'm new to the forum, don't yet own a Corvette but would love to find a C5 or C6. I've owned a couple of Nissan Z's but my wife made me get rid of them and I want a real American made sports car, now that the wife is gone and I'm going through a divorce.
The problem is I don't have all the money right now to pay cash. I've found nice cars, but my bank and credit union won't give me a loan secured by the car on anything older than a 2007. I can get an unsecured personal loan, but the interest rates are high. I can't get a second mortgage because of the divorce.
It's really stupid because a 10+ year old Corvette can be low mileage. It's not like a 10+ year old daily driver Accord or Camry that has 150k on it. Seems like it should be based on mileage and not age, but it's no use talking to them.
Maybe I should just wait til after the divorce and I can save some cash.
I can't be the only one with this problem. Any suggestions?
The problem is I don't have all the money right now to pay cash. I've found nice cars, but my bank and credit union won't give me a loan secured by the car on anything older than a 2007. I can get an unsecured personal loan, but the interest rates are high. I can't get a second mortgage because of the divorce.
It's really stupid because a 10+ year old Corvette can be low mileage. It's not like a 10+ year old daily driver Accord or Camry that has 150k on it. Seems like it should be based on mileage and not age, but it's no use talking to them.
Maybe I should just wait til after the divorce and I can save some cash.
I can't be the only one with this problem. Any suggestions?
For the ones against financing cars, I agree this would be ideal. Paying cash up front for all things purchased is the ideal situation, including your home.
However, is that practical? I guess so, if you were born with the proverbial silver spoon in your mouth. In that case, then yes cash up front for everything is always best.
However, that is not reasonable or doable for 90% of Americans. They don't have 1/2 a million or more in their portfolios and do not make over 240K a year. As my dad used to say,
The middle class have only one asset in life, good credit.
Another saying of my dad was:
Son, always plan on two payments besides the essentials (utilities, food, clothing, and insurance). Those two payments are a car payment and a mortgage payment. Make sure that you can pay both with two weeks take home pay, or you will get into trouble. That, and NO CREDIT CARD DEBT!
My dad was a smart man and I find that he was generally correct!
I will add one thing to the "finance" debate. Never delete all of your savings to pay CASH. Bad idea. You NEVER know when an emergency will pop up.
I highly recommend having at least three months pay in reserve before purchasing any luxury item. Six months is even better.
OK off the finance "SoapBox" now. Let's get back to talking about CORVETTES!
Last edited by bikeriderga; 04-25-2017 at 10:36 AM.
#37
Pro
have to disagree... so financing a used car, based on the chances that my $15k rarely driven garaged 50k mile vette might have some maintenance issues, .. is a BAD idea vs. financing a NEW $65k vette with a warranty is a good idea? my $220 a mo. payment, vs. a $1,000 a month payment with even 0% interest on a car that will lose $20k in value the first 18 mos?
tell me more about good business decisions and priorities..
not trying to be harsh or a smart ***.. but like I said... a lot of areas of the country are much, MUCH more expensive to live in than others. the taxes alone in MD are a killer. idk how some people do it honestly.. I can comfortably make the payment on my car, put a good amount in my retirement funds, and if I have to sell the car, I can break even no problem. I never inherited a bunch of money, didn't have a house or family business given to me like a lot of people I know... so yeah, if i want a toy, and can afford the payment without taking a loss on it if i have to sell it.. im gonna do it every time.
tell me more about good business decisions and priorities..
not trying to be harsh or a smart ***.. but like I said... a lot of areas of the country are much, MUCH more expensive to live in than others. the taxes alone in MD are a killer. idk how some people do it honestly.. I can comfortably make the payment on my car, put a good amount in my retirement funds, and if I have to sell the car, I can break even no problem. I never inherited a bunch of money, didn't have a house or family business given to me like a lot of people I know... so yeah, if i want a toy, and can afford the payment without taking a loss on it if i have to sell it.. im gonna do it every time.
I never said EITHER (financing new or used) was a GOOD idea. The point, beside on the top of your head, is that you only have to worry about one type of "payment" - loan or maintenance - not both. Further, financing a rarely driven toy is an even shittier idea. You can take that quote to the bank and talk about good business decisions...
Please don't take your outlier set of circumstances - I bought something on credit that rarely sees the light of day and may as well be an designer tux that gets worn twice and lives in a closet so it will have a remote chance of ever needing a repair and cast that on an entire population as a whole.
Generally, an older vehicle WILL require maintenance costs and a new vehicle WILL have a warranty and will not. So if you have a note on a 13 plus year old vehicle and have a catastrophic engine failure - and it happens as we have seen in the forums - who ya gonna sell it to in order to get out from under the note? Cause your warranty won't pay for it and your insurance won't either. But the fact that I paid cash (or have the cash to settle invested somewhere) won't leave me in a bind...
Last edited by unlvrebel; 04-25-2017 at 01:09 PM. Reason: add info
#38
Thanks for all the helpful comments! I did try Pentagon Federal and they go by NADA value, not year, which makes a lot more sense. They also have 3.5% on 60 months. I think LightStream does the same with a rate of about 3.0%
I might wait until after the divorce. It's just that we've been separated for 3 years and I'm getting impatient. She wanted me to get rid of 2 sports cars at different times in our marriage, and I did to keep the peace, but when she wanted me to get rid of my Harley, that was the last straw.
One of the reasons I wanted to finance the car and not pay cash was that I wouldn't be using "marital assets" and thought she wouldn't want the car if it came with a note for almost the whole value. I also need to keep cash for the divorce lawyer. But this isn't a legal forum. Guess I need to talk with him before I do anything.
I might wait until after the divorce. It's just that we've been separated for 3 years and I'm getting impatient. She wanted me to get rid of 2 sports cars at different times in our marriage, and I did to keep the peace, but when she wanted me to get rid of my Harley, that was the last straw.
One of the reasons I wanted to finance the car and not pay cash was that I wouldn't be using "marital assets" and thought she wouldn't want the car if it came with a note for almost the whole value. I also need to keep cash for the divorce lawyer. But this isn't a legal forum. Guess I need to talk with him before I do anything.