Current financing rates....?

[Cseybert]

A lot of people don’t know this but any scores over 760 to 850 get the same deals.

 

[Bombaman]

If you have the ability to, also consider a 401k loan. Better to give yourself a 4-5% Return than the -9%+ rate your fund is running at the moment!

 

[pr3dict]

If you have the ability to, also consider a 401k loan. Better to give yourself a 4-5% Return than the -9%+ rate your fund is running at the moment!

That's a terrible idea... So pull out the money and lock in the losses of your 401k?? Your statement would make sense if it was 0% return but the fact that the market is down is exactly why you shouldn't touch your investments (unless you thought they would not rebound)

 

[Bombaman]

That's a terrible idea... So pull out the money and lock in the losses of your 401k?? Your statement would make sense if it was 0% return but the fact that the market is down is exactly why you shouldn't touch your investments (unless you thought they would not rebound)

Depends on your fund and how its structured, also how you think the market will take to rebound.
As with anything with a 401k, you should talk to your financial advisor

 

[pr3dict]

Depends on your fund and how its structured, also how you think the market will take to rebound.
As with anything with a 401k, you should talk to your financial advisor

I wish my financial advisor would tell me when sub $90,000 HD trucks will return lol

 

[mcarey]

I get that part. I'm just curious how much people are financing for 36 months? I don't normally do the full 72 or anything but 36 on an 80k plus truck seems insane to me.

Too much, IMO. I'd much rather keep my cash on hand, and pay the (marginal IMO) interest over the course of my loans.

Easier to say when I got my last loan a bit over a year ago, when rates were lower, but I've never understood the desire to not take advantage of cheap money.

 

[Bombaman]

Easier to say when I got my last loan a bit over a year ago, when rates were lower, but I've never understood the desire to not take advantage of cheap money.

What about those that got 72/84 month 0% in early 2020 (on "normal" discounted trucks on the lot) when FCA was freaking out (Free) money!

 

[mcarey]

What about those that got 72/84 month 0% in early 2020 (on "normal" discounted trucks on the lot) when FCA was freaking out (Free) money!

Sure, that's a different story. I'm all about that.

But for most, ~80+K over three years is a ton of cash that I'd think could be better utilized. But that's just my thoughts of course.

 

[Blythkd1]

Those long term, 0% loans were awesome. I used to buy a new vehicle just to get a bunch of cash back at 0% interest to pay off other debts and combine payments. I couldn't believe how much they would finance at 0 interest. I'm ready for those to come back.

 

[Eastcoasttattoo]

What about those that got 72/84 month 0% in early 2020 (on "normal" discounted trucks on the lot) when FCA was freaking out (Free) money!

Damn that would be sick to be able to get that again.

 

[Riddick]

Sure, that's a different story. I'm all about that.

But for most, ~80+K over three years is a ton of cash that I'd think could be better utilized. But that's just my thoughts of course.

True, but the sooner you pay it off the more money you pocket in the long run. Cash is king but it definitely puts a dent in your bank account, I can't stand paying interest..... Feels like I'm wasting money regardless of what the rate is.

 

[mcarey]

True, but the sooner you pay it off the more money you pocket in the long run. Cash is king but it definitely puts a dent in your bank account, I can't stand paying interest..... Feels like I'm wasting money regardless of what the rate is.

Sort of, but really only if your money is just sitting around doing nothing.

Using my loan as an example, I'll cover the entirety of the interest solely with guaranteed returns on I-bonds this year. Having that money available to use (in place of just throwing it at the loan), is making me 8.37% (9.62% current 6 month period, was 7.12% for the last 6 month period), versus avoiding my 2.3% interest rate.

We're also entertaining the idea of buying another house. Paying off my truck could be done, but I can't put my truck down as a down-payment. In that case, my 2.3% rate is completely worth the cost, to have the cash around to potentially buy the house. I view it as basically paying a fee for the opportunity of utilizing my on-hand money elsewhere.

 

[Riddick]

Sort of, but really only if your money is just sitting around doing nothing.

Using my loan as an example, I'll cover the entirety of the interest solely with guaranteed returns on I-bonds this year. Having that money available to use (in place of just throwing it at the loan), is making me 8.37% (9.62% current 6 month period, was 7.12% for the last 6 month period), versus avoiding my 2.3% interest rate.

