Best financing route to take

[Q6543]

? That’s wild.. fed funds is 5.25-5.5… they would be losing money on your loan at 4…

that math ain’t mathing…

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[Back2Gas]

I just talked to my credit union manager, their current rates are 4% for 48 months and unpredictable for the future.

On the positive side of it I made a large deposit into a 3 month CD earning 3.9% which is the positive side of the same financial position we are all in.

How? At the current fed run rate of 5.25%, that credit union would be giving money away by signing 4% loans.

 

[Rick Deppe]

Ford Credit. Is always the best for me. Easy app nice and easy

 

[Interstellar]

I just talked to my credit union manager, their current rates are 4% for 48 months and unpredictable for the future.

On the positive side of it I made a large deposit into a 3 month CD earning 3.9% which is the positive side of the same financial position we are all in.

Can you please share the name of your credit union? That rate is fantastic right now

 

[mcky2011]

KY local.
Park Community.
I checked Ford, they are 5.9.

 

[Smaaron]

Having $60-70k just sitting in cash is definitely not the way.

Using cash is the best way I’ve found to never have financial worries. I’ve never had a super high paying job, but by using cash responsibly I now own several houses and all my cars with no debt. I understand the math says you can use debt leverage to make more money than using cash, but I’ve still never met anyone with the self-control to actually follow through with the investments they say they’ll make with the money they keep by financing. I’m sure a few of those super disciplined people are out there making risky investments and winning, but it’s not common. I do have a lot of friends and family that became wealthy by paying cash, budgeting, and avoiding debt.

 

[Smaaron]

Having that much cash doing nothing is throwing money away. If not invested, depending for how long, you would have missed out on much more than whatever the couple thousand the financing would've costed in the end.

So yeah, holding cash as it gets eaten away by inflation is worse.

What are you investing your $60k in?
I commend you for finding a solid investment >8% and actually investing that money long term if you’re able.

 

[Smaaron]

Some of us are high earning young people who want to enjoy life. I am sure for 55+ years old paying cash for a sports car is a lot easier. I mean this in a respectable way not trying to come off as mean.

True statement. If you have the money you can do whatever you want. I just like to see that people have a backup plan because it’s easy to forget about the risk that comes with debt.

 

[Mspider]

True statement. If you have the money you can do whatever you want. I just like to see that people have a backup plan because it’s easy to forget about the risk that comes with debt.

Its really not that risky if done correctly. I put 20% down on my 2022 GT and sold it a year later. The dealership write ME a check to buy the car. As long as you are not underwater on your loan there is very little risk involved. Its the people who put very little down with high interest rates who find themselves in bad situations.

Put enough money down, get a decent interest rate, have a emergency fund that can cover you for 6 months to 1 year expenses (includes your car payment). That is how you can responsibly have debt.

 

[Smaaron]

Its really not that risky if done correctly. I put 20% down on my 2022 GT and sold it a year later. The dealership write ME a check to buy the car. As long as you are not underwater on your loan there is very little risk involved. Its the people who put very little down with high interest rates who find themselves in bad situations.

Put enough money down, get a decent interest rate, have a emergency fund that can cover you for 6 months to 1 year expenses (includes your car payment). That is how you can responsibly have debt.

Yeah, yours is not a risky situation. It seems like decent interest rates will be hard to find for a while though. Unfortunately, a lot of Americans don’t even have emergency funds these days.

 

[Mspider]

Yeah, yours is not a risky situation. It seems like decent interest rates will be hard to find for a while though. Unfortunately, a lot of Americans don’t even have emergency funds these days.

Yea Its crazy how most people live life.

Interest rates are a big problem right now. You have to counter it by putting more money down. But for me I am in no rush to get another mustang. Hopefully rates go down within the next couple of years. My 22 GT was 2.9% at 60 months, hopefully they go back to those levels.

 

[unfairslide]

What are you investing your $60k in?
I commend you for finding a solid investment >8% and actually investing that money long term if you’re able.

My main point wasn't cash vs finance. It was what people are doing currently with that cash. $60k lying around is a waste vs investing in almost anything else. Well maybe not options lol.

I do agree with your earlier point though. Not having debt can be a huge benefit to your finances and especially your mental health even if other opportunities can be more lucrative.

 

[donnytsunami]

Get preapproved from a credit union. Have your dealership try to beat your CU’s rate. (Do this all within a week of purchase so your credit doesnt take too big of a hit) Then refinance when rates go down.

 

[Back2Gas]

Get preapproved from a credit union. Have your dealership try to beat your CU’s rate. (Do this all within a week of purchase so your credit doesnt take too big of a hit) Then refinance when rates go down.

Some credit unions will give you pre approval without a hard inquiry. Penfed is one of them.

 

[mcky2011]

Even with a solid deal all of us buying almost any new car are making a bad investment.
I am buying one for the all American, brainwashed consumer reason of: i want one.

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