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Tried to buy a ZR1

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Old 02-11-2018, 07:44 AM   #101  
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couple of points to know...

If you credit score is stellar, dealerships enter your info in the lenders computer system and there is such a thing called "auto approval" The computer decisions the loan and you can walk out without showing any docs other than your drivers license and proof of insurance. This is true up to the magic number of $100k. Once you are over $100k for a car loan...the process isn't that simple. The banks will want proof of income and know that the borrower is rock solid financially.

The dealership is also concerned as any defaults can leave a black mark with the relationship they have with the banks that do the financing.

Kerbeck has offered one of the lowest finance rates available to Corvette buyers...This is in part due to the historically low default rate of their customers with the bank(s) that offer this rate.

Kerbeck doesn't want to put someone into a $145,000 car that is taking their life savings just to make a relatively small deposit. It's a disservice to the borrower and a higher risk to their lenders. They also don't want to saddle their buyer with a high interest lending source that is willing to take the risk.

Sure, there is a lender out there that will most likely do the loan with little money down at a substantially higher interest rate, but does that make sense for the buyer?
Exactly correct. Remember the housing bubble and the subprime loans. Who got blamed for those? Not the borrower that obviously over extended themselves, no they were the victims of “predatory lending tactics”. The banks are the villains. Since 2008 borrowers have become more comfortable with upside down car loans.
I am not suggesting the OP is over extending just suggesting the way the lenders view such a transaction. IMO

https://qz.com/913093/car-loans-in-t...sing-fast-too/

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Old 02-12-2018, 01:42 PM   #102  
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My credit score is 815 out of 850 and I would not even consider financing a car as expensive as a ZR1. If you can't write the full check, you may be trying to play in the wrong league.
I completely disagree - with the cheap money available for so long now, it has been a while since I put any money down on a car. You make more by putting that money elsewhere than tied into a car.
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Old 02-12-2018, 05:07 PM   #103  
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The people in the thread saying if you can't pay cash you're out of your league know their statement is objectively BS. They say it as a "look at me". It's just a backhanded compliment to themselves.

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Old 02-12-2018, 09:10 PM   #104  
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The people in the thread saying if you can't pay cash you're out of your league know their statement is objectively BS. They say it as a "look at me". It's just a backhanded compliment to themselves.
My thoughts exactly!
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Old 02-12-2018, 10:00 PM   #105  
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The people in the thread saying if you can't pay cash you're out of your league know their statement is objectively BS. They say it as a "look at me". It's just a backhanded compliment to themselves.
Disagree. While financing a car is ness some times in life, we aren't talking about daily drivers here. These are toys (very expensive but toys none the less) and I think toys should be bought with cash. This includes boats, sports cars and motorcycles. While I pay cash for all my vehicles, I would finance a new sedan, sport ute or truck if something happened and I needed to. I would not finance a 150k weekend toy car JMHO and if your buying a new ZR1 as a daily driver I think there are some issues there as well. Good luck either way OP

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Old 02-13-2018, 09:14 AM   #106  
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Disagree. While financing a car is ness some times in life, we aren't talking about daily drivers here. These are toys (very expensive but toys none the less) and I think toys should be bought with cash. This includes boats, sports cars and motorcycles. While I pay cash for all my vehicles, I would finance a new sedan, sport ute or truck if something happened and I needed to. I would not finance a 150k weekend toy car JMHO and if your buying a new ZR1 as a daily driver I think there are some issues there as well. Good luck either way OP
I think you're missing my point. Here's the two different responses to the OP.

"That's a bummer dude. On the bright side you won't be stuck with a 2K a month payment. Maybe save for another year or so can lower the payment to something more reasonable, or even wait for used and try to buy it outright."

"I'VE BOUGHT MY LAST 10 CARS IN CASH AND HAVE A ZR1 ON ORDER RIGHT NOW THAT I'M GOING TO PAY CASH FOR. IF YOU CAN'T DO THE SAME YOU SHOULDN'T HAVE THE CAR!"

The advice to buy something in cash isn't "bad" advice, it's not realistic for everyone, and if everyone had that philosophy the economy would grind to a halt.

The difference in the above statements is who the posts are for. The first one is to genuinely offer some advice to the OP. The second is showboating and "look at me"..and everyone hates "that guy".

I used to roadrace motorcycles...that community is full of a lot of the same types of egotistical insecure people.
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Old 02-13-2018, 06:21 PM   #107  
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The people in the thread saying if you can't pay cash you're out of your league know their statement is objectively BS. They say it as a "look at me". It's just a backhanded compliment to themselves.
A lot of them probably borrowed cash from their HOME EQUITY line of credit!
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Old 02-13-2018, 07:59 PM   #108  
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I think you're missing my point. Here's the two different responses to the OP.

