Financing Options
12-09-2022, 09:09 PM
#181
Rennlist Member
Not being critical but simply asking a question. Isn’t that about 4% higher than some of the numbers people are saying is in the market at various Credit Unions? Seems extremely high for a car loan. That’s $4,000 a year +\_ depending on your finance amount. Hopefully you got a really good “deal” on the warranty stuff. Did they budge on the ADM? Congrats on getting one step closer.
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AlexCeres (12-12-2022)
12-09-2022, 09:11 PM
#182
Not being critical but simply asking a question. Isn’t that about 4% higher than some of the numbers people are saying is in the market at various Credit Unions? Seems extremely high for a car loan. That’s $4,000 a year +\_ depending on your finance amount. Hopefully you got a really good “deal” on the warranty stuff. Did they budge on the ADM? Congrats on getting one step closer.
12-09-2022, 09:15 PM
#183
Rennlist Member
12-09-2022, 09:16 PM
#184
12-10-2022, 12:16 AM
#185
Drifting
Thread Starter
I actually also got the same with that Credit Union. The reason I didn’t go with them is because they would only finance up to 120k. That would require me putting down about 45k for my down payment. That kinda puts me a bit below my cushion and that’s also without any of the warranty stuff which I was going to buy anyways. I normally don’t spring for warranty stuff but I also have always bought cheaper cars. The discount was pretty decent, saved me about 5000$ and since I was going to buy it anyways I am basically counting that as a reduction in my ADM.
I don’t plan on holding this interest rate for long. A month or two at the most. And then will just refinance when I’m sure my Credit Score won’t put be below Tier 1 financing.
now this might not work for everyone and everyone has different priorities, however for me it was worth it for the discounts and to not drop me below my bottom line for my savings. I could have technically gone as far as reducing the loan amount to 100k but that just puts me in a spot that makes me uncomfortable so I decided to take this route.
I don’t plan on holding this interest rate for long. A month or two at the most. And then will just refinance when I’m sure my Credit Score won’t put be below Tier 1 financing.
now this might not work for everyone and everyone has different priorities, however for me it was worth it for the discounts and to not drop me below my bottom line for my savings. I could have technically gone as far as reducing the loan amount to 100k but that just puts me in a spot that makes me uncomfortable so I decided to take this route.
12-10-2022, 09:56 AM
#186
I actually also got the same with that Credit Union. The reason I didn’t go with them is because they would only finance up to 120k. That would require me putting down about 45k for my down payment. That kinda puts me a bit below my cushion and that’s also without any of the warranty stuff which I was going to buy anyways. I normally don’t spring for warranty stuff but I also have always bought cheaper cars. The discount was pretty decent, saved me about 5000$ and since I was going to buy it anyways I am basically counting that as a reduction in my ADM.
I don’t plan on holding this interest rate for long. A month or two at the most. And then will just refinance when I’m sure my Credit Score won’t put be below Tier 1 financing.
now this might not work for everyone and everyone has different priorities, however for me it was worth it for the discounts and to not drop me below my bottom line for my savings. I could have technically gone as far as reducing the loan amount to 100k but that just puts me in a spot that makes me uncomfortable so I decided to take this route.
I don’t plan on holding this interest rate for long. A month or two at the most. And then will just refinance when I’m sure my Credit Score won’t put be below Tier 1 financing.
now this might not work for everyone and everyone has different priorities, however for me it was worth it for the discounts and to not drop me below my bottom line for my savings. I could have technically gone as far as reducing the loan amount to 100k but that just puts me in a spot that makes me uncomfortable so I decided to take this route.
12-10-2022, 12:47 PM
#187
Rennlist Member
So update:
I did my paperwork for the car today. For anyone who is thinking about financing with PFS, they are currently at 8.5% and offering 72 months financing plan. So pretty high. I decided to go with them because they offered some nice discounts on some of the warranty packages that I wanted and I plan on re-financing down the line anyways. I currently am sitting at 789 Equifax credit score
I did my paperwork for the car today. For anyone who is thinking about financing with PFS, they are currently at 8.5% and offering 72 months financing plan. So pretty high. I decided to go with them because they offered some nice discounts on some of the warranty packages that I wanted and I plan on re-financing down the line anyways. I currently am sitting at 789 Equifax credit score
Congratulations on completing your purchase.
Man, the interest rates have certainly changed for the worse since I did my 2021 GT4.
Looks like they are 4-times what my interest was see below.
Date of origination:
10/18/2021
Interest rate:
2.14% for 72 months BOA
Terry
Last edited by tigerhonaker; 12-10-2022 at 12:49 PM.
12-10-2022, 02:12 PM
#188
@Xxyion i just got my GT4 and the car is amazing, so I don't want to be a downer. I know youve been waiting on this thing for months as well and are super excited.
