Anyone looking for 1.49% APR

[82Kuba]

Unless your investments make LESS than 1.49% annually, you're better off taking advantage of the loan vs. paying in full. 36 months @ 1.49% is practically free money, if you invest.

My mindset in July of last year was to pay in full due to the rates I could find at the time. Then I was directed to PenFed with their 1.49% and that was a no-brainer. I would loose money by paying in full.

you know your shit brother... I got a 1.9% APR for 84 months from my Credit Union!!!!! When I heard that I jumped up as said hell yea. I've been with them for 15years and had about 8 vehicle loans with them. I'm driving this truck till the warranty expires and its off to the next one.

 

[rms8]

Not once did I say a savings account is a primary investment


Sent from my iPhone using Tapatalk

Then what exactly was the point of you saying :

.I'm not (and no one is) making 1.49% in a savings account.....

That's what it implies. If that is NOT what it means, then it was a pointless comment.

---------- Post added at 04:45 PM ---------- Previous post was at 04:33 PM ----------

you know your shit brother... I got a 1.9% APR for 84 months from my Credit Union!!!!! When I heard that I jumped up as said hell yea. I've been with them for 15years and had about 8 vehicle loans with them. I'm driving this truck till the warranty expires and its off to the next one.

Wish I had that sort of luck with my CU....

I've been with Grow Financial (formerly MacDill FCU) since 1988. MacDill AFB was my 1st assignment and I opened up a sav/chk account. Their BEST rate was 2.79%. Oh well. I'm glad Penfed is so generous!

 

[naamanf]

I just purchased mine with 1.49% through USAA. They will do that rate up to 72 months, just make sure you use their car buying service. I really didn't us it but the dealer I bought from was part of the program so I got the rate discount.

 

[RaptorEnthusiast]

Unless your investments make LESS than 1.49% annually, you're better off taking advantage of the loan vs. paying in full. 36 months @ 1.49% is practically free money, if you invest.

My mindset in July of last year was to pay in full due to the rates I could find at the time. Then I was directed to PenFed with their 1.49% and that was a no-brainer. I would loose money by paying in full.

It's never a good idea to finance. If you have the money to buy it cash then do it. If you have to think about whether using all your cash is a good idea compared to financing then your particular situation dictates that you can't afford it.

Obviously it's your prerogative how you spend your money. I just have a completely different view on money now. I view debt as a bad thing simply put. I used to finance big purchases because I thought I could afford it based on my monthly payments. That's just delusional. I would never advise anyone to become a slave to debt. I'd rather be debt free and self insured in the future by being a responsible steward now.

 

[rms8]

It's never a good idea to finance. If you have the money to buy it cash then do it. If you have to think about whether using all your cash is a good idea compared to financing then your particular situation dictates that you can't afford it.

Obviously it's your prerogative how you spend your money. I just have a completely different view on money now. I view debt as a bad thing simply put. I used to finance big purchases because I thought I could afford it based on my monthly payments. That's just delusional. I would never advise anyone to become a slave to debt. I'd rather be debt free and self insured in the future by being a responsible steward now.

LOL.....

You should run that story by ANY financial adviser and let them know you passed up a 1.49 because you didn't want any debt. If you don't have a large portfolio, then your story might make sense.

Let me break it down in a more simple fashion....if you can use the BANKs money for 36 months (and it only cost you 1.49%) vs. your own money when you KNOW your own will make 5-7% in that same time frame.....again, no brainer. The simple fact that you don't understand this math is shocking. I am using the Banks money....not my own.

 

[Jiman]

Financing because it's the only way to afford a big purchase is one thing, and we can go round & round on the prudence of carrying that kind of debt.

What we're talking abt here is if you have the money to pay cash OTD or invest the same amount and finance the purchase at a low rate.

If you invest the money and the return is 5% and the truck finance rate is 1.5%, you're still earning 3.5% (5-1.5=3.5).

