Financing a c5
Drifting
Joined: Nov 2016
Posts: 1,820
Likes: 411
From: Somewhere in the middle of Kansas
Lots of good advice on here and for most a car loan is often a necessary evil. I applaud any that can manage to save up the cash to buy but I also understand if you have to borrow. My rule of thumb is this, once you find some financing, take the loan out for no longer than three years. If you have to take it out for longer, you can't afford it. If you live by that rule, you will never get upside down. Buy used private party and sell private party and keep the premium of doing business with stealerships out of the equation. There are lots of financing options out there, with some of the best online. Spend a half hour searching online and you will find a ton of options. Good luck!
Racer
Joined: May 2016
Posts: 472
Likes: 83
From: Lafayette LA
PenFed has been mentioned a few times in here with positive praise.
But, beware, I spent 6 weeks dealing with them, they were absolutely terrible. They screwed up every step of the way causing me to cancel one trip to get the car, and causing the seller a lot of grief, I'd never use them again.
Try Lightstream, bought my truck with them, in 24 hours they had more paperwork done than PenFed did in a month.
But, beware, I spent 6 weeks dealing with them, they were absolutely terrible. They screwed up every step of the way causing me to cancel one trip to get the car, and causing the seller a lot of grief, I'd never use them again.
Try Lightstream, bought my truck with them, in 24 hours they had more paperwork done than PenFed did in a month.
I got Lightstream after Merkle mentioned it to me. I was looking for an '02-04 Z06 and my credit union wouldn't give me more than $15,500 for the vehicle I wanted based on NADA value... Not a single dealer would drop their price even remotely close to NADA/KBB, so I sought out a private sale.
Lightstream just had me enter what car it was for, and I had to basically sign saying that that's what I was using the money for. Picked a date to deposit the money and it was thrown into my own account... And they even state to NOT put the title in their name. So I didn't have to deal with state to state transfers and registering, virtually zero paperwork. It was a joke how easy it was.
For the record I have credit in the 800s and financed 15K on a 20K car @ about 4%. Normally I'd want 1-2% but the fact that it was for a 15 year old car brought that percentage up a little.
Good luck finding your car
Safety Car
Joined: Feb 2013
Posts: 4,346
Likes: 755
From: Greensboro Nc
I used gateway one for my car about 5 years ago roughly. Got an awesome rate and customer service was great.
It didn't make sense for me to drain my bank account with the rate I got, I made a lot more in interest during the time I was paying on it than I paid to the bank.
Lenders are out there, assuming you're honest with yourself about your ability to pay the loan, it's a great option.
It didn't make sense for me to drain my bank account with the rate I got, I made a lot more in interest during the time I was paying on it than I paid to the bank.
Lenders are out there, assuming you're honest with yourself about your ability to pay the loan, it's a great option.
Race Director
Joined: Apr 2017
Posts: 10,247
Likes: 888
From: Hickory NC
2025 C5 of the Year Finalist - Modified
2022 C5 of the Year Finalist - Modified
2020 C5 of the Year Finalist - Modified
St. Jude Donor '17 thru '26
Agree. Paying cash is great - if you can afford to. But not everyone can and financing is not, in and of itself, a bad thing.
Good luck on finding a good, reasonably priced loan - and enjoy your Corvette!
Good luck on finding a good, reasonably priced loan - and enjoy your Corvette!
Banned Scam/Spammer
Joined: Sep 2016
Posts: 4,004
Likes: 3,929
From: Philadelphia PA (Birthplace of the USA, UNESCO World Heritage City)
You shouldn't finance a car, let alone a sports car/toy. Take care of your other more important needs first...emergency fund, retirement, house/better house, etc.
Last edited by ArmchairArchitect; Jul 3, 2017 at 01:58 PM.
Racer
Joined: May 2016
Posts: 472
Likes: 83
From: Lafayette LA
Jesus christ, the amount of people wahhhhhhhhhhhhhhhmbulancing about financing a car is ridiculous. Do you have 20K in cash? You don't? Oh well most people don't. Do you have a daily driver that's paid for and a mortgage that's well within your means and just so HAPPEN to be able to take on a smaller car payment than usual that you're fully capable of handing financially? Do you know how to adult? Does your mommy have power of attorney over how you spend your money?
