longer term loan for GT3
12-15-2017, 09:38 AM
#31
If I was looking for the lowest cash cost loan possible I would use a margin loan or PLA. Interactive Brokers is a little under 2.4% on $175k with no requirement to repay if you have the portfolio with them to support it. Better to sell assets to buy car with cash (ideally TLH), rebuy assets with loan so the internet is deductible. 2.4% becomes closer to 1.2% after tax. Rate is floating, but you said you're looking for a short hold with minimal cash impact.
Of course it is risky, but so is buying a car thinking you can flip for a profit.
Of course it is risky, but so is buying a car thinking you can flip for a profit.
12-15-2017, 10:32 AM
#32
It is unfortunate to see this and it truly hurts me, but it is the truth. Brings bad rep to people who finance.
Some may not be fortunate enough to have a 7 figure bank account, but are true enthusiasts who have enjoyed cars all their life and have gotten to a point where they can afford a GT3. They do not want to wait another 5-10 years to have the spare change in the bank to buy one outright, but because they really want it, the only option is to finance. In fact, I truly believe that most guys looking for these long term loans are the guys who are enthusiasts that stretch their budget to get one. True flippers lease and then flip; most easy formula. In Cali, they do not even pay sales tax if the transaction is done within 10 days.
PS: ...may be some of us did no marry right, LOL
Some may not be fortunate enough to have a 7 figure bank account, but are true enthusiasts who have enjoyed cars all their life and have gotten to a point where they can afford a GT3. They do not want to wait another 5-10 years to have the spare change in the bank to buy one outright, but because they really want it, the only option is to finance. In fact, I truly believe that most guys looking for these long term loans are the guys who are enthusiasts that stretch their budget to get one. True flippers lease and then flip; most easy formula. In Cali, they do not even pay sales tax if the transaction is done within 10 days.
PS: ...may be some of us did no marry right, LOL
+1. I think lease would be better for a flipper. No sales tax on unused portion of car. Buying outright and or financing you are on the hook for all the sales tax. Never actually thought about it until this post. But i guess that’s because im not a flipper. If i do ever flip i know the route now. Thanks lol
12-15-2017, 10:39 AM
#33
Race Director
Originally Posted by shapiroeric
LOL....I think #1 is "I just don't have time to drive it like it should be driven"
Yes, that is number 1. I only posted cliff notes version. You need to buy the book to get all the insider info. Please do not give away all the secrets. There are whole chapters devoted to each step including the Montana LLC.
12-15-2017, 11:20 AM
#34
Race Director
Anyone have recommendation for longer term (more than 72 months) loan for the GT3? I know alot of you may say things like long term loans are not good or that I can't " afford" the car. I know what I am do, I just want to maximize my monthly cash flow as I do not plan on keeping the GT3 long.
12-15-2017, 12:16 PM
#36
Addict
Rennlist Member
Rennlist Member
delete
12-15-2017, 01:39 PM
#37
Rennlist Member
Someone once told me, no matter what, you are borrowing the money from someone whether it be you bank account or a bank. If you can invest the said money that you would be withdrawing to buy a car and make more than what you pay in interest then this is a win its self.
12-15-2017, 01:57 PM
#39
Three Wheelin'
Easy formula.
Buy GT3
Hope to avoid stock market crash in meantime.
Sales tax? Under $10K hopefully or register in Montana LLC.
Drive 6 months. Try and hit up one cars and coffee per month. Plan routes with least amount of miles driven.
After 6 months, market hopefully still hot. Mileage under 2K.
Start feeler thread on GT3 forum. Get harassed and buy RL membership.
List for sale. Try and recoup sales tax, clear sidemarkers, and front end PPF.
Take some flipper heat. Explain wife wants it sold or have a house to buy. Kids going to college or business opportunity.
GT3RS on horizon.
Repeat above
Attachment 1272700
Buy GT3
Hope to avoid stock market crash in meantime.
Sales tax? Under $10K hopefully or register in Montana LLC.
Drive 6 months. Try and hit up one cars and coffee per month. Plan routes with least amount of miles driven.
After 6 months, market hopefully still hot. Mileage under 2K.
Start feeler thread on GT3 forum. Get harassed and buy RL membership.
List for sale. Try and recoup sales tax, clear sidemarkers, and front end PPF.
Take some flipper heat. Explain wife wants it sold or have a house to buy. Kids going to college or business opportunity.
GT3RS on horizon.
Repeat above
Attachment 1272700
12-15-2017, 02:27 PM
#41
Someone once told me, no matter what, you are borrowing the money from someone whether it be you bank account or a bank. If you can invest the said money that you would be withdrawing to buy a car and make more than what you pay in interest then this is a win its self.
12-15-2017, 02:38 PM
#42
Why would I pay cash for a car when I can purchase Bitcoin instead? Sub 3% loan to buy a GT3, park it in the garage, not drive it while I stay glued to my monitor tracking Bitcoin share prices is the way its done these days!
12-15-2017, 05:25 PM
#44
Race Director
Originally Posted by Akunob
Why would I pay cash for a car when I can purchase Bitcoin instead? Sub 3% loan to buy a GT3, park it in the garage, not drive it while I stay glued to my monitor tracking Bitcoin share prices is the way its done these days!
But then you have to consider what worse you can do with the stupid-quick winnings too.. there is always a smarter option.
12-15-2017, 05:34 PM
#45
My plan - pay cash, drive the shiiite out of it, leave the smoldering remnants to my son in the will.