Boston2theBay
New member
traceimage said:
New Car
- Thread starter traceimage
- Start date
NEW -> Contingent Buyer Assistance Program
But since PS9 mentioned TIC... the window is probably greater on new builds (3-6 months from what I remember)... unless he's looking at an escrow fallout although couldn't you work with underwriting to base ratios per the payoff of the car loan.
I remember one of the times we bought or re-fied, we just had to show proof of paying off an old credit card balance or something.
irvinehomeowner
Well-known member
A Hyundai? 
Actually, reading this thread feels like I was haggling at a dealership.
Actually, reading this thread feels like I was haggling at a dealership.
WoodburyDad
New member
A Chevy Volt? 
usctrojancpa
Well-known member
Avalon....$28,888.88ps99472 said:
Optimus(sub)Prime
New member
Toyota Avalon
$30,000+ttl, about $33K OTD?
I assume this would be net of the $3K cash back they are offering. Do you pay tax on the rebate? My original guess was $32K OTD, then I realized they are offering 0% (36mo) or cash back.
$30,000+ttl, about $33K OTD?
I assume this would be net of the $3K cash back they are offering. Do you pay tax on the rebate? My original guess was $32K OTD, then I realized they are offering 0% (36mo) or cash back.
irvinehomeowner
Well-known member
So here's my question... PS9 paid cash for his ride... do people here buy/finance or lease their cars?
I can understand buying if it's some 0% finance deal... but feel that for depreciating assets like vehicles and something where I like to drive more for my money or have newer cars every 2-5 years... leasing seems to work.
Like our minivan... we bought... because we are going to keep it for probably 10+ years... but our other vehicle we lease.
Discuss?
I can understand buying if it's some 0% finance deal... but feel that for depreciating assets like vehicles and something where I like to drive more for my money or have newer cars every 2-5 years... leasing seems to work.
Like our minivan... we bought... because we are going to keep it for probably 10+ years... but our other vehicle we lease.
Discuss?
qwerty
Well-known member
our two cars have been purchased. i have a long commute so leasing would never make sense for me. my wife on the the other hand is a good lease candidate since she works in irvine. she may lease her next car. if we are buying, unless we get a 0% interest rate, then we would just pay cash. paying 3-4% interest on a car loan while having it earn less than 1% in the bank is negative arbitrage.
usctrojancpa
Well-known member
Depends on your tax situation and what you can do with the cash. For me, a 2.49% 5-year used auto loan was a no-brainer (especially since I can write off a portion of the interest). I can easily obtain a 2.50% annual return on the money I would have paid for the car.irvinehomeowner said:
irvinehomeowner
Well-known member
Not sure how those ratios actually work... but doesn't the $30k extra in cash counter that a bit? You could always just pay the whole loan off in case it does become an issue... 0% loan gives you more flexibility.ps99472 said:
irvinehomeowner
Well-known member
Understood.qwerty said:
But since PS9 mentioned TIC... the window is probably greater on new builds (3-6 months from what I remember)... unless he's looking at an escrow fallout although couldn't you work with underwriting to base ratios per the payoff of the car loan.
I remember one of the times we bought or re-fied, we just had to show proof of paying off an old credit card balance or something.
ps99472
New member
I don't have the mentality to ride thru stock volatility so all cash with no headache is easier for me. My last refi, there was a little hiccup because I got a new kohls card, easily explained but if I was buying a house then I would have much more to lose since I can't control the stupidity/efficiency of lender/escrow. Just want to show up clean and ready for the party...
My Avalon had either 0% APR 36 months or $3000 cash back, it was a no brainer on my part. $30000 at 1% savings interest = $900 over 3 years.
My Avalon had either 0% APR 36 months or $3000 cash back, it was a no brainer on my part. $30000 at 1% savings interest = $900 over 3 years.
Optimus(sub)Prime
New member
I recently bought a car and paid cash. Similar to ps99472's reasoning, I wanted to keep my ratios clear when it comes time to buy a house.
There are 3 ways to ensure you get the best deal possible - pay cash, 0% finance, or arrange your own financing. If you don't do one of the above, you run the risk of having your rate marked-up.
In the Avalon example, it would require a 5.4% return on the $33K if you were to finance vs pay cash (assuming the net cash back is ~$2,750 due to the tax on the money) to break even.
The Avalon is definitely an anomaly, in most cases Toyota will do 0%-36mo vs $1,000 cash back. In that case, it's pretty much a break-even scenario.
There are 3 ways to ensure you get the best deal possible - pay cash, 0% finance, or arrange your own financing. If you don't do one of the above, you run the risk of having your rate marked-up.
In the Avalon example, it would require a 5.4% return on the $33K if you were to finance vs pay cash (assuming the net cash back is ~$2,750 due to the tax on the money) to break even.
The Avalon is definitely an anomaly, in most cases Toyota will do 0%-36mo vs $1,000 cash back. In that case, it's pretty much a break-even scenario.
homer_simpson
Well-known member
AMV12