Are all of you people the OP's mother? Are you the FDA telling people what's bad for them? God damn. Keep your replies on topic and quit acting like the Corvette Forum Police.
Are all of you people the OP's mother? Are you the FDA telling people what's bad for them? God damn. Keep your replies on topic and quit acting like the Corvette Forum Police.
Melting Slicks
Joined: Jul 2010
Posts: 2,793
Likes: 333
From: Leesburg Fl
2018 C5 of Year Finalist
St. Jude Donor '14,'18
I used to be the finance manager for car dealers. I wouldn't pay cash for an item that depreciates. By financing, I am getting the car at today's price and paying for it with future dollars that have depreciated due to inflation. I would much rather keep cash and have payments. It's nothing new to use OPM, other people's money, to make purchases. What if the OP waited to save up to pay cash and died before he could have what he wanted???
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Racer
Joined: Nov 2012
Posts: 382
Likes: 96
From: Sunnyvale Texas
It's an old argument whether to finance or pay cash. I've only recently been able to pay cash for my cars and I will never go back to financing. I "could" be driving a new F150 but that one in the driveway with no payments sure is sweet. So is the C5 that's all mine. Sure is easy to unload it if I need to, don't have to mess with a bank. If I can't drive it over the winter it's nice to not have to keep full coverage insurance on it which is required by the real owners, the bank, if it's financed.
If you had a car that was paid for would you take a loan on it to get money to invest? Also, would you put a mortgage on a paid off house and use the money to invest? I wouldn't. But that's just me.
If your young and can't pay cash then why not finance a C5. If you gotta finance something it may as well be a fun car. Just don't get into that nasty circle of always being upside down, always trading up and carrying over the negative equity. Good luck.
If you had a car that was paid for would you take a loan on it to get money to invest? Also, would you put a mortgage on a paid off house and use the money to invest? I wouldn't. But that's just me.
If your young and can't pay cash then why not finance a C5. If you gotta finance something it may as well be a fun car. Just don't get into that nasty circle of always being upside down, always trading up and carrying over the negative equity. Good luck.
Racer
Joined: Jul 2013
Posts: 485
Likes: 90
From: '97 Coupe & '07 Coupe in Allentown, PA
I used to be the finance manager for car dealers. I wouldn't pay cash for an item that depreciates. By financing, I am getting the car at today's price and paying for it with future dollars that have depreciated due to inflation. I would much rather keep cash and have payments. It's nothing new to use OPM, other people's money, to make purchases. What if the OP waited to save up to pay cash and died before he could have what he wanted???
I don't care if the OP borrows or pays cash, but this is just bad logic.Yes, paying cash for an item that depreciates is a bad idea, but borrowing for an item that depreciates is not better.
Yes, by financing, you get today's price. But paying for it in future dollars doesn't gain you much. Inflation has been ~2% in recent history and you discount those payments over a 36 month used car loan. Your finance rate is probably higher than the inflation rate.
Why would I keep cash earning 0-1% in money market or CDs and pay 2-5% on borrowed money?
Yes, using other people's money is great, but only if I can earn a rate of return higher than the rate I borrow.
Take lending and time value of money advice from a CPA, not a dealership finance manager.
Banned Scam/Spammer
Joined: Sep 2016
Posts: 4,004
Likes: 3,929
From: Philadelphia PA (Birthplace of the USA, UNESCO World Heritage City)
I don't care if the OP borrows or pays cash, but this is just bad logic.Yes, paying cash for an item that depreciates is a bad idea, but borrowing for an item that depreciates is not better.
Yes, by financing, you get today's price. But paying for it in future dollars doesn't gain you much. Inflation has been ~2% in recent history and you discount those payments over a 36 month used car loan. Your finance rate is probably higher than the inflation rate.
Why would I keep cash earning 0-1% in money market or CDs and pay 2-5% on borrowed money?
Yes, using other people's money is great, but only if I can earn a rate of return higher than the rate I borrow.
Take lending and time value of money advice from a CPA, not a dealership finance manager.
The point is, if you have to borrow money for a toy, it means you don't have enough money saved for higher priority items such as an emergency fund (6 month minimum of all living expenses, ideally 1 year+) or enough retirement savings. Do what you want, but realize you are making sacrifices elsewhere if you borrow money for a car.
As a simple rule of thumb, if you want to be financially successful, the only things you should borrow money for are things that create value in your life...ie. house (appreciating asset), school (future higher income), business loan, etc.
