Tried to buy a ZR1
02-03-2018, 07:32 AM
#21
What an idiot then Chevy might sell about 50 ZR1’s.Lets See all the cars you paid 100 percent cash for?????
02-03-2018, 07:35 AM
#22
Racer
Thread Starter
02-03-2018, 07:37 AM
#23
02-03-2018, 07:40 AM
#24
Racer
Thread Starter
If there was no auto financing there would hardly be any cars on the road and there would be no economy. Our whole financial system is built around debt and lending to sustain itself.
02-03-2018, 07:44 AM
#25
Racer
Thread Starter
02-03-2018, 07:46 AM
#26
Racer
Thread Starter
02-03-2018, 07:51 AM
#27
Racer
Thread Starter
If everyone was required to pay cash for their new Corvette then GM and the entire car industry would be out of business. You obviously know nothing about economics.
Last edited by DebRedZR1; 02-03-2018 at 08:15 AM. Reason: Hostility clean up
02-03-2018, 08:20 AM
#28
Moderator
Member Since: Jul 2005
Location: West MI
Posts: 27,699
Received 3,622 Likes
on
1,741 Posts
CF Banner Relay Captain
West MI & JAX/NE Florida
Events Coordinator
St. Jude Donor '11-'12-'13-'14-'15-'16-'17, '21
OK kids we all have our own comfort zones on what we want to finance, and all lending institutions have different requirements. As noted If everyone paid cash for cars the Stealerships would be out of Business OR really charging outrageous MAPs.
Please continue the conversation sans the personal attacks
Please continue the conversation sans the personal attacks
Last edited by DebRedZR1; 02-03-2018 at 09:30 AM.
02-03-2018, 09:31 AM
#30
Moderator
Member Since: Jul 2005
Location: West MI
Posts: 27,699
Received 3,622 Likes
on
1,741 Posts
CF Banner Relay Captain
West MI & JAX/NE Florida
Events Coordinator
St. Jude Donor '11-'12-'13-'14-'15-'16-'17, '21
02-03-2018, 10:17 AM
#32
I agree with this. One will be very upside down on the car from day one. Banks don't want to risk that much. They prefer people throwing there cash out to be first and not care about the loss.
02-03-2018, 10:39 AM
#33
Someone with multiple secure income streams and cash in the bank can invest the cash in one of many reliable investments (stocks/real estate) that yield 6-9% yearly other than have it tied up in a depreciating asset. Obviously you take the depreciation hit either way and financing the depreciation is costly however with a reasonable down payment to counter this the benefit of financing is significant especially if your investments do well (stock market up roughly 20% over last 12 months). Not for the risk adverse or those not financially equipped however it has worked for many in the past.
The ones saying "dont/shouldnt buy a ZR1 unless you can pay cash" are entitled to their opinion but this is not realistic in mine.
02-03-2018, 11:26 AM
#34
Racer
Thread Starter
Banks are used to this risk, they provide financing at $0 down with similar amounts/percentages of negative equity in cars once they drive off the lot every single day. Obviously everyone's appetite for risk is different but consider this:
Someone with multiple secure income streams and cash in the bank can invest the cash in one of many reliable investments (stocks/real estate) that yield 6-9% yearly other than have it tied up in a depreciating asset. Obviously you take the depreciation hit either way and financing the depreciation is costly however with a reasonable down payment to counter this the benefit of financing is significant especially if your investments do well (stock market up roughly 20% over last 12 months). Not for the risk adverse or those not financially equipped however it has worked for many in the past.
The ones saying "dont/shouldnt buy a ZR1 unless you can pay cash" are entitled to their opinion but this is not realistic in mine.
Someone with multiple secure income streams and cash in the bank can invest the cash in one of many reliable investments (stocks/real estate) that yield 6-9% yearly other than have it tied up in a depreciating asset. Obviously you take the depreciation hit either way and financing the depreciation is costly however with a reasonable down payment to counter this the benefit of financing is significant especially if your investments do well (stock market up roughly 20% over last 12 months). Not for the risk adverse or those not financially equipped however it has worked for many in the past.
