My commute is really short (under 7 miles round trip), so I can pull something like this off, though I wouldn’t get a GT4. I’m also perfectly okay with driving a fully depreciated “cheap” car 50% of the time and having something amazing the other 50%, so a loan like this actually makes some sense to me.
4play
4play
Over a longer term, the 144 month loan actually starts to be the better deal around 40-42 months out, assuming you invest spare cash at 7-9% returns.
I was the OP you replied to...
Whoa, so upset!
I was the OP you replied to...
Generally, these loan types (Woodside Credit/JJ Best/etc) are used to finance very expensive exotics with minimal depreciation. The GT4 example above is probably about the lowest purchase price where such a loan scheme makes sense, since (as you pointed out), a standard 72 month loan with no downpayment and a 3% rate…
Most of the people I know who have done these loans could have purchased the cars with cash. But, a $200k+ cash purchase makes no sense when (as stated elsewhere) you can beat a 6.25% rate with your investments.
Think of it this way and you’ll see why this is such a popular loan product:
Think of it this way and you’ll see why this is such a popular loan product:
Yep, that’s exactly the purpose of this loan, and something that apparently blows the mind of Jalopnik writers, because these get talked about at least once a year as being a “terrible idea”.
The monthly rate is 0.52% and annual rate is 6.25%. Check your rounding using “RATE”, it’s probably set to zero decimal places.
This isn’t a sub-prime lender. The people selecting a 12 year term at 6.25% on a GT4 and the people buying a 1997 Eclipse with a 72 month term at 12% are two totally different markets.
Someone with this loan type is going to own the car for 1-3 years and hope that it either does not depreciate or appreciates slightly. Interest rate is 6.25%, which is a bit high but allows the buyer to keep ~$80k liquid instead of tying it up in a GT4. Not hard to beat that return, even in the current volatile…
I think Kinja erased my post, but it’s easily possible. My wife and I kept our finances separate before the marriage (and still do).
My wife and I keep our finances totally separated, but we still have disagreements about spending.
He won the 24 hour of Le Mans with Peugeot (and has 4 podiums) and scored points in a dreadfully slow Minardi. I’d say he was pretty good.
Every commercial jet aircraft has a pressurized and climate controlled cargo hold.
It never made sense that the car didn’t make at least 200hp.
+1.