How much are you guys putting down on your BRZ?

[SteelReign]

Originally Posted by tranzformer

I keep my car for a long time as well. Current car is +10 years. But I will take advantage of interest rates and free cash. I'd rather have the banks get hit with the inflation. Plus makes me more liquid.

Take the $25-30k you would pay for the car. Get a 1.99% loan for 4 years. You already have the money to pay the loan off outright. Then pay the monthly loan while you invest or leave the money in a CD/high yield savings account. Gives you money to use incase a family member gets sick, house needs a new roof, water heater breaks...etc. Why leave $25-30K tied up in a car that is depreciating? Not to mention inflation.

Where can you get more than 2% interest guaranteed these days? All the "guaranteed" investments like CDs, Money market accounts and savings accounts have barely 1%.

[eikond]

Originally Posted by zoomzoomers

You never heard of a negative amortized loan?

Sure, I've heard of neg. am. loans.. I've written them.. But they are still simple interest loans. You still incur interest in the same fashion as any other simple interest loan.. The difference in a neg. am. loan is that you are not required to pay the full interest amount each month. Rather, you can choose to pay less than the full interest due and have the unpaid interest amount added to the principle amount. This causes your principle amount to increase.. hence it's a negative amortization.

Once again, the theory of upfront or front-loaded interest is a common misconception.

[zoomzoomers]

Originally Posted by SteelReign

Where can you get more than 2% interest guaranteed these days? All the "guaranteed" investments like CDs, Money market accounts and savings accounts have barely 1%.

Not guaranteed, but have you seen what the market has been doing lately? I've easily earned in the double digits lately and I'm not even really trying to.

[tranzformer]

Originally Posted by SteelReign

Where can you get more than 2% interest guaranteed these days? All the "guaranteed" investments like CDs, Money market accounts and savings accounts have barely 1%.

Depends how much risk you want to take. I know of a few CD accounts that will require 4-5 yrs but pull just under 2%. Depending on the account you can still have access to your account.

If you want more risk, you can easily pull more than 2%. I'm not here to be your financial advisor but you should be able to do better than 2%.

[86design]

Originally Posted by KaliKev

How about this question, what monthly payments are you guys expecting?

im probably looking at $380-$420 the most..and thats actually really really cheap...lol

[Longhorn248]

Originally Posted by ayau

let's us be realistic here, do you think the people who choose to go for a loan will really use the cash saved as an investment opportunity? i think we all know the answer to this.

Based on the average person I would say no.

[86design]

Originally Posted by ayau

let's us be realistic here, do you think the people who choose to go for a loan will really use the cash saved as an investment opportunity? i think we all know the answer to this.

of course not...lol

[86design]

Originally Posted by powertrip

I never put any money down on cars, the rates are generally much better than other forms of debt (except my mortgage) so ill gladly take the loan and pay it over time. 2-4% right now is the normal rate on loans, and for you younger guys, thats ridiculously low for auto debt. I prefer to keep my funds in the bank and invested and utilize my finances to carry some leverage.

also depends on your credit score...and your finances...but i'm guessing you have perfect credit and your finances are on top!

[dookie11]

Hey guys, when say "loans," are u referring to auto loans like from a CU/bank, or are u talking about financing through the dealership?

[Sully]

Originally Posted by ayau

fyi, even if you choose a 5 year loan, you can pay however much you want and finish the loan in less than 5 years. you just need to at least make the MINIMUM monthly payments. the quicker you pay off the loan, the less interest youre giving away.

Assuming your loan allows that. Some are for principal+X years interest. Still liable for X years interest, even if you pay it off quickly.

[tranzformer]

Originally Posted by dookie11

Hey guys, when say "loans," are u referring to auto loans like from a CU/bank, or are u talking about financing through the dealership?

I mean a auto loan from my own credit union since I know I can get better terms than the dealer. The dealer uses a bank anyways. Except when you finance through them, you aren't necessarily getting the best deal that you can (unless it is some special like 0% 36 months). Most of the time, you can get a better deal by finding your own loan. But YMMV. I like being approved prior to looking at a car.

[tranzformer]

Originally Posted by Sully

Assuming your loan allows that. Some are for principal+X years interest. Still liable for X years interest, even if you pay it off quickly.

I have never heard of that or experienced that personally. All of my loans allowed for you to pay off the loan early without any fees or penalty.

[dsgerbc]

Didn't we just have this kind of thread just a day or so ago?

[tranzformer]

Originally Posted by dsgerbc

Didn't we just have this kind of thread just a day or so ago?

Yeah this thread: Best place to get an auto loan