NNN Investment

I used the payment saver as well. Great program but one accident loses all the positives being that you will take a 10-15% hit on trade. A lease you lose nothing.

Cayman7

yes, that is a definite risk, just like with any car purchase

NNN Investment

Also since Penfed has a cap of 100k you can use Logix Credit Union. 3.24% for 84 mos. Only other option I know of is Woodfield. 120 months at 6%.

kayjh

Do people really finance their Porsches over 10 years at 6%? I'd be afraid to look at the total cost of ownership including interest!

NNN Investment

It's not for the person that would keep it 10 years. It's for ownership in an exotic where you keep for one to two years then flip into another one for minimal cost. Not for everyone.

KenTO

Porsche 911s are not exotics (except 911R and GT3).

PJ Cayenne

That is a fantastic idea. I just confirmed your numbers on the Penfed "payment saver' payment calculator. I was a member, got right into the website. It's almost like you are financing your own lease. So a lower residual, likely same start up costs (actually no security deposit and $1,000 bank fee will go into the car's equity) and lower payments. I think you are correct, there is an chance for equity.
The only downside that I see is I retain the ownership risks in an accident situation. However, I believe diminished value is now commonly pursued to mitigate this issue. I don't see this car being worth less that $58k in three years. Let me see if I can make this happen. Thanks very much C7!

Cayman7

Yeah, none of the BS bank fees and such is another benefit. Personally, I think you're going to come out way ahead with PenFed, barring something fairly unlikely like a significant accident. If you think you may be >$10K ahead with PenFed even an accident probably wouldn't eat that up entirely.

I first heard about PenFed about 8 or 10 years ago on a Nissan 350Z forum when my wife was driving a Z. It's been a great option for me since then, glad to pass on the info!

PJ Cayenne

I'm leaning towards the 3 year/1.74% deal. Payments are higher, but if I want to keep the car, refinancing a 3 year old car would be easier than a 5 year old car. Probably would just pay it off at that point, but better to keep the option of a lower rate three years from now.

I'm just curious about what the amortization would look like for the first two years. Sometimes I get so stupid in love with something new that comes out, I need to wiggle out of a one or two year old car.

I refi'd a BMW with them about 6-7 years ago. Worked out well. I just looked up my account and I've got $15 bucks just sittin' there!

Cayman7

see my post #14 in this thread https://rennlist.com/forums/991/9805...-question.html for a link to a balloon loan calculator that provides an amortization schedule. That might help you decide on the term.

And yeah, I think I have about the same amount in my PenFed account

PJ Cayenne

I can live with the amortization schedule. I took the three year deal. How can you turn down 1.74%? If for some unexpected reason the car needs to go, I may be several thousand out of pocket. Much better than a lease. By the way, I'm approved already.

A bit of drama though, I'm not convinced the dealer secured the car. I'll know tomorrow.

NNN Investment

I think the big negative using penfed versus a lease, you have to pay all sales tax upfront. That's what I'm struggling with.

PJ Cayenne

I've got a valuable trade in my deal. That helps reduce a good portion of the sales tax.

NNN Investment

Got it. My trade was done at my buddies dealership. It's a shame that the tax savings can't be transferred to any dealer.

Needsdecaf

Tax savings on a trade is a state statute. Nothing to do with transferring to any dealership. Your state either allows or not.