The ones saying "dont/shouldnt buy a ZR1 unless you can pay cash" are entitled to their opinion but this is not realistic in mine.
02-03-2018, 11:55 AM
#35
Team Owner
2017 Z06 is in the garage I paid cash for it. My 2015 Z06 is 1.69 interest the payment is 700. If I do an ME it will cash!
The dealer did the OP a favor IMO.
02-03-2018, 12:01 PM
#36
Team Owner
02-03-2018, 12:18 PM
#37
Le Mans Master
One can have a 800+ credit score and not get approved for a loan. Many times banks are looking at the debt to income ratio. They can be paying all their debts on time, but if the bank feels you are over extending yourself...they will not approve it. Also, some banks and credit unions are more liberal than others and may overlook the income to debt ratio and approve you because of your good credit rating and history of making payments on time. I know this because I have been in this situation before.
Last edited by Supersonic 427; 02-04-2018 at 01:40 PM.
02-03-2018, 12:37 PM
#38
Moderator
Member Since: Jul 2005
Location: West MI
Posts: 27,699
Received 3,622 Likes
on
1,741 Posts
CF Banner Relay Captain
West MI & JAX/NE Florida
Events Coordinator
St. Jude Donor '11-'12-'13-'14-'15-'16-'17, '21
Some leases equal about the depreciation you hit, doubtful any good finance deals on ZRs to start with. Now at quota time when the hype is over who knows. ....
02-03-2018, 01:00 PM
#39
Le Mans Master
Member Since: Oct 2005
Location: Plymouth Massachusetts
Posts: 9,465
Received 3,096 Likes
on
1,732 Posts
Finalist 2020 C7 of the Year -- Unmodified
Even if guys are putting down $50,000 on a ZR1 they will still have a $100,000 note with the bank in some cases. 1.9% for 60 months = $1748 YIKES!
The following users liked this post:
tdf01cycling (02-05-2018)
02-03-2018, 01:09 PM
#40
Burning Brakes
Member Since: Jan 2017
Location: Saint Clair Shores Michigan
Posts: 767
Received 218 Likes
on
153 Posts
Hmm...
I'm sure it's been mentioned, but you can definitely opt for financing on your own. It's unknown (to me) if the dealership's refusal is a true trend of the type of down payment / purchase you intend to make or if it's their own protocol. However, you can find out by playing the field and see what other financial institutions will offer.
Despite the credit score, they still need to see if you're able to sustain the payments based on income, interest rate, etc, which I'm sure you're aware of. I'm assuming you've taken this all into account, but your job is also to ensure that despite the sum of ones parts (.ie the credit score) it's a "no doubter" from the perspective of the people that's going to be loaning +100k to you.
The tricky part to me is applying for financing prior to ordering the vehicle one month before official production. If I recall, the approval has a limited offer window depending on the bank...which I believe is shorter than the processing time from conception to delivery if you placed the order today. You don't want to be put in a situation where you order the car only to find out that you can't get approved. I had the liberty of ordering first and getting financed once the car was delivered. But I also didn't apply for a loan that large.
Good thing is time is in your favor to come up with a game plan.
I'm sure it's been mentioned, but you can definitely opt for financing on your own. It's unknown (to me) if the dealership's refusal is a true trend of the type of down payment / purchase you intend to make or if it's their own protocol. However, you can find out by playing the field and see what other financial institutions will offer.
Despite the credit score, they still need to see if you're able to sustain the payments based on income, interest rate, etc, which I'm sure you're aware of. I'm assuming you've taken this all into account, but your job is also to ensure that despite the sum of ones parts (.ie the credit score) it's a "no doubter" from the perspective of the people that's going to be loaning +100k to you.
The tricky part to me is applying for financing prior to ordering the vehicle one month before official production. If I recall, the approval has a limited offer window depending on the bank...which I believe is shorter than the processing time from conception to delivery if you placed the order today. You don't want to be put in a situation where you order the car only to find out that you can't get approved. I had the liberty of ordering first and getting financed once the car was delivered. But I also didn't apply for a loan that large.
Good thing is time is in your favor to come up with a game plan.