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no i'm not getting suckered. i've never paid a penny over invoice for a car. in fact, i go in knowing the dollar figure the dealership absolutely can't go below without losing money...including the dealer holdback percentage. also, the dealer has no idea how i'm paying for the car when i negotiate price. i tell them i'll pay cash, i get the price, then i finance either through the dealer or my credit union, whatever is better.
You're not going to get 0~3% from a bank or credit union, they would lose money at those rates. You can get those rates from dealers, but only because they are front loading the interest.
If a dealer is willing to give you a 0% rate loan, they will be willing to give you additional cash-bonuses. You may think you negotiated the best price, but if they are willing to add a promotional rate on top of the deal you didn't.
Its funny how many people fall for this...
Quote:
Originally Posted by bradykp
i'm not a debtor, you don't know anything about me. as for earning >3% after taxes, have you ever heard of muni bond funds or many corporate bonds out there?
Yes and they aren't risk-free, they aren't even low-risk.
Quote:
Originally Posted by bradykp
businesses do this all the time. no reason why individuals can't as well.
Some businesses do it and businesses go bankrupt all the time, leveraged investments involve significant risks.
i'd start by simplifying things. but either way, it's still easy with your number of bills. your 4 student loan payments don't fluctuate correct? so instead of thinking of them as 4, just add up the 4, and you know the total that's coming out.
What is easy? I'd forget things if I tried to do it mentally. Plus, it takes around 15 minutes a month to maintain a ledger for a checking account, so I'm not even sure what benefit there would be to doing it mentally in the first place.
Anyhow, there really isn't anything to simplify and many of the bills and withdraws change from month-to-month. One month I may have credit bills totaling $1,400, another $800. One month I may transfer $1,500 to another account, another month $500...and so on.
That's not true. I just bought my dad a new car in September. My credit Union (Navy Federal Credit Union) gave me 2.15%.
I have no idea whether the Navy Federal Credit Union subsidizes rates or not, but I can't find a matching rate at any normal credit union. The rates are all around 4%. Rates are low right now, but so is the interest you'd get on a risk-free investment. Even the 2.15% is around 1% higher than you'd get in a CD right now.
One shouldn't be looking at nominal rates, but rather real interest rates.
Lastly, how odd is it that our society considers taking out a loan for something "buying it"?
I have no idea whether the Navy Federal Credit Union subsidizes rates or not, but I can't find a matching rate at any normal credit union. The rates are all around 4%. Rates are low right now, but so is the interest you'd get on a risk-free investment. Even the 2.15% is around 1% higher than you'd get in a CD right now.
One shouldn't be looking at nominal rates, but rather real interest rates.
Lastly, how odd is it that our society considers taking out a loan for something "buying it"?
Again, a lot different than what you'd find at any bank or standard credit union. I'm not reading the details, but how exactly does a credit union survive with negative spreads? There must be subsidies.
You should have bought a car for $28k that you could afford.
Again, a lot different than what you'd find at any bank or standard credit union. I'm not reading the details, but how exactly does a credit union survive with negative spreads? There must be subsidies.
You should have bought a car for $28k that you could afford.
It was a $67,000 car. I paid $45,000 cash, and financed $17,000. I could afford it just fine. I took the loan only because the rate was so low. I have enough cash to cover it, but I'm making more than 2.15% in the market.
I'm not complaining it's a financial burden on me, so I don't know why you're trying to give me financial advice.
All I'm saying is that there is a credit union here that gives under 3% loans.
Again, it was a gift for my dad. I wanted it to be something that he deserved. Which given all that he's done for me, is more than a $28,000 car.
It was a $67,000 car. I paid $45,000 cash, and financed $17,000. I could afford it just fine. I took the loan only because the rate was so low. I have enough cash to cover it, but I'm making more than 2.15% in the market.
Why someone would buy a $67k car is beyond me... People find the strangest ways to waste money. But regardless, why not take out more in this case?
Also, its always surprising that people speak about returns without adjusting for risk. You may be making more than 2.15% in the market at the moment, but it doesn't have the same risk profile.
In terms of the rates, I'll say it again, those aren't standard rates and I have no idea why that credit union has negative spreads. A normal auto rate is around 4%, the normal rate for a few year CD is around 1~1.5%. There is usually a good 3% spread between CD rates and the best auto rates.
Why someone would buy a $67k car is beyond me... People find the strangest ways to waste money. But regardless, why not take out more in this case?
Why are you getting so personal? Money is an unlimited resource. You can only waste something is limited.
I didn't work hard for the last 10 years to just sit on a boatload of cash. If I didn't want to use my money to buy nice things, I might as well retire now.
I didn't take out more because I have some personal rules about what percentage of an item I am willing to finance over a period of time longer than 30 days. I agree, the rule forbids me from having the best case outcome, but I'm stubborn like that.
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