Finance Rates
02-12-2019, 12:31 AM
#31
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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.
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.
02-12-2019, 08:29 AM
#33
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Appears as though Lightstream is the best deal going right now.
02-12-2019, 09:24 AM
#34
Race Director
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 won’t 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 I’m 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 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.
02-12-2019, 12:55 PM
#35
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 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.
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 I’ll probably be ahead $4-5,000. And that few thousand dollars invested over 20 years will make even more. That’s 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 I’m not retiring for a while I don’t worry about it.
02-12-2019, 01:38 PM
#36
Race Director
This thread has taken an interesting turn. And I agree. Nothing wrong with paying cash. However, I don’t have $60,000 laying around in a savings account or under my mattress. I wish I did. It’s 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 40’s that is not where I’m at. I’m 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 I’ll probably be ahead $4-5,000. And that few thousand dollars invested over 20 years will make even more. That’s 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 I’m not retiring for a while I don’t worry about it.
02-12-2019, 03:47 PM
#37
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02-12-2019, 03:50 PM
#38
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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.
I'd MUCH rather pay cash, but it'll be paid for over time, and then it'll be mine.
02-12-2019, 03:59 PM
#39
Three Wheelin'
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).
02-12-2019, 05:23 PM
#40
Burning Brakes
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 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.
02-12-2019, 05:30 PM
#41
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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 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.
02-12-2019, 05:40 PM
#42
Burning Brakes
02-12-2019, 05:40 PM
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02-12-2019, 05:44 PM
#44
Drifting
02-12-2019, 05:47 PM
#45
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