Interest rate at Porsche Finacial
10-09-2022, 05:28 PM
#121
RL Community Team
Rennlist Member
Rennlist Member
Always trust the advice of someone who stands to lose as much as you if things go south...
I've got CC's I haven't used in over 18 years but I keep them as it seems it helps the actuarial see you've got potential debt for years yet you manage it well (meaning I don't succumb to temptation since I don't use it). I don't have any debt, I pay everything every month and my credit is stellar. Don't need debt or feed the lenders to achieve a stellar credit rating, thank you. But I'm sure YMMV
siberian
I've got CC's I haven't used in over 18 years but I keep them as it seems it helps the actuarial see you've got potential debt for years yet you manage it well (meaning I don't succumb to temptation since I don't use it). I don't have any debt, I pay everything every month and my credit is stellar. Don't need debt or feed the lenders to achieve a stellar credit rating, thank you. But I'm sure YMMV
siberian
Last edited by siberian; 10-09-2022 at 06:01 PM.
The following 2 users liked this post by siberian:
Bluehighways (10-09-2022),
Ull (10-09-2022)
10-09-2022, 05:38 PM
#122
The PFS rate that I was quoted for my Touring was in the 6s so I passed. The car came in on Sept 28th and I wanted to get the car paid for by Sept 30th so my dealer could realize the sale in September so I just paid for the car in cash. Once I get the title, I'll probably look at getting a $100k loan on the car from a credit union hopefully with a rate in the 3s but at least I've have time to shop around.
10-09-2022, 05:52 PM
#123
Rennlist Member
The PFS rate that I was quoted for my Touring was in the 6s so I passed. The car came in on Sept 28th and I wanted to get the car paid for by Sept 30th so my dealer could realize the sale in September so I just paid for the car in cash. Once I get the title, I'll probably look at getting a $100k loan on the car from a credit union hopefully with a rate in the 3s but at least I've have time to shop around.
The following users liked this post:
rouxeny (10-09-2022)
10-09-2022, 05:55 PM
#124
Yeah, they call it a delayed new car financing loan. I've done it a few times with PenFed in the past where they cut me a check for the $100k (that was the max loan for PenFed) and then I send in the clear title. The car was $220k all said and done but I don't know that I want more than a $100k loan on it.
The following users liked this post:
AlexCeres (10-09-2022)
10-09-2022, 06:09 PM
#125
As for the FICO posts, it's true. On the simulator if I zero out my debts my credit score drops tremendously. Using the myfico.com membership. The simulator also states that if I keep the debt and make low payments monthly for two years to pay everything off my score increases. Besides the simulator, my credit score has dropped from paying off all debts. Regardless, it's stupid flawed logic IMO. Makes no sense. Either way those scores can kiss my butt, they won't sway me in any direction. They're good for credit monitoring. At the end of the day, an underwriter will see your credit and I'd be confident getting approved for anything regardless of a FICO score.
Either way, getting insta-approved for a $400k auto loan was a bit shocking at the time. My point was that I'm sure the PFS loan prior to applying assisted in that rather than a credit union/bank auto loan. BofA is a great auto loan lender but they don't fiddle with ADM/Mark ups. PFS will.
10-09-2022, 07:27 PM
#126
It’s stupid, but there are at least two aspects driving the fico score thing. First people without debt aren’t profitable to lenders so lenders don’t have any incentive to help them out extra. The all cash folks can feel special but they aren’t doing business here, so the other side of the business doesn’t owe them anything.
Second, the credit rating agencies are selecting for historical demonstration of past successful performance on similar terms. So the more larger loans you pay off, the more your “successful high water mark” is. Handling small loans or paying all cash doesn’t demonstrate (in their mind) the ability to responsibly handle a large installment (auto) loan over several years.