I know it's not my money and I generally say life is short, but I'd give this one some thought. ADM + add on warranty items (which I still don't totally get) + a near 9% interest rate may be a recipe for disaster. As someone else mentioned, You'll be hard pressed to refinance being that underwater (without putting big money down, which you've already said is an issue).
id personally take the 3.49 at 72, put more money down, and tighten up the budget in the future so you're not stretching yourself too thin. The car is amazing and so worth it, but like I said, the circumstances you are getting yourself into may be a lot. Just my two cents. Again, not trying to be a downer, but just want to be realistic and helpful.
I know it's not my money and I generally say life is short, but I'd give this one some thought. ADM + add on warranty items (which I still don't totally get) + a near 9% interest rate may be a recipe for disaster. As someone else mentioned, You'll be hard pressed to refinance being that underwater (without putting big money down, which you've already said is an issue).
id personally take the 3.49 at 72, put more money down, and tighten up the budget in the future so you're not stretching yourself too thin. The car is amazing and so worth it, but like I said, the circumstances you are getting yourself into may be a lot. Just my two cents. Again, not trying to be a downer, but just want to be realistic and helpful.
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MSRPhunter227 (12-10-2022)
12-10-2022, 05:14 PM
#189
Drifting
Thread Starter
@Xxyion i just got my GT4 and the car is amazing, so I don't want to be a downer. I know youve been waiting on this thing for months as well and are super excited.
I know it's not my money and I generally say life is short, but I'd give this one some thought. ADM + add on warranty items (which I still don't totally get) + a near 9% interest rate may be a recipe for disaster. As someone else mentioned, You'll be hard pressed to refinance being that underwater (without putting big money down, which you've already said is an issue).
id personally take the 3.49 at 72, put more money down, and tighten up the budget in the future so you're not stretching yourself too thin. The car is amazing and so worth it, but like I said, the circumstances you are getting yourself into may be a lot. Just my two cents. Again, not trying to be a downer, but just want to be realistic and helpful.
I know it's not my money and I generally say life is short, but I'd give this one some thought. ADM + add on warranty items (which I still don't totally get) + a near 9% interest rate may be a recipe for disaster. As someone else mentioned, You'll be hard pressed to refinance being that underwater (without putting big money down, which you've already said is an issue).
id personally take the 3.49 at 72, put more money down, and tighten up the budget in the future so you're not stretching yourself too thin. The car is amazing and so worth it, but like I said, the circumstances you are getting yourself into may be a lot. Just my two cents. Again, not trying to be a downer, but just want to be realistic and helpful.
I understand its a massive amount of interest, but my post initially was more to let people know what they would be dealing with if they attempted to go with PFS. I had to do some weird math in my head but overall this actually works out better for me.in both the short and long term.
12-10-2022, 05:17 PM
#190
Thank you for your concern! Without going into too much of my personal life, i have some other circumstances which make refinancing this essentially already in the bag. I understand the point about being under, however i'm still putting a good chunk of money down (just not the 50k that i would need to) and just waiting for some other things on my end to clear up before doing the re-financing.
I understand its a massive amount of interest, but my post initially was more to let people know what they would be dealing with if they attempted to go with PFS. I had to do some weird math in my head but overall this actually works out better for me.in both the short and long term.
I understand its a massive amount of interest, but my post initially was more to let people know what they would be dealing with if they attempted to go with PFS. I had to do some weird math in my head but overall this actually works out better for me.in both the short and long term.
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Xxyion (12-10-2022)
12-10-2022, 09:31 PM
#191
Drifting
@Xxyion i just got my GT4 and the car is amazing, so I don't want to be a downer. I know youve been waiting on this thing for months as well and are super excited.
I know it's not my money and I generally say life is short, but I'd give this one some thought. ADM + add on warranty items (which I still don't totally get) + a near 9% interest rate may be a recipe for disaster. As someone else mentioned, You'll be hard pressed to refinance being that underwater (without putting big money down, which you've already said is an issue).
id personally take the 3.49 at 72, put more money down, and tighten up the budget in the future so you're not stretching yourself too thin. The car is amazing and so worth it, but like I said, the circumstances you are getting yourself into may be a lot. Just my two cents. Again, not trying to be a downer, but just want to be realistic and helpful.
I know it's not my money and I generally say life is short, but I'd give this one some thought. ADM + add on warranty items (which I still don't totally get) + a near 9% interest rate may be a recipe for disaster. As someone else mentioned, You'll be hard pressed to refinance being that underwater (without putting big money down, which you've already said is an issue).
id personally take the 3.49 at 72, put more money down, and tighten up the budget in the future so you're not stretching yourself too thin. The car is amazing and so worth it, but like I said, the circumstances you are getting yourself into may be a lot. Just my two cents. Again, not trying to be a downer, but just want to be realistic and helpful.
