Dan991

Highly doubt cars will go through anything like the recent housing crisis. Nobody expected to be underwater with their home. But with cars, almost everyone expects that they will be underwater for most of the loan period. Plus, ruining credit because you are underwater by 25k is very different from ruining credit because you are 500k underwater.

MJG911

I've got a 6 year loan on my cayenne and 7 year on my 911. I make payments on a 48 month amortization table on both of them, but its nice to have a cushion if I ever need it. Just like I pay 50% extra on my house payment every month.

JamieRich

I just bought a 2013 911s, 72 months zero down 2%. My logic, the car will more or less depreciate at the same rate the loan pays down. Push come to shove, maybe I am upside down $20k. Who cares, when money is basically free, I prefer to hold / invest my cash.

I save till it hurts and spend what ever is left over...I have enough left over to fund a toy.

X2Board

When you do ED on a new M3, that you also got for 1k over ED invoice, and go light on the options

Just sold my zero down, '15 M3, and pocketed $1200.00, after subtracting the 3% NC tax that I paid when I registered it. Drove it for 1 year and 11k miles. The difference almost covers what I paid in taxes on the 991.

ezdriver

I was just about to post a comment re your strategy. I think that the terms of any financed transaction [home mortgage or auto loans for example] and the debtor's payment plan ain't necessarily the same. I'm in the new home sales business and I explain to people all the time that a 30-yr loan can be a 15-yr loan just by doubling the payments. Even an occasional extra payment when possible will have a positive impact on the deal. One more comment ... it makes sense to finance a Porsche if one's income is commissioned based. Anyone who is successful in commission-based jobs employ financial strategies to manage their cash flow. Wish I could have paid cash for my Porshes ....

drmatara

Awesome deal...practically free money...I'd do the same thing

Fasttoys1

Good rate. At 1.49% I keep the cash & invest it $$. 84 month loan is not a big deal if you only keep the car for a few years. + I have a rule I never make payments on a car that is out of factory warranty.

c615586

+1 for PenFed. I financed my CPO Audi RS4 from them back in 2009 at 1.49% for 5 years and paid it off on a 3 year amortization table. I assumed I was going to sell it, but that car got under my skin and I've kept it for almost 7 years now.

I had a loan approval from Pen Fed for my CPO C4S, but the dealer ended up finding me a better rate through one of the banks they work financing deals with, so I didn't use it.

The Tesla folks have good results with Digital Federal Credit Union (dcu.org).

Lastly, if you or a close family member is a member of the armed services, be sure to check out USAA for loans and auto insurance. They have great rates available as well.

Dan991

You'd be done even quicker than 15 yrs if you doubled payments on a 30 yr mortgage

fast1

could have paid cash for car but making more on money in investments than the 1.49 I'm paying in interest.

Then you are doing a hell of a lot better than most of us. I recall reading a remark made by Mark Twain well over a hundred years ago which resonates with me: "It's not return on my money I'm interested in, it's return of my money".

GSIRM3

I hope your investments weren't in the stock market the last 10 days.

STG

I'd rather lose 1.49% in interest

Most of the time, the small time investor ends up getting the short end of the stick. I say better to invest in tangible assets rather than something and you have no control over. Other people playing games with your money.

DerekS

That's a smart rule when it comes to Porsches! Repairs are rarely cheap.

neurotic

del

jimbo1111

The rate of inflation is around 1.5% to 2%. So keeping money under a mattress. One losses through inflation. The 10 year bond is priced at about 2% currently and is veiwed as one of the most solid investments.
Our government has created an environment that is hostile towards savers through the inflation process. In order for people to move money around and create tax revenue. There are some very smart people at the top levels that know how to shape and steer the cattle. We are just along for the ride.