Financing Question?
Popular Reply
Mar 3, 2022, 09:29 AM
Burning Brakes
Joined: Feb 2007
Posts: 1,041
Likes: 566
From: Bolingbrook IL
I hate to sound like an old financial advisor, but if you're questioning your ability to buy one/maintain payments, it's probably not the best investment.
Pro
Joined: Oct 2017
Posts: 517
Likes: 426
From: Myrtle Beach, SC
Look into balloon loan aka payment saver loans. Several credit unions around the country offer them. They're like a lease but you're technically the owner and have the flexibility to sell or trade your car in at any point during the loan to avoid the "balloon payment" due at the end. I've used two and haven't had any issue with them. The monthly payment ended up being about 35% less than a traditional financing plan.
At the time I used PenFed...but they no longer offer their payment saver loan. Not sure what happened to cause them to discontinue it. I guess they couldn't estimate the proper residual values given the way the car market is out of control these days.
CapEd Credit Union (https://capedcu.com/) is another option though. This particular CU also offers a 2.14% rate at 96 months which is pretty insane. Good luck.
At the time I used PenFed...but they no longer offer their payment saver loan. Not sure what happened to cause them to discontinue it. I guess they couldn't estimate the proper residual values given the way the car market is out of control these days.
CapEd Credit Union (https://capedcu.com/) is another option though. This particular CU also offers a 2.14% rate at 96 months which is pretty insane. Good luck.
Race Director
Joined: Nov 2004
Posts: 15,678
Likes: 1,097
From: birmingham Alabama
St. Jude Donor '09 and '13
You can go up to 84 months. Just a little advice. Pay ANYTHING extra each month that you can. That will knock off the interest and final payments. Per GM financial, there are no financing specials on new C8’s.
Race Director
Joined: Mar 2001
Posts: 19,898
Likes: 6,697
From: Bonneville Salt Flats
I think you need to ask the "usual suspects" of potential finance options, as already suggested.
Beyond the typical and above board, you enter La La Land where people break bones if you miss payments. You want a C8 that badly? But, seriously, if you talk with legit lenders and you have no retirement funds or such to legally tap, there's not much left... unless you and your accountant can come up with some "creative use" for the car, at least on paper, qualifying for some wonky business-expense tax-dodge.
Beyond the typical and above board, you enter La La Land where people break bones if you miss payments. You want a C8 that badly? But, seriously, if you talk with legit lenders and you have no retirement funds or such to legally tap, there's not much left... unless you and your accountant can come up with some "creative use" for the car, at least on paper, qualifying for some wonky business-expense tax-dodge.
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Pro
Joined: Jun 2021
Posts: 564
Likes: 239
From: Greenville SC
Look into balloon loan aka payment saver loans. Several credit unions around the country offer them. They're like a lease but you're technically the owner and have the flexibility to sell or trade your car in at any point during the loan to avoid the "balloon payment" due at the end. I've used two and haven't had any issue with them. The monthly payment ended up being about 35% less than a traditional financing plan.
At the time I used PenFed...but they no longer offer their payment saver loan. Not sure what happened to cause them to discontinue it. I guess they couldn't estimate the proper residual values given the way the car market is out of control these days.
CapEd Credit Union (https://capedcu.com/) is another option though. This particular CU also offers a 2.14% rate at 96 months which is pretty insane. Good luck.
At the time I used PenFed...but they no longer offer their payment saver loan. Not sure what happened to cause them to discontinue it. I guess they couldn't estimate the proper residual values given the way the car market is out of control these days.
CapEd Credit Union (https://capedcu.com/) is another option though. This particular CU also offers a 2.14% rate at 96 months which is pretty insane. Good luck.
Instructor
Joined: Jul 2014
Posts: 118
Likes: 56
I am an unpaid financial adviser! HA, I got 84 months at 2.5%. And I never plan to pay it off early. My build had a strict budget for my comfort level. I am fortunate that I can make the large payment. I only had 5 K down. But, if you have a C7 and are trading it in, You will be happy with the values they are holding now. In my state they reduce sales tax on new cars buy the trade in amount.
Good luck
I heard the fed is planning a rate increase this month
Good luck
I heard the fed is planning a rate increase this month
Administrator
Joined: Mar 2001
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But, most banks/credit unions offer 72-84 month financing and I have heard of 96 month terms. That is a long time for a car loan though.
Melting Slicks
Joined: Jun 2013
Posts: 2,598
Likes: 1,593
First... this is a Blondes vs Brunettes argument... Mary the woman you love...
That said, if you are in the position to spend $80K for a toy, you probably have accumulated some financial acumen... so look at your particular situation.