"That's a bummer dude. On the bright side you won't be stuck with a 2K a month payment. Maybe save for another year or so can lower the payment to something more reasonable, or even wait for used and try to buy it outright."

"I'VE BOUGHT MY LAST 10 CARS IN CASH AND HAVE A ZR1 ON ORDER RIGHT NOW THAT I'M GOING TO PAY CASH FOR. IF YOU CAN'T DO THE SAME YOU SHOULDN'T HAVE THE CAR!"

The advice to buy something in cash isn't "bad" advice, it's not realistic for everyone, and if everyone had that philosophy the economy would grind to a halt.

The difference in the above statements is who the posts are for. The first one is to genuinely offer some advice to the OP. The second is showboating and "look at me"..and everyone hates "that guy".

I used to roadrace motorcycles...that community is full of a lot of the same types of egotistical insecure people.
I see your point but the advice is still good even if the delivery is bad. The cars we are talking about serve no purpose other than consuming tires and wasting money. They are best left in the hands of those who have tons of disposable income. If you can, only finance things you need eventually you'll be able to buy the things you want. I get that its hard to wait but it's way easier if you do.
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Old 02-13-2018, 10:28 PM   #109  
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I get that its hard to wait but it's way easier if you do.
I would guess that some that will buy a ZR1 don't have the income to support a cash purchase the financial "size" of a ZR1 and also live their lives as they have become accustomed to.

Then there are those that have moderate levels of income but plenty of cash to purchase a ZR1 but will not do so simply because they do not feel it's prudent.

I have great friends in both camps and applaud them for making the choices they do that fit well with the way they have chosen to live their lives.

Most of my friends in the first camp are self employed, work hard for what they have and reward themselves once in awhile for that work. Many in the second camp are typically employee's for larger organizations, work equally as hard, and more often than not are risk averse.

I can't say I feel either way is "wrong". Both seem extremely happy with their decisions and simply have different priorities or are in different stages of their lives.

As I grow older and near 50 I find myself paying cash more often simply because my other needs have been met and my income is greater than it was when I was first starting out. Not saying that's good or bad. Just an observation.

I can say though for the cars I have borrowed to purchase over the years I wouldn't do it any differently if I had to do it over. Cars have always been a part of my life and the experiences and memories that I have for me are priceless and simply can't be measured monetarily.

In two years, as that's when I expect to take a very hard look at purchasing a ZR1, I will just do whatever makes the most sense for me at the time. I won't feel one way or another about it whether I pay cash for it or finance it for some reason. I will just truly enjoy the car and all of the amazing experiences that will go along with it.
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Old 02-13-2018, 10:34 PM   #110  
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I would guess that some that will buy a ZR1 don't have the income to support a cash purchase the financial "size" of a ZR1 and also live their lives as they have become accustomed to.

Then there are those that have moderate levels of income but plenty of cash to purchase a ZR1 but will not do so simply because they do not feel it's prudent.

I have great friends in both camps and applaud them for making the choices they do that fit well with the way they have chosen to live their lives.

Most of my friends in the first camp are self employed, work hard for what they have and reward themselves once in awhile for that work. Many in the second camp are typically employee's for larger organizations, work equally as hard, and more often than not are risk averse.

I can't say I feel either way is "wrong". Both seem extremely happy with their decisions and simply have different priorities or are in different stages of their lives.

As I grow older and near 50 I find myself paying cash more often simply because my other needs have been met and my income is greater than it was when I was first starting out. Not saying that's good or bad. Just an observation.

I can say though for the cars I have borrowed to purchase over the years I wouldn't do it any differently if I had to do it over. Cars have always been a part of my life and the experiences and memories that I have for me are priceless and simply can't be measured monetarily.

In two years, as that's when I expect to take a very hard look at purchasing a ZR1, I will just do whatever makes the most sense for me at the time. I won't feel one way or another about it whether I pay cash for it or finance it for some reason. I will just truly enjoy the car and all of the amazing experiences that will go along with it.
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Old 02-22-2018, 02:29 PM   #111  
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I dig the heck out of the new ZR1, but to spend $150K on an expensive to insurance and maintain hobby car you need to 1) be making $350K+ annually and it showing no signs of slowing down, OR 2) have at least 2.5+ million in net value after all major expenses are covered. That's my opinion.

This is a lot of money, and I don't know where you guys live but where i live 500 rwhp is WAY to much to use much without going to jail, much less the new ZR1's power.

As far as paying cash, I pay cash for all of my vehicles as my income is very unstable, and I'll tell you that's it's tough to get a dealership to accept full payment in cash/ bank wire if you have negotiated a decent deal. They really depend on extended warranties and financing to make up the difference. When I purchased my wife's new (it was a demo) Grand Cherokee (MSRP 56K, paid $46K before taxes) they argued with me for an hour about making me finance it, when it became clear they were unrelenting (and I needed that vehicle that day unfortunately) I just broke down and financed it and paid it off when that payment stub arrived.

