How much are you guys putting down on your BRZ?

[tranzformer]

Originally Posted by fistpoint

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 am already pre-approved for a auto loan rate for 1.9%/48mo. I would be stupid not to do that. Leaves my $25k in the bank and will only cost me ~$20/month in interest. I am easily making more than $20/month with my investment of that money currently.

So all this doubt is probably coming from younger guys in high school/college/new grads who don't have much credit/good credit and wouldn't be able to get a good rate. There are however some on here who have families and really don't want to carry "debt" as they have a different mindset regarding how to use their funds. I can respect that. But not sure what your point is fistpoint. You just seem to be arguing for the sake of arguing when the math does not support your side.

[fistpoint]

Originally Posted by tranzformer

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%.

6-7% not a chance...

Originally Posted by tranzformer

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.

No one has said they were spending all or even most of their available cash to buy the car outright. That would be absurd and foolish.

Originally Posted by tranzformer

I am already pre-approved for a auto loan rate for 1.9%/48mo. I would be stupid not to do that. Leaves my $25k in the bank and will only cost me ~$20/month in interest. I am easily making more than $20/month with my investment of that money currently.

Well obviously your scenario doesn't apply to everyone here. Not everyone has access to that credit union, and some of us prefer to have a local brick-mortar bank instead of online only, which is where you find the highest rates.

My local banks offer .01%(yes, .01!!!), while most others offer a whopping .05% Then there is this one individual local bank that does .598%, almost 12 times higher than the average. It's that or online for me.

http://www.money-rates.com/savings.htm

[tranzformer]

Originally Posted by fistpoint

6-7% not a chance...

I am.

[dori.]

Originally Posted by Turbowned

I'd like to do ~$5,500 down. ~$1800 of that will go to the great state of Taxachusetts (6.25%, assuming MSRP of $28,500 after destination), so the remaining $3,700 will come off what's left. Doc fees and registration should be about $500.

sheeeeeit... you're complaining about 6.25% sales tax? Try 8.3% here in NY. and if I buy the car in NYC (which I'm not thank god) it would be 8.8.

I'd take 6.25%

I'm probably going to see what I can get for my current car. If the dealer is going to give me BS (quoted at 40% of blue book, so 12-13k, bullshit for a car that's basically brand new and only has 7k in 8 months of driving) then I'll try to sell it privately.

Then just finance the rest. I'm going to start shopping around now for rates. I love the crazy talk about 2% interest cuz I know that I'll never be able to get a rate that low.

[MrBonus]

Both discussions have merit. A car is an illiquid asset so if paying cash is going to empty your savings, a loan, especially one with a very low rate as are currently available, is the financially prudent move.

As for investing, the return on equities have far exceeded the cost of interest on any normal car note over the past three years and will most likely continue to do so as long as interest rates stay historically low.

[fistpoint]

Originally Posted by MrBonus

As for investing, the return on equities have far exceeded the cost of interest on any normal car note over the past three years and will most likely continue to do so as long as interest rates stay historically low.

Again, assuming the person qualifies for those low rates. People with bad credit or little to no credit history because they always use cash won't do better than the APR they qualify for.

[merlin2111]

If I can get a loan with no prepayment fines then I will put down as little as possible. If I can not get that then I will probably put down 50% of the OTD cost. I know it is not the smartest move but I hate monthly payments on anything so the lower they are and the shorter the loan the happier I will be.

[Giccin]

Originally Posted by dori.

sheeeeeit... you're complaining about 6.25% sales tax? Try 8.3% here in NY. and if I buy the car in NYC (which I'm not thank god) it would be 8.8.

I'd take 6.25%

I'm probably going to see what I can get for my current car. If the dealer is going to give me BS (quoted at 40% of blue book, so 12-13k, bullshit for a car that's basically brand new and only has 7k in 8 months of driving) then I'll try to sell it privately.

Then just finance the rest. I'm going to start shopping around now for rates. I love the crazy talk about 2% interest cuz I know that I'll never be able to get a rate that low.

8.775% here. :<


But as for my contribution to this thread.

I wanted to drop $15kDP for this car and make small payments for 2-3 years.

Sell my baby Yaris privately and use that to pay a little more than I want to for the first year or two. Then the rest will be from work.

Of course this is for the next year model or after.

[samuelbentt]

Originally Posted by just86

how good of a credit score to qualify for 1.99% 48 months?

To quality, you must have minimum 750 credit score. Having a good credit score is necessary in order to take advantage of the offer, regardless of whether financing through the manufacturer or through an outside bank or credit union.

[ajc209]

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.

YOu guys are lucky to get 1.99% loans. THe best We have here in the uk is about 6% on loans over £7500. The best saving are 4.2% TAX Free. So unless I take a gamble on the stock market, the lowest cost option for me is to buy the car outright with no loan. The second best option is to take equity out of the house (if you have it) and take advantage of the low morgage interest rates.

So i'm buying my £27,345 GT 86 outright. Sound crazy to you guys I bet.

[brufleth]

Originally Posted by ajc209

YOu guys are lucky to get 1.99% loans. THe best We have here in the uk is about 6% on loans over £7500. The best saving are 4.2% TAX Free. So unless I take a gamble on the stock market, the lowest cost option for me is to buy the car outright with no loan. The second best option is to take equity out of the house (if you have it) and take advantage of the low morgage interest rates.

So i'm buying my £27,345 GT 86 outright. Sound crazy to you guys I bet.

It doesn't sound crazy except that £27,345 is a lot of money to have available to buy the car. That's good for you.

[Future]

Canada (Quebec) taxes : 5% + (9.5% tax on top of the first one)... Somebody kill me. Oh and interest rates @ 5.99+%

Will probably be putting 7k deposit... once the price comes out.

[GodSays]

Where are they giving out 1.99% loans? I have excellent credit and browsing online at the CU/Bank and best is around 3.99%

[ajc209]

Originally Posted by brufleth

It doesn't sound crazy except that £27,345 is a lot of money to have available to buy the car. That's good for you.

Well where I could have been paying back a car loan over the last 3 years, but instead I kept my swift and have been putting the money into a saving account instead.... ready to buy a new car when I have saved enough. Lucky for me the GT 86 was delayed enough, otherwise I would have taken a loan No way I would delay gettnig one of these

Really if you have a morgage you are effetively borrowing at whatever % the morgage is even if you buy the car outright! sicne you could have paid it off and saved some interest on that.