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-   -   Finance Rates (https://rennlist.com/forums/997-forum/1128582-finance-rates.html)

Big Swole 02-12-2019 12:31 AM

Got 4.05% for 63 mos. at my CU (LGE). They'd only finance 80% of the value of a 2012 though. No probs.

Had a LightStream loan prior to that. Very easy but higher rate for the 84 mo. term I got originally. Hence the refi with LGE.

o'bluetouring 02-12-2019 02:36 AM

Not a CU but we got 3.94% for 72mo from Bank of America last month when we purchased our car.

ryangambrill 02-12-2019 08:29 AM


Originally Posted by Big Swole (Post 15632850)
Got 4.05% for 63 mos. at my CU (LGE). They'd only finance 80% of the value of a 2012 though. No probs.

Had a LightStream loan prior to that. Very easy but higher rate for the 84 mo. term I got originally. Hence the refi with LGE.

Rates have definitely increased. Pulled this from LGE Website:2012 model year (purchases and refinances)4up to 48 Mo.$1,0004.70%Receive a notification when this rate changes63 Mo.$10,000 5.00%

Appears as though Lightstream is the best deal going right now.

Quadcammer 02-12-2019 09:24 AM


Originally Posted by dgjks6 (Post 15631357)


Same as doclouie said. You want you cash working for you. Not against you. W

ex year one I invest the 55,000, I make 10% - I get $5500, less every year after that because you wonít have the whole $55000
if I finance the entire amount I only pay about $6500 in interest over 5 years -

so so at the end of 5 years Iím still way ahead

its actually more complicated than that because you have to pay taxes on the gains

and it can be dangerous because you can end up upside down if you have to sell the car in the short term so I would not do it if I could not pay off the loan or I was only planning on keeping the car short term

I love it, everyone always makes 10% on their money every year like clockwork right? If so, hedge fund managers must be calling daily offering you jobs.

I personally can't stand debt of any kind. Maybe it will prevent me from getting wildly rich, but I don't care. I sleep better knowing that I don't have payments to worry about.

I tried the loan thing once, couldn't handle it, paid it after a year.

there is absolutely Zero wrong with paying cash as piece of mind is priceless.


dgjks6 02-12-2019 12:55 PM


Originally Posted by Quadcammer (Post 15633221)
I love it, everyone always makes 10% on their money every year like clockwork right? If so, hedge fund managers must be calling daily offering you jobs.

I personally can't stand debt of any kind. Maybe it will prevent me from getting wildly rich, but I don't care. I sleep better knowing that I don't have payments to worry about.

I tried the loan thing once, couldn't handle it, paid it after a year.

there is absolutely Zero wrong with paying cash as piece of mind is priceless.

This thread has taken an interesting turn. And I agree. Nothing wrong with paying cash. However, I donít have $60,000 laying around in a savings account or under my mattress. I wish I did. Itís all invested in something. So the money has to come from somewhere. Instead of taking money out of an investment paying more than the interest of the loan, it makes more sense to finance the car. If I was worried about being able to make the payment or retired thinking short term, I probably would pay cash. But still being in my 40ís that is not where Iím at. Iím think 20 years down the road.

Sorry, I used the 10% to keep the calculation simple. Also from articles like this (though I think adjusted for inflation average growth is 7%).

https://www.nerdwallet.com/blog/inve...market-return/

My loan was 4%. Going back since I have started putting away for retirement I have had on average more than 4%. Last year my lowest account was 6.96%. I just use the mutual funds the companies I work for pick out. Nothing special.

Over the 5 years of finance vs cash Iíll probably be ahead $4-5,000. And that few thousand dollars invested over 20 years will make even more. Thatís a couple months less I have to work until retirement.

If your investments over time return less than 4% I would find a new guy or find less risky investments. Again, this is thinking long term. Will the market crash again? Yes. Will it go back up? Well, it always has so I assume it will again. Since Iím not retiring for a while I donít worry about it.

Quadcammer 02-12-2019 01:38 PM


Originally Posted by dgjks6 (Post 15633711)


This thread has taken an interesting turn. And I agree. Nothing wrong with paying cash. However, I donít have $60,000 laying around in a savings account or under my mattress. I wish I did. Itís all invested in something. So the money has to come from somewhere. Instead of taking money out of an investment paying more than the interest of the loan, it makes more sense to finance the car. If I was worried about being able to make the payment or retired thinking short term, I probably would pay cash. But still being in my 40ís that is not where Iím at. Iím think 20 years down the road.

