Car loans from Bank of America

Like everything else in life including the pendullum on the grandfather clock. First as far to the right as it can go and then to the left. There is seldom a happy medium in our personal lives including politics, religion and money.

 

Dear Ferraristi,

+1


....really should have your " ducks in a row " before pulling the trigger.


OK...everyone is snickering away....THERE IS NO SUCH THING AS A 94' 360! The OP probably meant 04'.

Be wary though...the bank can always pull the rug from under you and call the loan in. Though this is happening less now as credit has eased.....slightly.


Shamile

Freeze....Miami Vice !

 

Good advise on above posts. Have money in hand first. Then buy.

 

+1 ...and BoA isn't "special".

 

Have CASH in hand. Then buy.

I know, we've thrashed the "borrowing money to buy a depreciating asset" topic to death around here. But you can either afford it or you can't. No shame.

I would like to know the interest rate of the loan. Banks typically (before the credit disaster of 2008) raped borrowers on used car loans. Add up the interest and you probably have a record price paid in 2010 for a 360.

 

I am sure you are right because above he does say it is a 6 year old car.
We are of course just having fun busting his b___s because he did type out 1994 not just the common 94 instead of 04 mistake. Either way its all good. I hope he knows its just in fun nothing serious.

 

LOL!

Okay watch out for a clean one.....

A guy stopped me at the apartment, saying 'watch this!" and proceeded to show me how he could open garage #29, mine is #30, with his Gate Fob.

My friend in #29 has a new 1098 and a BMW tourer...

I said "Close that door us Italian guys stick together"...and called the guy to let him know.

 

Jeesh, I made the same mistake twice when posting about this. I guess my excitement
about that car robbed some brain cells. The car is a 2004 360. Perhaps I have just
gotten my arms around the 20th century yet!

George

 

Yes, snicker away; I deserve it. I did mean '04 (2004) of course.

George

 

PenFed is great to deal with as well as having competitive rates. Anyone can get an account with them, just pay for a 1-yr subscription to the NMFA newsletter and open a savings account for $25 and you're set.

 

It would appear that most who took a mortgage out between 2006 and 2008 also financed a depreciating asset.

Russell

 

Don't worry, I accidentally dated a few checks last year as 1999......

 

the "private bankers" at these banks can considering financing on a vehicle regardless of age/mileage.

 

Although it was several years ago, I got financing thru JJ Best. All they do is arrange to finance older and classic vehicles. My loan ended up with Sovereign Bank. Got a good rate, too. 4.99% for 48 months.

 

George, mainstream banks will not lend on "exotics" regardless of age. At least I have never found one that would! They want commodity cars which have a Blue Book value, that can be wholesaled at a moment's notice (not a Ferrari that bidders will pick over & lowball).

I had to go through Woodside Credit to get a loan... 9.75% interest, 20% down.

 

As a business owner I have bought many things by calling my loan officer and asking him over the phone. I buy it he draws up the paperwork everything goes smoothly. Now I can see it being a bit different without a relationship with the person on the other end of the phone. But I can understand a person from the bank tells you that you can do something and you do. Then tells you that you can't have the loan. Now you’re up **** creek. I find it interesting that know one is pointing out Bank of America seems to have made a mistake. Again as a business owner I can't see anyone staying in business treating there customers this way.

 

Banks are essentially all crooks. I've never seen a banker make a deal and keep it, at least with my dealings with them. Every time they see an angle that makes them more money, they use it against you. I hate getting loans and so I try to pay cash for everything. Sometimes however, you have no choice.... But with a car you usually do.

Art

 

The irony of big banks refusing to lend on used exotic cars is that they likely have a far higher "floor" in value over the loan period than your garden-variety new GM or Ford. If the downpayment is higher than this floor there is little chance of the bank losing money in the event of repossession and wholesale.

If I were to make these decisions for a bank, to me it would be less risky to loan out $45k to buy a $90k used Ferrari than to loan out $45k on a brand-new $55k Corvette. But what do I know, up is down these days.

At least when you pay cash you miss the annoyance of monthly payments, as well as avoid falling into the trap of buying more car than you can afford. I have made a resolution to myself never to finance anything other than my house again.

 

I know in commercial lending it is much more straightforward than in dealing with the public. The larger the deal, generally better-prepared both sides are. In that type of lending both sides are pros of their respective sides and there is accountability for both parties. Both sides have a lot to lose. The borrowers have significant skin in the game to make sure the banks lose the least amount possible.

There have been a few banks fail so far that dealt in these types of loans but did so in a reckless manner (New Frontier Bank in CO for example). NFB was well-known for writing loans to applicants already rejected for various reasons by their competitors. Few within that sector of banking were surprised when they were taken over last spring. Growth while ignoring risk=eventual failure.

Dealing with a public, whose level of understanding regarding debt generally is "how much is the payment", means the banks can play games with mortgages or car loans. And many of the suckers go for it. I don't disagree that many of the "bankers" are crooks and shysters. There is pressure to do as much business as possible, and when the bank across town is writing loans like crazy the prudent lenders are squeezed out.

Hopefully the times are changing and people burned by too much debt learn the lessons they need. I am dubious of any long-term change though.

 

Since several have asked, the interest rate from BOA was 4.231% on a 36 month loan.
I put a considerable amount of my own cash into the car, and only needed a $40k loan.
I plan to have it paid off completely within 12 to 18 months.

I thought this was pretty reasonable to be honest. As I mentioned earlier the only hitch was the fact that the car is 6 years old, exceeding the "rule" of 5 years or less. Once this was resolved, the process went through with no problems at all. I had the check in three days.

George

 

I can confirm this. I am a civilian with no affiliation or servce history for me or any family member, but I paid 25 to get the newsletter and joined with no issues. It sounds too good to be true, but I secured the loan within a few days time.