I just bought a C8... I did 2.99% finance for 71 months... I have the assets to buy the car cash, but if I withdraw money from my 401K, I get hit with 24% FIT, and 6% from Camelot... so a cash buy would cost me $24K in taxes... or spread the tax impact over 5 years at 12%...
30%... 12%... You don't have to be a Harvard MBA to do that math...
That said, if you are in the position to spend $80K for a toy, you probably have accumulated some financial acumen... so look at your particular situation.
I just bought a C8... I did 2.99% finance for 71 months... I have the assets to buy the car cash, but if I withdraw money from my 401K, I get hit with 24% FIT, and 6% from Camelot... so a cash buy would cost me $24K in taxes... or spread the tax impact over 5 years at 12%...
30%... 12%... You don't have to be a Harvard MBA to do that math...
Advanced
Joined: Jan 2022
Posts: 60
Likes: 40
Respectfully, if you're worried about extending the financing length to make the car fit into your budget, then you really can't afford it.
If you were trying to get longer financing like 72, 84 months etc for a car you absolutely needed (ie to get to work, etc), that's one thing. But for a "luxury" car like a C8 you should absolutely not be going anything longer than 5 years.
There's nothing wrong with not being able to afford a 80k-100k car. Yes it's an amazing car, but not amazing enough to put you in a difficult spot financially.
If you were trying to get longer financing like 72, 84 months etc for a car you absolutely needed (ie to get to work, etc), that's one thing. But for a "luxury" car like a C8 you should absolutely not be going anything longer than 5 years.
There's nothing wrong with not being able to afford a 80k-100k car. Yes it's an amazing car, but not amazing enough to put you in a difficult spot financially.
Drifting
Joined: May 2010
Posts: 1,839
Likes: 390
It will depend on where you are financially, credit wise, and what your current monthly financial obligations are. Is your C7 fully paid off or still making payments? You can use it as trade-in to lower your costs. You can try to calculate what your monthly payments may be by checking out calculatestuff.com. Good luck!
Burning Brakes
Joined: Sep 2012
Posts: 1,102
Likes: 343
From: JACKSONVILLE fla
First... this is a Blondes vs Brunettes argument... Mary the woman you love...
That said, if you are in the position to spend $80K for a toy, you probably have accumulated some financial acumen... so look at your particular situation.
I just bought a C8... I did 2.99% finance for 71 months... I have the assets to buy the car cash, but if I withdraw money from my 401K, I get hit with 24% FIT, and 6% from Camelot... so a cash buy would cost me $24K in taxes... or spread the tax impact over 5 years at 12%...
30%... 12%... You don't have to be a Harvard MBA to do that math...
That said, if you are in the position to spend $80K for a toy, you probably have accumulated some financial acumen... so look at your particular situation.
I just bought a C8... I did 2.99% finance for 71 months... I have the assets to buy the car cash, but if I withdraw money from my 401K, I get hit with 24% FIT, and 6% from Camelot... so a cash buy would cost me $24K in taxes... or spread the tax impact over 5 years at 12%...
30%... 12%... You don't have to be a Harvard MBA to do that math...
Drifting
Joined: Sep 2020
Posts: 1,453
Likes: 1,193
From: DFW
First... this is a Blondes vs Brunettes argument... Mary the woman you love...
That said, if you are in the position to spend $80K for a toy, you probably have accumulated some financial acumen... so look at your particular situation.
I just bought a C8... I did 2.99% finance for 71 months... I have the assets to buy the car cash, but if I withdraw money from my 401K, I get hit with 24% FIT, and 6% from Camelot... so a cash buy would cost me $24K in taxes... or spread the tax impact over 5 years at 12%...
30%... 12%... You don't have to be a Harvard MBA to do that math...
That said, if you are in the position to spend $80K for a toy, you probably have accumulated some financial acumen... so look at your particular situation.
I just bought a C8... I did 2.99% finance for 71 months... I have the assets to buy the car cash, but if I withdraw money from my 401K, I get hit with 24% FIT, and 6% from Camelot... so a cash buy would cost me $24K in taxes... or spread the tax impact over 5 years at 12%...
30%... 12%... You don't have to be a Harvard MBA to do that math...
Melting Slicks
Joined: May 2003
Posts: 2,720
Likes: 1,061
I believe he used FIT as an acronym for Federal Income Tax. "Camelot" is probably his state income tax.
Racer
Joined: Sep 2021
Posts: 360
Likes: 129
I am an unpaid financial adviser! HA, I got 84 months at 2.5%. And I never plan to pay it off early. My build had a strict budget for my comfort level. I am fortunate that I can make the large payment. I only had 5 K down. But, if you have a C7 and are trading it in, You will be happy with the values they are holding now. In my state they reduce sales tax on new cars buy the trade in amount.
Good luck
I heard the fed is planning a rate increase this month
Good luck
I heard the fed is planning a rate increase this month
