Financing?
Burning Brakes
Joined: Oct 2012
Posts: 933
Likes: 3
From: Dallas, TX
I for one can pay cash, but if I can finance for 60 months at 1.75% or less, I most likely will.
Instructor
Joined: Jul 2013
Posts: 110
Likes: 0
From: Leesburg VA
It is a better financial decision to finance with rates this low. My investments make a ton more; why would I pull from those resources to pay cash? I would likely make 12-16k less over those 72 months vice paying 2k in interest. No brainer for me.
Instructor
Joined: Jul 2013
Posts: 110
Likes: 0
From: Leesburg VA
Burning Brakes
Joined: Oct 2012
Posts: 933
Likes: 3
From: Dallas, TX
Haha, I don't expect that my investments will do quite that well, but yeah, even with my conservative investment strategy, a loan at notably less than 2% is free money. Hell, anyone can make 2% unless the economy tanks again (not out of the question, heh).
Racer
Joined: Aug 2013
Posts: 432
Likes: 26
From: Trapped near the inter circle of fault OHIO
St. Jude Donor '13-'14-'15-'16
Melting Slicks
Joined: May 2006
Posts: 2,936
Likes: 260
From: Westchester County New York
The fed fund rate at almost zero and QE increasing the money supply is fueling this...please explain how a bad current return on CD's is "paying" for the "free"money???
Maybe Barnake should be reigned in don't you think???
At these rates it almost doesn't pay to lease...just borrow the money on a long term loan and the payments should almost be the same but you own the car...
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Burning Brakes
Joined: Apr 2013
Posts: 837
Likes: 0
??????
The fed fund rate at almost zero and QE increasing the money supply is fueling this...please explain how a bad current return on CD's is "paying" for the "free"money???
Maybe Barnake should be reigned in don't you think???
At these rates it almost doesn't pay to lease...just borrow the money on a long term loan and the payments should almost be the same but you own the car...
The fed fund rate at almost zero and QE increasing the money supply is fueling this...please explain how a bad current return on CD's is "paying" for the "free"money???
Maybe Barnake should be reigned in don't you think???
At these rates it almost doesn't pay to lease...just borrow the money on a long term loan and the payments should almost be the same but you own the car...
You and I agree with the others here though, if you can get money at sub-3% and the market rate of return is something like 5% (historically higher) - then financing makes sense.
This thread is awesome as I hadn't even considered a credit union; I think I'm going to look into going through penfed.
Instructor
Joined: Jun 2013
Posts: 133
Likes: 4
Drifting
Joined: Sep 2013
Posts: 1,259
Likes: 24
No question the "winners" of this low interest rate, "QE" environment are younger, securely employed, folks. As long as they don't over extend themselves, more power to them. Am I envious in some respects? Yep! But I don't hold it against those positioned, and smart enough, to responsibly take advantage of the abnormally.
Enough of this...when will a performance variant, paddle shifter (or equivalent) C7 be available for this oldster? Please Chevy, do before I need another (aortic) valve job!
Racer
Joined: Aug 2013
Posts: 400
Likes: 1
The hassle of monthly payments, capital gain taxes on the investment coupled with the particular investment being at an all time HIGH - makes more sense to bail now than possibly having an additional $30,000 in 6 years!
When you make 6 figures - who cares about financing?
Le Mans Master
Joined: Jan 2000
Posts: 5,029
Likes: 128
From: Cols. Ohio
My credit union is at 2.34% for 60 months. Plus as long as I complete my paper work by the end of October they will make my first payment as a Birthday gift since my birthday was in August. Works for me since I'm going to pay it off in Jan. 2014. Just don't want the tax liability on 2013 taxes.
Safety Car
Joined: Feb 2011
Posts: 4,205
Likes: 21
From: Arlington VA
Thats what PenFed offered me.
Even if I had the cash in the bank, I'd still take that loan without blinking. My cash is for emergencies and a pure safety net. I'll gladly make payments on the car, as if I ever need to get rid of it.. I can do so easily and still have my cash in the bank.
