azozrail

hi, i was wondering if there is a dealer close to tennessee that does a corvette payment plan on c7 like dealer in NY

reasonable suspicion

Lol

Scott2.0

What is a "Corvette payment plan"?

azozrail

you pay half the payment for 60 months, then after that you either refinance or trade it. its a way to not invest alot of money towards the car.

here the link to the dealer in NY
http://www.vanbortelchevrolet.net/14LagunaBlue

Scott2.0

Interesting. Seems like you'd be way upside down after that 60 months is up. I bet the rate is on the high side.

Matt@VanBortelChevy

Nope not at all! You would have about $3000 if positive equity at the the end of the term allowing a buyer to sell it , trade, or refinance.

reasonable suspicion

So you want to pay 41,500 to rent a corvette for 5 years, instead of buying at 61,500?

airmed2

It may be an option for some buyers, but to say one would have $3000 in positive equity would depend on a lot of factors. What was the original agreed price? What's the value of the vehicle at the conclusion of the term? If someone paid too much at the beginning, they'd never reach $3000. If the market conditions change for this particular vehicle, you could really be in the hole, or conversely, you might have more equity. No one can put an "exact" on a vehicle's value.

zcobra1

Try Pen Fed payment saver loans. Reasonable low interest, with
A ballon at the end. They even do it on used cars from private
parties.

Better than a lease, and cost of money is very competitive.
I got my 2014 Audi for 3 years at 1.24%, not a misprint, 1.24....
Rates are higher now, but still pretty low.
Low or no down, low payments, ballon at the end.

Invest your money instead sticking it into a depreciating asset like a car.

Matt@VanBortelChevy

No renting we are not Hertz, you own the car from Day 1. This plan is designed for someone who is more payment conscious and still have equity in the Corvette at the end of the term.

Matt@VanBortelChevy

Correct, it's a rough estimate. If someone is putting 50,000 miles on it or damages it that could put them in a bad position. But we set up the loans with the customer so that they will be in a positive equity position in most cases.

choppychop

I would like to lease a 2015 ZO6 for 2 years at $350 a month...
Oh... No $$ at signing

Scott2.0

It's really no different though is it? You pay on it for 5 years and at the end you have nothing ($3k hypothetically, big whoop).

Nate@VanBortelChevy

It's much simpler than it seems, and for many it is the best option.

You can't lease a used car. The main benefit to leasing is a lower monthly payment. Plus you can generally get more car for your monthly payment.

There are many people out there that can't afford $700 or $800 a month for a used Grand Sport. But they can afford $400 or $500. It gives people opportunity.

The monthly payment is flexible. For our examples we try to display the lowest monthly payment, with minimal $ down. A lot of our Corvette buyers will choose a slightly higher monthly payment to increase the amount of equity they will have. The bank looks at each deal and will only approve the loan if they feel the customer will be in an equitable position after the term.

This plan works more favorable on 3+ year old Corvettes, where the depreciation rate is much lower.

If you plan to keep the car, and can afford a traditional payment, then this plan may not be for you. If you would like a lower monthly payment or like to trade up to a newer model every few years, this plan is probably best for you.

- Lower monthly payment

- Same interest % as a traditional loan

- The "boss" (wife) may give you a hard time buying a used toy at $700 per month but she surely will like the idea of $400 a month much better. Little does she know you keep transferring $ from your retirement account little by little to pay off the Vette early.

- Maybe you get a yearly bonus, but during the rest of the year you can only afford X amount per month. Come bonus time you pay off a chunk of the car and end up paying the car off after 5 years.

- You own the car, pay more per month, trade it in, sell it, refinance, modify it, do what you want with it, but enjoy having a lower monthly payment.

- Some people actually have what's called investments . These investments might actually be paying you more than the interest rate on a loan ( I know, crazy right?!). Keep your money where it is!

ExoticMotorClub

Anyone have any experiences with purchasing using this plan? Are the rates much higher than a traditional 4-6 year loan?

Nate@VanBortelChevy

I have personally used this plan on my past 3 Corvettes. When I look back at what it cost me to own each Corvette it's dollars per day.

This plan works more in favor for used Corvettes as many models depreciate as little as 2% per year. Pay less + still build equity.

The interest rate is the same whether it is a traditional loan or balloon/Corvette Payment Plan.

reasonable suspicion

Monthly payment driven car loans are stupid, and for people who can't afford the vehicle in the first place.

jimrowe0

Or they are for people that are smart. Why tie up a large some of money when you can borrow at 2-3% interest rates. You can make 6-8% or more investing that money. Depreciation plays a factor, but just because people choose not to pay cash doesn't mean they can afford it.

reasonable suspicion

That's not what I posted. I have seen your argument here many times and it is valid..... but thats not what is being discussed. I said monthly payment driven loans are stupid and a salesmans wet dream. To clarify. ... if you need a 500mo. payment to rent a car because you can't afford a 700mo. payment to buy a car... you aren't paying cash, and you aren't investing the difference. But whatever. The rental agreement in question is stupid to me, but if you are so inclined. .. carry on. There was no discussion on paying cash or investment returns.

Homer3D

I sort of rubs me the wrong way when someone says “build equity” in a car. Unless you keep a car for a seriously long time where it becomes a “classic car”, then maybe it is worth more than the value of it the day you got it. But if someone told me that they can get a 30k (valued) car today and sell it for more 3-4 years later, they are full of fecal matter. Saying you come out with money in your pocket when you end up selling the car, it not building equity. That car did not build equity, it just depreciated slower than the rate of which you paid off the principle balance.