Those Who Have Financed - How Much Have You Put Down?

Ghost -

I have bought a few outright - but most of the time It really depends on the interest rates at the time. If you can get good interest rates I would not put any down on it - put that money into working for yourself in the market / funds, investments, etc. The newer the car the better the interest rate (typically). If you are buying from a large dealer - find out what rates the companies they are using are getting.

I typcially use one of my personal banks - I call the personal banker of each and find out who gives me the best rate - they all have some flexibility over what they advertise - depending on the amount and your bank status. (also the rates change daily).

There are also a few tricks you can do as well - Let's say you are buying a car which you plan to keep for a long time or something that you believe you can flip and make money/investment. Ask the bank if they would do a 4, 5 or 7 year loan - typically they will talk about a 3 year with used cars. Most banks - if you are talking over 70K - 100K for a car you can play with them on a 5+ year loan. The most I have seen at a bank was a 7 year (that was for 150K car)

So there are a lot of options - and reasons to do little down - or a lot down.

Hope that gives you some thougths...

Rich

 

Vik,

Check out www.peoplefirst.com

I've heard a lot of great things about them and their rates are awesome. Incidentally, I've never put anything down on a car loan but I wouldn't recommend putting a lot down because it's a depreciating item and the cash is probably much better used elsewhere.

 

peoplefirst is now capitalone.
By far the easiest and best loan I have ever had.
If you are a tier 1 credit you will ahve a check for up to $75K at your house by tomorrow

 

Fantastic service. They base the loan on your credit and is not vehicle dependent. I have used them twice and actually have a current loan through them on a Porsche.

 

VIK

IF YOU OWN YOUR OWN HOUSE OR IF YOUR PARENTS WOULD DO IT FOR YOU..

DO WHAT I DID FOR MY FIRST FCAR

GOT ME A HOME EQUITY LOAN...4.75% (2002)

TOOK OUT UP TO WHATEVER YOUR CREDIT LINE IS OR CAR SELL PRICE

INTEREST IS TAX DEDUCTABLE

CAN PUT MORE PRINCIPLE ON THE PAYMENTS TO QUICKEN THE LOAN


MY .02 CENTS..

GODD LUCK BUDDY,

BRUCE

 

I got lucky and caught my 308 at a dealer. I traded in my Honda Prelude got $14k for it, I put $4k down and financed $10k. Only $100 a month car payment, but I paid it off in a couple months.

 

Applied for $40,000 loan for 30 months for a 1991 C2 Turbo and got approved upto $60,000 at 4.50% and with direct withdrawl got it down to 4% for 36 months,all that in less then 24 hrs,Capitalone all the way baby,wink.
Hope that helps
Yasir

 

Most lease companies that do business in our market want 30% down on high end sports cars because there is a tendancy for the owners of these cars to....ummm.....errr.....shall we say.....impact an immovable object from time to time.

It is somewhat common apparently and they look at it as a good way of protecting themselves in that event.

 

I think 4.5 is really good - I am working on finding a Gallardo - and a few weeks ago started preparing my banks for a quick transaction (that way they are ready when I find it) - I had ranges from 4.4 to 5.0 - So 4.5 is really good. There is absolutely no issue with going to a smaller bank - sometimes they are more aggressive due to the bigger competition. Also if you belong to a credit union - they are a great place to start as well. (CU's might have more issues on the bigger car loans due to size - but the bigger CU's usually have the best rates and terms.

The mention of a Home Equity is a great idea (that was mentioned a few times) - not only are you looking right now at HE lines in the 3% - 4% range - but as mentioned you get to (in most cases) the interest write off.

I know KDS mentioned that some banks will require a down payment (sometimes up to 30%) - you may run into this in certain geographies (large cities, etc.) - but if you look around - you will find lenders that will not require any down - if you want to go that route.

Being that the banking industry is very regulated - you are pretty safe with any FDIC bank (small or large) - look at the small print - some banks are doing adjustable 5 years and stuff like that - but just stick with the standard fixed 3,4,5, or more car loan and you will be fine.

 

Whatchya buy'n??

 

Ok so now you are on the right track ... Give it up - what are you looking to buy there Mr. Ghost... I am assuming now that the car is new from what I am reading... :O

 

The cheapest financing rates I'm aware of are in the 3% - 4% range through the brokerage firms. You have to secure the loan with cash, stocks, bonds or other types of securities. However, for those with an investment account or a fair amount of cash, CD's or money market it's pretty easy and common to take a loan against it. (I'm not talking about margin)

 

Ghost,

I just went through the same thing.. I applied through Lendingtree.com and got a response from HSBC and CapitolOne (ex Peoplefirst). I went with HSBC because they gave me a fantastic rate with no catches... 100k at 4.79% for 60 months on a '99 car. With a rate like that I didn't even bother putting anything down. CapOne had a good rate as well, but they max out at $75k. With these rates I'd try to do as little down as possible and maybe even stretch the term out as long as you can. You can always pay it off early. I've seen some places offer up to 10(!) years.

-R

 

Although borrowing from an equity line is great under most circomstances. If you are not planning on paying it off within a year it could be dangerous. Equity lines have gone up from 4.0% last year to over 5.25% which is still good. Remember that most equity lines are tied to the prime rate. But most equity lines have no caps and if rates go higher you can pay north of 6% or 7%. within the next two years. If you can get a fixed rate car loan for 4-5.5%. Why take the risk .I would think that that would be the best bet right now.
I have had two loans with people first(now capital one) absolutely love them. I paid both of them off about have way through the term.

 

At the very least you have to give us a hint or tell us if the 355 staying or going? If it is going, then we know another F Car is in your sights. Good luck

 

Being a little bird on the net(or wire), I think I have a good idea

 

As an owner of two f-cars and in the process of buying a third. Hold on to as much cash as possible. Your going to need it to keep them going down the road.

Rick