How much are you guys putting down on your BRZ?

[Enemies]

I'm planning on financing. I've never financed a car before though and it seems like different car models have different rates (at least if you're financing from a dealership). I'm not expecting Subaru to be offering a super-low percentage on the BRZ. My bank car loan rates are a joke. Never done business with a credit union. Not sure where to turn.

Going to have to do some research on financing before the car comes in. I'd like to keep car payments somewhere in the $500-$600/month range. Will probably put a big enough down payment down to make sure the payments fall in this range.

[NRGBalanced]

Originally Posted by A Gomez

Maybe I misunderstood something what I read in other threads. When I said liability insurance, I assumed liability = debt, so I thought there was some additional insurance charge to a car you do not own (the fianancing company has the lien, right?). I did not mean the general liability (property damage, hurting/killing persons, etc).

Do you mean GAP coverage/insurance? That will cover loan payoff in the event that the car is totaled and your insurance collision coverage doesn't give you enough money to pay off the loan. It usually adds a few bucks a month to a loan payment if you get it through your lender.

[FREDUKE]

Liability or full coverage? which is smarter?

[Enemies]

Hope for the best. Prepare for the worst.

[ashtray]

Originally Posted by hooge

1000$ preorder fee
probably 5k down the day it comes out
can't sell my car before buying a new one due to work, so going to swing it with the dealer to drop off 5k more when my car sells.

Yeah, let us know how that works out for you. I imagine the dealer to reply "Ok, like layaway? You pick up the car when you've fully paid/financed for it."

At best you can maybe finance the whole thing and then refinance putting $5k down after your other car sells.

[Lytheum]

Originally Posted by Draco-REX

I'll be trading my car for the BRZ even though I owe the majority of the value. The reason is because in OH, the full value of a car being traded in (regardless of any loans) is subtracted from the value of the new car to calculate tax.

i didnt know this about ohio! i was a little worried about getting less for my trade then i owe. if this is the case the tax savings may make up for the little bit of negative equity.

hmmm...going by nada guide i may actually get about $2k more then i owe. it is about the same as KBB. edmunds true value or whatever it is shows a value way lower.

[ashtray]

Dealers use actual recent auction prices to appraise trade ins. Also in my experience dealers have offered 60% of the trade in value listed online. One dealer suggested I try Carmax to sell my car. Carmax gave me 20% higher than the dealer - and the dealer actually drove with me to Carmax and drove me back to their dealership to finish buying the new car I was getting.

[A Gomez]

I am still not sure if I am going to buy one. I am not buying a FR-S, but BRZ is still an option. I would definitely do a test drive and would not do a leap of faith. And if I am buying, it will be 100% up front. That's what I have always done and would not do it any other way.

[slizoth]

Originally Posted by A Gomez

I actually disagree. Security is not costing you extra money. What it is really just loss of "investment opportunities". If you were calling not making $1M you have not earned (because you did not spend your saving of $25 - 30 K on gambling, stock in emerging markets or commodity trading) costing you money, then you would be right.

That's called Opportunity Cost, check it out.
http://en.wikipedia.org/wiki/Opportunity_cost

[fistpoint]

Originally Posted by tranzformer

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.

Show me a high yield savings or CD that is over 1.9%? And that's assuming people get approved for that rate. Assuming they do, where are these CD's and accounts?

There is maybe 1 or 2 banks in the US offering 2%, which makes the process moot. CD's also are around 1%, half of what your APR for the loan would be in the best scenario.

You'd have to find the absolute best savings or CD just to break even after paying the taxes on the gains. All that effort for what would amount to mere dollars saved.

[aphonic]

Originally Posted by fistpoint

Show me a high yield savings or CD that is over 1.9%? And that's assuming people get approved for that rate. Assuming they do, where are these CD's and accounts?

There is maybe 1 or 2 banks in the US offering 2%, which makes the process moot. CD's also are around 1%, half of what your APR for the loan would be in the best scenario.

You'd have to find the absolute best savings or CD just to break even after paying the taxes on the gains. All that effort for what would amount to mere dollars saved.

Exactly. So many people here are mentioning scenarios that sound absolutely great on paper, but in practice are nearly impossible for most people to execute on.

I say do what's best for your situation based on what you've got. If you're young, ask your parents or older friends for some advice - they'll know your situation better. Don't just take the words on an internet forum from a bunch of people in completely different financial situations than you.

[fistpoint]

Originally Posted by 86fanatic

Talk to your bank, there are 3%+ guaranteed rate return funds out there even today. There are plenty of relatively safe stock investments which pay 3%+ dividends a year as well. There's plenty of 1.7% 5 year CDs out now, which are considered the safest but also tend to have a lower return.

I'll say it again, if you have good credit with the lending situation what it is today, paying cash for a car makes no financial sense.

Right. But people must still have an APR lower than these dividends, stocks, savings and CD's. Most people won't be getting under 3% APR I think.

For those getting above 2-3% APR it makes sense to pay in full rather than the gamble and hassle of the investment route and all the paperwork with it. If the returns were double the APR then t would be worth the effort.

I'd like to point out that a 1% return on a $1000 CD is mere pennies over $10 earned after a year. Using a $5k down payment and borrowing $20k means we're talking about just over $200 a year in investment returns for every 1% you were lucky enough to find. Subtracted of course from the APR %. Pocket change difference.

[tranzformer]

Originally Posted by fistpoint

Show me a high yield savings or CD that is over 1.9%? And that's assuming people get approved for that rate. Assuming they do, where are these CD's and accounts?

My local credit union's rate is 2.15%. That is with no risk. Want to increase your risk? You can definitely go higher based on how much risk you are willing to take. Please don't rely on advice from an internet forum, use a financial advisor. I am sure they can get you a better investment rate than that. Hopefully closer to 6-7%.

Originally Posted by fistpoint

You'd have to find the absolute best savings or CD just to break even after paying the taxes on the gains. All that effort for what would amount to mere dollars saved.

I prefer having cash available rather than sinking +$25k into a car that will loose value as soon as I drive it off the lot. If you want to sink cash into the BRZ, go ahead. I would rather keep those funds available to invest or for an unexpected event.

[S2kphile]

Originally Posted by fistpoint

Show me a high yield savings or CD that is over 1.9%? And that's assuming people get approved for that rate. Assuming they do, where are these CD's and accounts?

There is maybe 1 or 2 banks in the US offering 2%, which makes the process moot. CD's also are around 1%, half of what your APR for the loan would be in the best scenario.

You'd have to find the absolute best savings or CD just to break even after paying the taxes on the gains. All that effort for what would amount to mere dollars saved.

True saving/CD's APR currently suck plain & simple. It's better to invest it elsewhere. I am gonna finance the car; even though, I have the funds buy it out right because I want to build credit and in this market credit history is everything and of course for the unexpected.

"Prepare for the worst, Hope for the best."