I really feel Americans are too much the 'want it right now culture' when they should be more in to saving.

Good luck.
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Old 02-22-2018, 02:34 PM   #112  
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I dig the heck out of the new ZR1, but to spend $150K on an expensive to insurance and maintain hobby car you need to 1) be making $350K+ annually and it showing no signs of slowing down, OR 2) have at least 2.5+ million in net value after all major expenses are covered. That's my opinion.

This is a lot of money, and I don't know where you guys live but where i live 500 rwhp is WAY to much to use much without going to jail, much less the new ZR1's power.

As far as paying cash, I pay cash for all of my vehicles as my income is very unstable, and I'll tell you that's it's tough to get a dealership to accept full payment in cash/ bank wire if you have negotiated a decent deal. They really depend on extended warranties and financing to make up the difference. When I purchased my wife's new (it was a demo) Grand Cherokee (MSRP 56K, paid $46K before taxes) they argued with me for an hour about making me finance it, when it became clear they were unrelenting (and I needed that vehicle that day unfortunately) I just broke down and financed it and paid it off when that payment stub arrived.

I really feel Americans are too much the 'want it right now culture' when they should be more in to saving.

Good luck.

i think it would be better making like 2 million a year, have 50 million in savings and own a township to afford a ZR1
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Old 02-22-2018, 05:07 PM   #113  
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My credit score is 740 and I put 20k down on my z06 that was 116 out the door, dont expect to buy 145.000 dollar car without any down payment, and that will be large down payment.

credit score don't mean **** for the bank in many cases,
Scenario 1, lets say you have 850 credit score and you always paid your bills on time and you have 15.000 dollar credit card and you paid off few cards and some car loan.
scenario #2 you have 701 credit score but you paid off few loans that were 70 grand range, that's a strong credit, bank will take that 701 over 850, if you haven't paid off anything in large amounts bank will not finance unless u put large down.
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Old 02-23-2018, 08:13 AM   #114  
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i think it would be better making like 2 million a year, have 50 million in savings and own a township to afford a ZR1
I just sold my house and lived in my ZR
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Old 02-24-2018, 12:30 AM   #115  
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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.
You're on the right track. There is already talk of future defaults with all the inflation in car prices (high purchase prices) combined with very low down payments. Lenders are going to start figuring where they want to draw the line.

701 isn't a bad score but it's nowhere near an excellent score. These days if you try to buy a home with a 701 you're going to be paying at least a quarter point more than someone 740+. The 740 has become what 700 was years ago.
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Old 02-24-2018, 01:32 AM   #116  
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Disagree. While financing a car is ness some times in life, we aren't talking about daily drivers here. These are toys (very expensive but toys none the less) and I think toys should be bought with cash. This includes boats, sports cars and motorcycles. While I pay cash for all my vehicles, I would finance a new sedan, sport ute or truck if something happened and I needed to. I would not finance a 150k weekend toy car JMHO and if your buying a new ZR1 as a daily driver I think there are some issues there as well. Good luck either way OP
How does paying cash make any sense at all when you can pay a loan rate between 2%-3% and your money can conservatively be earning 5%-7% in numerous other investment options
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Old 02-24-2018, 02:18 PM   #117  
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How does paying cash make any sense at all when you can pay a loan rate between 2%-3% and your money can conservatively be earning 5%-7% in numerous other investment options
How does paying 160k for a 120k car that serves no purpose make more sense. There is a time and place for financing a vehicle supercars isn't it. But hey this is the internet and my opinion you do what you want.
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Old 02-24-2018, 03:09 PM   #118  
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If you can get cash at 1-2 percent then your a fool putting any more down that they absolutely require.

You pay 145K cash for a ZR1, someone hits it, wrecks it, and now your fighting with the insurance company to get YOUR money back.

You get a lemon and your fighting over 145K of YOUR money.

You finance it, someone hits it, its someone else problem and you have the majority of your cash.

Most of these cash big talkers, if they are really even paying cash, are taking the money from another source or investment. Here is a hint, if you pull 145K out of an investment making 4 percent return, your paying 4 percent interest on the money you just took out.

The OP said the dealer was Kerbeck, so if what he is being told is true they want that kind of down payment to finance, outside of the OP's credit status, that tells you what the lenders think the vehicle is worth.
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Old 02-24-2018, 11:15 PM   #119  
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Paying cash is absolutely wrong move,
even if you have the cash seating right in front of you it's better to finance and pay off In short period of time.
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Old 02-25-2018, 12:00 AM   #120  
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You finance it, someone hits it, its someone else problem and you have the majority of your cash
Excuse me but NO your still stuck with the loan to pay just same as with cash it is YOUR car.
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