Said another way, If you spend your 70k on a truck all you have to show for it is a truck. If you take the same 70k and invest it wisely, you get a truck and you're still making money on the $70k.

In real terms, my Raptor loan amt is $45k 36months/.99%. Assuming I don't pay it off early, and use the entire 36month period, my total cost for borrowing the money is $702.90.

So basically anything over $703 that I make over the same period with my invested $45k is totally worth it.

 

[Mluis11]

It's never a good idea to finance. If you have the money to buy it cash then do it. If you have to think about whether using all your cash is a good idea compared to financing then your particular situation dictates that you can't afford it.



Obviously it's your prerogative how you spend your money. I just have a completely different view on money now. I view debt as a bad thing simply put. I used to finance big purchases because I thought I could afford it based on my monthly payments. That's just delusional. I would never advise anyone to become a slave to debt. I'd rather be debt free and self insured in the future by being a responsible steward now.

Wrong. Read the 2 posts below you to understand. Debt isn't a bad thing if you're responsible and manage your money/debt appropriately. With your method you'll never file for bankruptcy, but you'll also not be as wealthy as you could be if you were smarter with your money.

A little real life analogy I just encountered on building verses buying a chicken coup.
Build:~$500 in materials and 2 days work.
Cost:~$500 and 2 days of my time=DIY quality(I'm no carpenter!)

Buy: $1000 and work 2 OT days
Cost: I put $1000 in my pocket after payment and own a perfectly built chicken coup. Same time spent.

Be smart with your money and time!

 

[rms8]

Financing because it's the only way to afford a big purchase is one thing, and we can go round & round on the prudence of carrying that kind of debt.

What we're talking abt here is if you have the money to pay cash OTD or invest the same amount and finance the purchase at a low rate.

If you invest the money and the return is 5% and the truck finance rate is 1.5%, you're still earning 3.5% (5-1.5=3.5).

Said another way, If you spend your 70k on a truck all you have to show for it is a truck. If you take the same 70k and invest it wisely, you get a truck and you're still making money on the $70k.

In real terms, my Raptor loan amt is $45k 36months/.99%. Assuming I don't pay it off early, and use the entire 36month period, my total cost for borrowing the money is $702.90.

So basically anything over $703 that I make over the same period with my invested $45k is totally worth it.

A brilliant explanation. TY.

Mind if I/we ask where you were able to snag 0.99% ? I purchased my 06 Lariat Screw(which I will be selling once my butt is in my Raptor) in 07 for 0% @ 60mon. But we all know (at least all SHOULD know) that dealers ALWAYS offer some sort of fantastic financing on lingering last years non-specialty models to just get rid of them.

 

[photoneffect]

Let me break it down in a more simple fashion....if you can use the BANKs money for 36 months (and it only cost you 1.49%) vs. your own money when you KNOW your own will make 5-7% in that same time frame.....again, no brainer. The simple fact that you don't understand this math is shocking. I am using the Banks money....not my own.

There's always risk with any investment. The earlier comment about the savings account not offering a 1.49%+ rate was likely alluding to this point. There's not a lot of risk-free investments that net 5% these days.

Personally, I paid cash for mine. Bought it through my business in which there was a debt/equity concern going on for me. But generally speaking I'd agree 1.49% is pretty cheap as far as money goes.

 

[Jiman]

Yeah, NP.
It's through a CU acct that I opened long time ago, Congressional Federal Credit Union. Don't work there anymore, and I don't know the stipulation for opening an acct.

.99 came from if I used their buying service. If you do they knock off .5%. It's normally 1.499 for 36mon.

Funny thing is, like a lot of us here, we're waiting on allotment orders. My order is in, and at the time I contacted my CU abt rates, my truck was on its way to the dealer. I didn't need no Stinkin' buying service��

The CU told me it didn't matter. The dealer I was working with just had to be part of the program, which it was....bam .5% off.

BTW: Trades are a great way to reduce the amount of sales taxes you pay on your new ride.