Last edited by ArmchairArchitect; Jul 6, 2017 at 10:02 AM.
Banned Scam/Spammer
Joined: May 2007
Posts: 15,685
Likes: 1,330
From: Machineguns, because I don’t compromise
If you are loaning money to go to college you should be driving ****. Forget popping for a Corvette.
My sister is almost 30 with a masters degree and is using it but to this day has student debt. College kids are supposed to scrape by not loan for a nice car. C5 Corvettes are money pits if you want to daily drive it.
My sister is almost 30 with a masters degree and is using it but to this day has student debt. College kids are supposed to scrape by not loan for a nice car. C5 Corvettes are money pits if you want to daily drive it.
Le Mans Master
Joined: May 2009
Posts: 5,093
Likes: 757
From: WV
I disagree with people saying you shouldn't get it if you have to borrow money. I for one borrowed 15k for my 03 Z06 back in 2009. Now I do like to pay cash if I can, but I couldn't at the time. I did pay cash for my 1960 Corvette back in 2014. Then I had enough saved in 2015 to either pay off my house or buy my 1966 Corvette. I paid my house off and borrowed the money for the car because I would rather lose the car than my house if the world fell apart. I also have made a 15% contribution to my 401k since I was 26 years old and now 39. I think the key is don't strap yourself with a payment and always leave enough room to save every month. Good luck.
Advanced
Joined: Dec 2016
Posts: 79
Likes: 3
Hello all,
I've frequented this forum to learn as I've been on the hunt for a c5. Now I found the one and was wondering if anyone here has any good ideas. The credit union I bought my truck through won't touch vehicles over 10 years old. I can always get a personal loan, but they come with a higher rate.
Any help is appreciated,
Mike
I've frequented this forum to learn as I've been on the hunt for a c5. Now I found the one and was wondering if anyone here has any good ideas. The credit union I bought my truck through won't touch vehicles over 10 years old. I can always get a personal loan, but they come with a higher rate.
Any help is appreciated,
Mike
Pro
Joined: Aug 2005
Posts: 503
Likes: 50
From: Bradenton, FL
When did adult become an infinitive verb?? 
Chiming in with 2 cents... Finance, don't finance. To each their own... However, when financing an old vehicle you end up with a double whammy - car payments AND repair bills. At least with a new or newer vehicle, their is a warranty to cover the repairs. And heaven forbid you end up with a catastrophic issue... Now you have no car with a ridiculous repair bill and payments...
Chiming in with 2 cents... Finance, don't finance. To each their own... However, when financing an old vehicle you end up with a double whammy - car payments AND repair bills. At least with a new or newer vehicle, their is a warranty to cover the repairs. And heaven forbid you end up with a catastrophic issue... Now you have no car with a ridiculous repair bill and payments...
Racer
Joined: May 2016
Posts: 472
Likes: 83
From: Lafayette LA
The difference here in the fact that people are saying you're financing an item that depreciates.... The value of the C5 and especially Z06s is about as rock bottom as it's going to get. You can't find a better bang for the buck in a car right now. Sure, the prices will depreciate even further, but I could take my Z06 that I bought for $20,000 and sell it for pretty close to what I paid for it due to the fact that it's likely not going to plummet in price much more.
Safety Car
Joined: Jan 2012
Posts: 3,956
Likes: 520
From: Da U.P.
Sometimes the fvcked up logic on this forum blows my mind. We're talking about a sub-20k car here folks, he's not exactly going to bury himself with it. And they're not all turds either. Too many people here afraid to get their hands dirty fixing their own shjt. USAA wanted to charge me 7 or 8% interest on a 2007 GMC Envoy Denali last year and my credit is in the 770s. Ent hooked me up, give them a look if you have one local. I think I got 4%. I don't understand why the banks are so averse to financing something that's not brand spanking new.
Melting Slicks
Joined: Sep 2012
Posts: 2,222
Likes: 798
From: Fort Myers Beach Florida
I have owned over 160 cars and trucks including eight Corvettes. Once back in 1984 I got a car loan just to try it. I didn't like making monthly payments. On the one payment plan it only hurts once when you write the check. With a loan it hurts every month and someone else is making money you spend on interest. Years ago it was justified because interest was tax deductible. Living on credit was never on my things to do list.