Even if I had the cash in the bank, I'd still take that loan without blinking. My cash is for emergencies and a pure safety net. I'll gladly make payments on the car, as if I ever need to get rid of it.. I can do so easily and still have my cash in the bank.
Instructor
Joined: Jan 2013
Posts: 153
Likes: 74
Thats what PenFed offered me.
Even if I had the cash in the bank, I'd still take that loan without blinking. My cash is for emergencies and a pure safety net. I'll gladly make payments on the car, as if I ever need to get rid of it.. I can do so easily and still have my cash in the bank.
Even if I had the cash in the bank, I'd still take that loan without blinking. My cash is for emergencies and a pure safety net. I'll gladly make payments on the car, as if I ever need to get rid of it.. I can do so easily and still have my cash in the bank.
I could pay for mine, too.....but when you are making much more on your investments and don't have to pay 35% tax on money coming out of an IRA, it just makes good financial sense to make those car payments!
Thread Starter
Instructor
Joined: Oct 2004
Posts: 207
Likes: 0
From: Houston TX
My credit union offered me 1.89% for 66 months. When I picked up my car yesterday, the dealer got me 1.65% for 72 months at BB&T bank!
I could pay for mine, too.....but when you are making much more on your investments and don't have to pay 35% tax on money coming out of an IRA, it just makes good financial sense to make those car payments!
I could pay for mine, too.....but when you are making much more on your investments and don't have to pay 35% tax on money coming out of an IRA, it just makes good financial sense to make those car payments!
the dealer i'm working with is offering 2.99 right now and i know for a fact i can get better. My car is done and ready to get out to me but im trying not to let my emotions get in the way of hurrying up with financing.
I'm in Houston so if any of you local guys have recommendations on good credit unions here in town, let me know!
Burning Brakes
Joined: Jan 2005
Posts: 1,055
Likes: 24
From: Cary NC
I bought my car yesterday, even though it is still flipflopping between Bayed and Hold as part of the Nashville Shuffle. I wanted to take advantage of the $1000 incentive voucher for September.
I told the financing manager at the dealership that PenFed gave me 1.99% for 60 months (top of the line credit score). He immediately gave me 1.84% for 60 through their system. He was willing to do as little as $5K down, but I made it $20K down to lower the overall debt load.
I told the financing manager at the dealership that PenFed gave me 1.99% for 60 months (top of the line credit score). He immediately gave me 1.84% for 60 through their system. He was willing to do as little as $5K down, but I made it $20K down to lower the overall debt load.
Thread Starter
Instructor
Joined: Oct 2004
Posts: 207
Likes: 0
From: Houston TX
I bought my car yesterday, even though it is still flipflopping between Bayed and Hold as part of the Nashville Shuffle. I wanted to take advantage of the $1000 incentive voucher for September.
I told the financing manager at the dealership that PenFed gave me 1.99% for 60 months (top of the line credit score). He immediately gave me 1.84% for 60 through their system. He was willing to do as little as $5K down, but I made it $20K down to lower the overall debt load.
I told the financing manager at the dealership that PenFed gave me 1.99% for 60 months (top of the line credit score). He immediately gave me 1.84% for 60 through their system. He was willing to do as little as $5K down, but I made it $20K down to lower the overall debt load.
Le Mans Master
Joined: Oct 2012
Posts: 8,434
Likes: 409
From: Texas
Yep. It took me a while to figure this one out. The money does more good in other places when you can borrow it for so little.
Burning Brakes
Joined: Jan 2005
Posts: 1,055
Likes: 24
From: Cary NC
This was a good-through-September marketing incentive that Chevy ran on their website. Random visitors were offered the voucher when they started building a car on an online configurator. Trying to get them to complete the purchase quickly. It really wasn't intended for Vettes, but there was no restriction on us. But if you were lucky enough to hit the random jackpot, you had to sign up for it personally and the voucher is nontransferable. It's a moot point after today anyway and they aren't running the program currently.