I'm ok with risk (I'm not rich and had twice what I make in a year in a single penny stock for example), I also have more property than I should have for my household income. But I'd never buy a car on those terms. As open to risk as I am, if there is no cushion there to liquidate it. There is potentially no way out. risk is fine, but when you risk catastrophic failure of your finances that's a no go zone for me.
Everything I invest in for property has a healthy cushion, 20-30% down and can be sold if need be. I've only financed a few cars because the rate was so low (although I did finance a portion of my gt4 rather than liquidating an investment I planned to do). When you're upsidedown on a car loan to me that usually means you're also stretched to the max everywhere else because in my experience you only finance at 6%+ if you're tapped out.
Being stretched on a big car loan, even if you have 10-20% equity built up, can bring your whole existence crashing down. Can't afford your car and risk defaulting on payments means you gotta sell it, but if it's only worth 100k and you owe 130k, that means you gotta come up with 30k. Can't clear the loan, means you could be forced to sell your property. if the market is crap even though you were up 10-20% in equity means mistiming selling your house could leave you with negative equity again, so you can't sell it. Now instead of being 10-20% up on your property you're facing bankruptcy, all because of a stupid car you didn't need. I'm amazed how many people exist without a cushion and how many people are upsidedown facing total collapse if there is any hiccup in their life. I would never finance an expensive car because I had to finance an expensive car.
Last edited by Zhao; 12-10-2022 at 09:32 PM.
12-11-2022, 12:56 PM
#192
12-11-2022, 01:24 PM
#193
12-11-2022, 06:15 PM
#194
12-11-2022, 07:18 PM
#195
Drifting
Thread Starter
Ya that has some major danger signs to me too. Almost guarantees you be upsidedown for years on that which means unless you have liquid cash you can't sell it.
I'm ok with risk (I'm not rich and had twice what I make in a year in a single penny stock for example), I also have more property than I should have for my household income. But I'd never buy a car on those terms. As open to risk as I am, if there is no cushion there to liquidate it. There is potentially no way out. risk is fine, but when you risk catastrophic failure of your finances that's a no go zone for me.
Everything I invest in for property has a healthy cushion, 20-30% down and can be sold if need be. I've only financed a few cars because the rate was so low (although I did finance a portion of my gt4 rather than liquidating an investment I planned to do). When you're upsidedown on a car loan to me that usually means you're also stretched to the max everywhere else because in my experience you only finance at 6%+ if you're tapped out.
Being stretched on a big car loan, even if you have 10-20% equity built up, can bring your whole existence crashing down. Can't afford your car and risk defaulting on payments means you gotta sell it, but if it's only worth 100k and you owe 130k, that means you gotta come up with 30k. Can't clear the loan, means you could be forced to sell your property. if the market is crap even though you were up 10-20% in equity means mistiming selling your house could leave you with negative equity again, so you can't sell it. Now instead of being 10-20% up on your property you're facing bankruptcy, all because of a stupid car you didn't need. I'm amazed how many people exist without a cushion and how many people are upsidedown facing total collapse if there is any hiccup in their life. I would never finance an expensive car because I had to finance an expensive car.
I'm ok with risk (I'm not rich and had twice what I make in a year in a single penny stock for example), I also have more property than I should have for my household income. But I'd never buy a car on those terms. As open to risk as I am, if there is no cushion there to liquidate it. There is potentially no way out. risk is fine, but when you risk catastrophic failure of your finances that's a no go zone for me.
Everything I invest in for property has a healthy cushion, 20-30% down and can be sold if need be. I've only financed a few cars because the rate was so low (although I did finance a portion of my gt4 rather than liquidating an investment I planned to do). When you're upsidedown on a car loan to me that usually means you're also stretched to the max everywhere else because in my experience you only finance at 6%+ if you're tapped out.
Being stretched on a big car loan, even if you have 10-20% equity built up, can bring your whole existence crashing down. Can't afford your car and risk defaulting on payments means you gotta sell it, but if it's only worth 100k and you owe 130k, that means you gotta come up with 30k. Can't clear the loan, means you could be forced to sell your property. if the market is crap even though you were up 10-20% in equity means mistiming selling your house could leave you with negative equity again, so you can't sell it. Now instead of being 10-20% up on your property you're facing bankruptcy, all because of a stupid car you didn't need. I'm amazed how many people exist without a cushion and how many people are upsidedown facing total collapse if there is any hiccup in their life. I would never finance an expensive car because I had to finance an expensive car.
I'm not going to go into detail about my personal financial situation on a public forum and honestly see no reason to convince anyone of anything. But i also do try to be as transparent as much as i can when it comes to letting people know whats going on. just know i'm not putting myself in a hole and this was my way of getting things that i wanted at a reduced cost.