Sorry, I used the 10% to keep the calculation simple. Also from articles like this (though I think adjusted for inflation average growth is 7%).

https://www.nerdwallet.com/blog/inve...market-return/

My loan was 4%. Going back since I have started putting away for retirement I have had on average more than 4%. Last year my lowest account was 6.96%. I just use the mutual funds the companies I work for pick out. Nothing special.

Over the 5 years of finance vs cash Iíll probably be ahead $4-5,000. And that few thousand dollars invested over 20 years will make even more. Thatís a couple months less I have to work until retirement.

If your investments over time return less than 4% I would find a new guy or find less risky investments. Again, this is thinking long term. Will the market crash again? Yes. Will it go back up? Well, it always has so I assume it will again. Since Iím not retiring for a while I donít worry about it.

yes, of course, the long-term averages is roughly 7% for equities, but for any given 5 year period which may represent a typical auto loan term, performance is much more variable or potentially negative. it all depends on your risk aversion.

Chris M. 02-12-2019 03:47 PM


Originally Posted by Quadcammer (Post 15633221)
I tried the loan thing once, couldn't handle it, paid it after a year.

That's funny, I've done the same thing and I'm about to do it again actually. We'll see how long I last this time.

Big Swole 02-12-2019 03:50 PM

Some of us have no choice but to finance our dream cars.
I'd MUCH rather pay cash, but it'll be paid for over time, and then it'll be mine.

raidersfan 02-12-2019 03:59 PM


Originally Posted by Quadcammer (Post 15633829)
yes, of course, the long-term averages is roughly 7% for equities, but for any given 5 year period which may represent a typical auto loan term, performance is much more variable or potentially negative. it all depends on your risk aversion.

Equity values are also likely to move somewhat in tandem with performance car values. In a bear market, a lot of potential 911 buyers are not in the market. Look at 2009! The strong 997.2 values we see right now would likely drop 20% if we were to enter into a recession. The weekend car and vacation house are the second and third items to go (the mistress leaves on her own once she realizes you are broke).

Balr14 02-12-2019 05:23 PM


Originally Posted by Quadcammer (Post 15633221)
I love it, everyone always makes 10% on their money every year like clockwork right? If so, hedge fund managers must be calling daily offering you jobs.

I personally can't stand debt of any kind. Maybe it will prevent me from getting wildly rich, but I don't care. I sleep better knowing that I don't have payments to worry about.

I tried the loan thing once, couldn't handle it, paid it after a year.

there is absolutely Zero wrong with paying cash as piece of mind is priceless.

I'm like you. I save my money and pay cash for everything, even my house. I wish I had the balls to use credit and invest my money, but I have been burned too many times.

ryangambrill 02-12-2019 05:30 PM


Originally Posted by Balr14 (Post 15634394)
I'm like you. I save my money and pay cash for everything, even my house. I wish I had the balls to use credit and invest my money, but I have been burned too many times.


Originally Posted by Quadcammer (Post 15633221)
I love it, everyone always makes 10% on their money every year like clockwork right? If so, hedge fund managers must be calling daily offering you jobs.

I personally can't stand debt of any kind. Maybe it will prevent me from getting wildly rich, but I don't care. I sleep better knowing that I don't have payments to worry about.

I tried the loan thing once, couldn't handle it, paid it after a year.

there is absolutely Zero wrong with paying cash as piece of mind is priceless.

Thank you both for providing value to this thread.

Balr14 02-12-2019 05:40 PM


Originally Posted by ryangambrill (Post 15634413)
Thank you both for providing value to this thread.

Sorry. I was mostly curious. I'll go away now. But, I did get some valuable insight.

Big Swole 02-12-2019 05:40 PM


Originally Posted by ryangambrill (Post 15634413)
Thank you both for providing value to this thread.


LOL Well played!

Skwerl 02-12-2019 05:44 PM


Originally Posted by Big Swole (Post 15634135)
Some of us have no choice but to finance our dream cars.
I'd MUCH rather pay cash, but it'll be paid for over time, and then it'll be mine.

But half the point of having a fancy dream car is telling everyone how you paid cash and didn't think twice about it.

Big Swole 02-12-2019 05:47 PM


Originally Posted by Skwerl (Post 15634450)
But half the point of having a fancy dream car is telling everyone how you paid cash and didn't think twice about it.

I would love to be in the position to decide to brag about that, but unfortunately I'm not. Instead, I get to brag about transferring $1283.00 per month to my CU loan! LOL

:)


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