They don’t care about you. They are just running actuarial tables at population scale. But they probably aren’t entirely wrong that loaning $400k for a Ferrari (worth at least 250-300 on repo) to someone with a history of successfully paying off $200k loans is less risky than someone without any recent loans or debt or financial performance. Cash doesn’t leave a wake across the financial industry.
Second, the credit rating agencies are selecting for historical demonstration of past successful performance on similar terms. So the more larger loans you pay off, the more your “successful high water mark” is. Handling small loans or paying all cash doesn’t demonstrate (in their mind) the ability to responsibly handle a large installment (auto) loan over several years.
They don’t care about you. They are just running actuarial tables at population scale. But they probably aren’t entirely wrong that loaning $400k for a Ferrari (worth at least 250-300 on repo) to someone with a history of successfully paying off $200k loans is less risky than someone without any recent loans or debt or financial performance. Cash doesn’t leave a wake across the financial industry.
The following users liked this post:
Ull (10-11-2022)
10-09-2022, 07:37 PM
#127
RL Community Team
Rennlist Member
Rennlist Member
No it doesn't leave a wake, but those folks who don't borrow have other equity (like a home etc.) should an unforeseen emergency arise to put up as collateral rather than borrow to have a hypothetical credit rating.
My goal was to be debt free by 55, made it with 6 months to spare and I'm over 70. In over 15 years I've never cared what my FICO was etc. If don't have it I don't play; makes planning and saving etc. and getting it in the end that much sweeter. YMMV
siberian
My goal was to be debt free by 55, made it with 6 months to spare and I'm over 70. In over 15 years I've never cared what my FICO was etc. If don't have it I don't play; makes planning and saving etc. and getting it in the end that much sweeter. YMMV
siberian
The following users liked this post:
Ull (10-11-2022)
10-09-2022, 11:04 PM
#128
RL Community Team
Rennlist Member
Rennlist Member
I have been debt free(of any kind) for well over 20 years, have never carried a dollar of credit card balance for a single month in my lifetime and have never been late on a utility bill or otherwise.
One would think that my credit should be sky high, not. 735. I simply do not use credit of any kind and have a less than perfect credit score for that reason. Don't care cause I don't have the need to borrow money. I have lived below my means since my 20s. This has worked well for me and allowed for an early retirement while I see others my age in a rat race working at jobs they despise every day trying to service a stack of payment books every month. Can't imagine how awful that would be
One would think that my credit should be sky high, not. 735. I simply do not use credit of any kind and have a less than perfect credit score for that reason. Don't care cause I don't have the need to borrow money. I have lived below my means since my 20s. This has worked well for me and allowed for an early retirement while I see others my age in a rat race working at jobs they despise every day trying to service a stack of payment books every month. Can't imagine how awful that would be
siberian
10-10-2022, 01:24 AM
#130
Kick backs to the dealer. And they have a pretty solid understanding of the depreciation of their own products. These loans might have large numbers, but the risks are managed by world rated experts
10-11-2022, 11:42 AM
#131
I went with PFS two years ago at 1.9 but it doesn’t make sense at 6%
10-11-2022, 11:54 AM
#132
Last edited by jack_carls0n; 10-11-2022 at 12:05 PM.
The following 2 users liked this post by jack_carls0n:
AlexCeres (10-11-2022),
davidgriffith (10-11-2022)
10-11-2022, 11:55 AM
#133
RL Community Team
Rennlist Member
Rennlist Member
Only if you're buying this car to get the next one and believe you will have a "relationships" with a(ny) dealer.
siberian
siberian
10-11-2022, 01:52 PM
#134
Drifting
I thought people just take the PFS loans, pay for 6 months, then refi from a lower rate source and payoff PFS - the dealer still gets "credit" for the loan.
The following users liked this post:
shrimp money (10-11-2022)
10-11-2022, 02:13 PM
#135
. I’ll suggest to the finance guy and see what he says. They’ve been good to deal with at MSRP and I’ll be getting a 992.2 so it may be worth it to play along.