We're also entertaining the idea of buying another house. Paying off my truck could be done, but I can't put my truck down as a down-payment. In that case, my 2.3% rate is completely worth the cost, to have the cash around to potentially buy the house. I view it as basically paying a fee for the opportunity of utilizing my on-hand money elsewhere.

Hmmmmm, I'm going to send you an IM and ask you about these I bonds. My portfolio is down roughly 200k and if I can get a guaranteed rate anywhere near 9.62% I am in! I recently sold a car and have a good chunk of change sitting in my account, not putting it in current marke...................................t so its literally just sitting.

 

[mcarey]

Hmmmmm, I'm going to send you an IM and ask you about these I bonds. My portfolio is down roughly 200k and if I can get a guaranteed rate anywhere near 9.62% I am in! I recently sold a car and have a good chunk of change sitting in my account, not putting it in current marke...................................t so its literally just sitting.

Feel free to send me a direct message, but this should help you (and anyone else curious) quite a bit: https://thefinancebuff.com/how-to-buy-i-bonds.html

They are super hot right now. And kind of unknown by a lot.

 

[Eastcoasttattoo]

Feel free to send me a direct message, but this should help you (and anyone else curious) quite a bit: https://thefinancebuff.com/how-to-buy-i-bonds.html

They are super hot right now. And kind of unknown by a lot.

I've been looking at these as well. Planned to dump a few grand into them when I sell my current truck after my new one comes in. I'm gonna make a pretty penny on getting rid of my tundra

 

[mountainears]

I get that part. I'm just curious how much people are financing for 36 months? I don't normally do the full 72 or anything but 36 on an 80k plus truck seems insane to me.

I did as much as they would allow me. Seemed like they wanted a certain percentage of equity. I ended up putting almost $70k at 0% and that cash will stay invested. I’ll just draw from that investment each month to pay the monthly payment.


Sent from my iPhone using Tapatalk

 

[Blythkd1]

Hmmmmm, I'm going to send you an IM and ask you about these I bonds. My portfolio is down roughly 200k and if I can get a guaranteed rate anywhere near 9.62% I am in! I recently sold a car and have a good chunk of change sitting in my account, not putting it in current marke...................................t so its literally just sitting.

Before everyone gets all excited, there's a $5k limit per person on I bonds. Great return, but just a low limit. It's easy to look up all the details, just do a google search.

 

[Riddick]

Before everyone gets all excited, there's a $5k limit per person on I bonds. Great return, but just a low limit. It's easy to look up all the details, just do a google search.

Its 10K per person annually and you can also use up to 5K from your tax return. At least I hope its 10K, I opened an account yesterday and placed an order!

 

[Azlonka]

I did as much as they would allow me. Seemed like they wanted a certain percentage of equity. I ended up putting almost $70k at 0% and that cash will stay invested. I’ll just draw from that investment each month to pay the monthly payment.


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I went through Koon’s which didn’t require any money to be put down for the special order and ended up financing the full purchase price plus TTL at 0% for three years. The finance guy did mention he had to call in order to get “approval” to do the full amount. Not sure if that was truthful, but in the end I was prepared to put some money down if required. Happy I didn’t have to though. Picked it up last Friday. I figured it is like free money and allows me to keep my cash in the bank. Not typically something I would do and figured it would give me time to look at other long term finance options at a later date if I decide I want to reduce the payment. For now I am just enjoying the truck and will prepare for the monthly payment shock each month.

 

[kevin588127]

I went through Koon’s which didn’t require any money to be put down for the special order and ended up financing the full purchase price plus TTL at 0% for three years. The finance guy did mention he had to call in order to get “approval” to do the full amount. Not sure if that was truthful, but in the end I was prepared to put some money down if required. Happy I didn’t have to though. Picked it up last Friday. I figured it is like free money and allows me to keep my cash in the bank. Not typically something I would do and figured it would give me time to look at other long term finance options at a later date if I decide I want to reduce the payment. For now I am just enjoying the truck and will prepare for the monthly payment shock each month.

I'm fighting with this with myself right now. I hate car payments and was prepared to pay cash. If the zero percent is available and I can finance the whole amount, Im going to take it. I'll pay my house off instead and use that freed up money to make the truck payment. Just goes against my philosophy of never having a car payment.