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Financing The Vehicle

Discussion in 'Prime Main Forum (2017-2022)' started by plow, Dec 29, 2016.

  1. plow

    plow Junior Member

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    Hopefully this will be of interest to those who are considering financing in part or in near full their purchase of this vehicle or another and hopefully others will find even better deals to share going forward.


    I took out a 36-month new car loan in the amount of $ 17,000. The remainder of the sale price, I paid in cash. I applied on-line at Lightstream, a division of Sun Trust Bank, Florida. (I think their cap is @ $ 25,000)


    The application took about 20 minutes to fill out on-line and it took an astounding 56 minutes to receive an approval email. Rate at the time: 1.74 % fixed, no fees with direct monthly withdrawal from my checking account of $ 460 a month for a total payment due over 36 months of $ 17,460 - pay off early at any time. You need serious excellent credit to get their best rate: their lowest current rate at this writing is 1.99%. And they plant a tree in your name somewhere. Interestingly, with this loan there is NO lien holder.
     
    #1 plow, Dec 29, 2016
    MikeDee likes this.
  2. Weasle543

    Weasle543 Member

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    #2 Weasle543, Dec 30, 2016
  3. bwilson4web

    bwilson4web BMW i3 and Model 3

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    After Saturday, all bets are off. Understand it was an eddy in time, soon to be past:
    • $28,403 - Bill of Sale
    • $11,647 - Financed, 60 month loan @0.9% via Toyota
      • $200/mo payment
    • $2,200 - bridge loan, line of credit, ~7%
    • Expected income:
      • $ - pensions, paychecks, and Social Security
      • $<TDB> - sale of 2010 Prius
      • ~$4,500 - Federal Tax Credit April 15
    Liquidate the the 'line of credit' bridge loan in two weeks as it has the highest interest rate. Then use the 2010 Prius sale to significantly pay down to Toyota auto loan (saving early interest.) With luck, the payoff interval will be cut in half and then payoff the loan in April/May from the tax credit. Then I can either max the deductible or drop it to just liability on all cars to reduce the insurance rate.

    What do you think, @Patrick Wong ?

    Bob Wilson
     
    #3 bwilson4web, Dec 31, 2016
  4. arctichaze

    arctichaze New Member

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    http://www.penfed.org has awesome rates.

    I've used them in my last 5 cars. I guess the rates increased slightly from a few weeks ago. 1.49% for 36 months, 1.99% for 48 months and 2.24% for 60 months.


    New Auto Loans - PenFed
     
    #4 arctichaze, Dec 31, 2016
  5. Civic4982

    Civic4982 Member

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    My local credit union gave me a blank check preapproval for 1.5% for up to $80k worth of car when I got my prime Advanced.

    May be a good idea to check your local credit union.


    iPhone ?
     
    #5 Civic4982, Dec 31, 2016
  6. JimN

    JimN Let the games begin!

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    I doubt anyone will be able to match the captive finance rate.

    Bob, I agree with your plan.

    Ally is paying 1% on deposit accounts and is offering a 1.25% 11 month no penalty CD. Will the $200/month be banked after the loan is paid?
     
    #6 JimN, Dec 31, 2016
  7. PT Guy

    PT Guy Senior Member

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    Really? Or it fell through the cracks and the lien holder didn't get listed? I'd think the lender would be sure to get on the title so if you sell, they get paid. And, the lender also probably wants to be the loss payee on your insurance.
     
    #7 PT Guy, Dec 31, 2016
  8. Neohippy

    Neohippy Active Member

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    I also used lightstream. Excellent experience. I got 2.25% for 60 months on a 2013 Plugin. I will use them next time again for sure.
     
    #8 Neohippy, Dec 31, 2016
  9. plow

    plow Junior Member

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    Interesting they ask how much you have saved for retirement. Just a guess on my part - above 750? I've no specific number. There is an interesting thread on this on Credit Karma forums you can easily find by googling lightstream. When I applied my credit rating was between 820 and 825.
     
    #9 plow, Jan 3, 2017
  10. plow

    plow Junior Member

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    There is no lien holder with the Lightstream loan, not an error. :)
     
    #10 plow, Jan 3, 2017
  11. CaliforniaPrius

    CaliforniaPrius Active Member

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    I heard if you have a car loan, your credit score will boost up overtime. The longer your loan, the higher boost. That's why I asked for a 72 months loan.
     
    #11 CaliforniaPrius, Jan 3, 2017
  12. plow

    plow Junior Member

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    Might be well so. I asked for a short term fixed vehicle loan that can be paid off at any time as I have $ 13,500 remaining on a Home Equity Line of Credit, 2 points below Prime which is fine but will go up again from now at 3.25% if the Feds raise rates again. That loan needs to be retired first and foremost.

    I will be applying the Fed Refund of $ 4,502 and the state refund of $ 750 to that variable rate loan - which funded the 10.75 kw 43 panel solar system we own on the house. In March the electric company here cuts me a check for surplus electric production and I'll apply that check to same as well. Having no electric bill, I drive the Prius Prime in part courtesy of the sun.
     
    #12 plow, Jan 3, 2017
  13. Neohippy

    Neohippy Active Member

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    What's boosts your score is having a low debt to income ratio and having low amounts of debt on your credit cards. I'm in the 800's. I took a 60 month loan because the rate was so low so why have a large payment
     
    #13 Neohippy, Jan 3, 2017
  14. Mendel Leisk

    Mendel Leisk EGR Fanatic

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    Interest rates aside, debt is still akin to driving around with sacks of rocks in the hatch, don't get it. The only time in my life I've gone into the hole is with the mortgage on our house, and man I was glad to get out of that.
     
    #14 Mendel Leisk, Jan 3, 2017
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