best place to get auto loan?

[7thgear]

Originally Posted by dsgerbc

The choice of paying cash is unavailable to the OP, so....
As for saving-up to buy this car years from now - it's more of a personal preference. If one derives more pleasure from looking at the size of their savings/investment account compared to displeasure of driving some POS to work - do it. If anything, withdrawing hard-saved cash to buy a car is gonna be even harder decision, if you factor in the compounded interest you could've earned by your retirement on the withdrawn money

you are missing the point

there are two discussions going on in this thread.

the first one is financing strategy assuming a solid economical base. (ie good credit score, cash savings, jobs, etc). If a person has 20K in the bank, are they better off dumping that 20K into a car and save on future interestest NOW or taking out a loan and hope that the interest generated from equitity will equal or beat the interest paid on the loan, which gives the person greater financial freedom in a pinch.

the second discussion is that if you have no savings and you get shitty rates even with a co-signer, then maybe you should not be taking out a loan for a car, which does not, by the way, include your overall car ownership budget composed of insurance, maintenance, consumables and other unforeseen expenses (such as speeding or parking tickets).

america is the land of the entitled, the reality is that the majority that have things are barely holding on to them and would have lived a much happier life if they exercised patience and planning.

[Dave-ROR]

Originally Posted by Grimlock

OP, here's a tip:
What I've done in the past when financing a car is to take the loan out for the longest amount of time I can at the same interest rate. For instance if the interest is 3% for anywhere between 3 years and 5 years, I'll take the 5 year loan. Then I'll make payments based on it being a three year loan. This gives me the same interest rate as I would have gotten with the three year loan, but gives me the flexibility of paying less than normal if necessary (aforementioned emergency expense). If I pay the loan off in three years, then I didn't pay anything more than if I had gotten the 3 year loan to begin with.

I admit that it takes willpower to pay more than the bare minimum necessary on a long loan. A lot of people don't have said willpower, but it works out well if you do.

I do this as well. I paid off my new S2000 in less than 2 years, but took a 5 year loan because the interest rate was the same regardless of the term (up to 63 months anyways). I can do the same with the BRZ (if I spend all of the money I put in my car account and not save any of it for mods) if I want to. I'll likely stretch it to 3 years to have some mod/fun money.

[MarkRacerX]

I have done 10-15 car loans at my local Credit Union!

They ROCK!

Currently 2.25% on new/used cars and up to 72mos.

Credit Unions aren't regulated the same as banks, therefore can offer higher interest on accounts and lower loan rates :happy0180:

Of course unless you can score a dealer 0% deal or something insane like that. My 08' STi I had 63mo 0% through Subaru/Chase end of year deal.

Shop around!!

Good luck!

[dsgerbc]

Originally Posted by Subaruwrxfan

but there's plenty of mutual funds that consistently beat the S&P 500 (normally by a wide margin) while still having minimal fees and being dividend focused in order to minimize your taxes.

Living is easy when you believe in fairy tales.

Originally Posted by 7thgear

you are missing the point

My point is that the first line is irrelevant and the second is down to personal preference. Interest rate is just part of the price. If that's high enough - wait until it's lower (either via better credit getting one lower rates or buying used etc), but that's, again, down to personal preference.

[tranzformer]

Originally Posted by 7thgear

america is the land of the entitled, the reality is that the majority that have things are barely holding on to them and would have lived a much happier life if they exercised patience and planning.

Must make Canada the land of the entitled as well. You know entitled to socialized health care, education all that. Oh and I'm sure Canadian's aren't affected by debt either. :roll eyes:

The U.S. isn't the only nation buried by massive consumer debt.
Several recent studies have found that many Canadians are struggling with tens of thousands of dollars in credit card debt, and 90 percent of those surveyed felt that they were deeper in debt than they were five years ago.

One survey of 4,000 Canadians found that 28 percent of the respondents had no idea what the interest rate on their credit card was; 25 percent of the respondents had consumer debt between $10,000 and $40,000, not counting debt from mortgages; 53 percent of Canadians surveyed said they had no budget for their income.

http://www.consumeraffairs.com/news0...nada_debt.html

[Dave-ROR]

40k in CC debt. Holy crap. I've had CC balances of 20-30k before and it's scary to see, even though it's always been work related and I had the expense money there to pay it, but I can't imagine how depressing it would be to literally look at 40k in CC debt on a monthly basis.

[7thgear]

Originally Posted by tranzformer

Must make Canada the land of the entitled as well. You know entitled to socialized health care, education all that. Oh and I'm sure Canadian's aren't affected by debt either. :roll eyes:

would you bitch less if i said "north america" then? Canada's population is less than California, i really don't consider mentioning Canada when i talk about these things because it's a moot point. You guys will probably anex us round 2017, derp.

[engee]

Originally Posted by Subaruwrxfan

Three such funds are PYEQX, PDT, and FVD. And that's all the free investment opinions you're getting out of me, lol.

You guys are right, I did forget to compound interest. Without doing the math, you can probably get close to break even with a CD. But you are effectively locking in your money for 5 years. If you had that money to begin with, it comes down to whether you need/want to pay it all off in cash in the first place.

From doing a quick search on the funds you listed, only one of the three funds shows an increase in stock price over 5 years.

I'm glad we have been able to stay this civil in this thread. I would love to one day meet some of you guys in our BRZ's/FRS-S's and grab some drinks one day.

[dsgerbc]

Meh, I'll wait talking to Canadians about debt, until their own housing bubble collapses

[tranzformer]

Originally Posted by 7thgear

would you bitch less if i said "north america" then? Canada's population is less than California, i really don't consider mentioning Canada when i talk about these things because it's a moot point. You guys will probably anex us round 2017, derp.

Well I would also add that a lot of western Europe also suffers from credit card debt. So it isn't just a "North American" thing.


http://www.ft.com/intl/cms/s/0/02db4...#axzz1pg9t4en0

[hanabie]

thanks alot guys your opinions help a lot towards my purchase decision.

[Subaruwrxfan]

Originally Posted by engee

From doing a quick search on the funds you listed, only one of the three funds shows an increase in stock price over 5 years.

I'm glad we have been able to stay this civil in this thread. I would love to one day meet some of you guys in our BRZ's/FRS-S's and grab some drinks one day.

I'm not talking about the price of the fund, I'm talking about actual returns, which I said these funds paid in dividends (in order to minimize taxes). The returns for 2 of the 3 funds was actually over 20%. I'm glad it seems the BRZ crowd is a pretty mature group so far. :happy0180:

[alluringreality]

Originally Posted by engee

Without doing the math, you can probably get close to break even with a CD. But you are effectively locking in your money for 5 years.

Current CD rates mean that you are losing buying power due to inflation. Anyway, you're not really locked into a CD. You can either borrow against it or sacrifice a certain amount of interest to withdraw early. Personally I don't borrow money, so I don't have a credit history, and I was thinking about putting money in a CD and borrowing against it if I decide to get rid of the Impreza. The only point of borrowing on a CD is that I could get 2% interest (actually it's effectively higher than 2%) with no credit and it's reported to the credit bureaus if I eventually want to buy a house.

[bestwheelbase]

Originally Posted by dookie11

What shirt?????? I still have the grey 86 shirt and it's getting lonely in my closet

Sounds like you bought the cafepress version... We have teamed up to make a small run of proper screenprinted ones. If they're a success, we may do other small series of shirts featuring Hanzo's art.

Great conversation about car financing. Lots of great facts and opinions being shared respectfully.