Personal Loan anyone?

4891 Views 21 Replies 11 Participants Last post by Avedis53, Feb 22, 2020

Mrkalu

Discussion Starter · Mar 29, 2013

So everyone is either financing or leasing. The other day I received an offer from discover to get up to 25K personal loan. I was thinking why not use that and put up the rest of the money in cash? it would only be like 15K. What do you guys think? I have until the summer to save, I already have been, plus with selling my car I'd have the funds. I mean it's still a way of financing but I have a good history with Discover and I'd be able to pay the loan over 84 months unlike the banks or the dealerships only offering 60 or 72.(Would never actually take that long, just going that route for cheaper payments) What's your thoughts on that ?

Also, new car prices are negotiable right?

1 - 20 of 22 Posts

boone

· #2 · Mar 29, 2013

Mrkalu said:
So everyone is either financing or leasing. The other day I received an offer from discover to get up to 25K personal loan. I was thinking why not use that and put up the rest of the money in cash? it would only be like 15K. What do you guys think? I have until the summer to save, I already have been, plus with selling my car I'd have the funds. I mean it's still a way of financing but I have a good history with Discover and I'd be able to pay the loan over 84 months unlike the banks or the dealerships only offering 60 or 72.(Would never actually take that long, just going that route for cheaper payments) What's your thoughts on that ?

Also, new car prices are negotiable right?

The only way I would do that is if the interest rate is almost zero. I honestly think you'd get a better deal by financing using a traditional auto loan because secured loans (auto, mortgage, etc.) have a lower rate than unsecured loans. If you put the same amount of money down and still financed for say 60 months. I think you would come out ahead. Especially with the final payoff number that includes all of your interest payments.

I am not knocking Discover at all. I have used them in the past to consolidate and pay off some higher interest debt in a very structured manner. I just do not think they are the way to go in this case.

Lukeb321

· #3 · Mar 29, 2013

Waiting to see the lease deals.
Down here in S. Fl, we tend to get some great prices.
The current G's are practically being given away and with the competition having some amazing deals, infiniti will have to follow.

For example, local Infiniti is offering:

NEW 2013 INFINITI G37 SEDAN JOURNEY WITH PREMIUM PACKAGE
24 month - 10,000 miles per year
23 monthly payments of $289 with only $1,999 due at lease signing.*

$1,999 total due at lease signing (inception fees) includes first month's payment; all fees, dealer fee, acquisition fee, capital reduction, upfront taxes, title, Florida license tag and registration are already included with these inception fees; there are absolutely no other fees or charges; monthly lease payment excludes applicable tax.*

OR

Local Cadillac is offering the ATS turbo for similar pricing:
2013 CADILLAC ATS 2WD Preferred Equipment Group w/Engine, 2.0L Turbo, I4, DI, DOHC, VVT Ultra Low-Mileage Lease for Qualified Lessees $299/month 36 month lease. $2,199 due at signing (after all offers). Includes security deposit. Tax, title, license, dealer fees and optional equipment extra. Mileage charge of $0.25 /mile over 30,000 miles.

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Mrkalu

Discussion Starter · #4 · Mar 29, 2013

Okay sounds good. Another reason why I was thinking that is because I could cash Discovers check and take a bag of cash to the dealership which I would in turn use as leverage toward the price I want. They'd know how serious I am and would do anything in their power to not let me walk out. I'm talking to 2 dealerships already. What part of South Florida you're in Luke. I'm in the Tampa Bay Area

Lukeb321

· #5 · Mar 29, 2013

Boca

boone

· #6 · Mar 29, 2013

Mrkalu said:
Okay sounds good. Another reason why I was thinking that is because I could cash Discovers check and take a bag of cash to the dealership which I would in turn use as leverage toward the price I want. They'd know how serious I am and would do anything in their power to not let me walk out. I'm talking to 2 dealerships already. What part of South Florida you're in Luke. I'm in the Tampa Bay Area

Cash will always be king but I think if you run all the numbers, you will be better off working with traditional auto financing. All of this is dependent on your credit score of course.

Reactions: 1

Mrkalu

Discussion Starter · #7 · Mar 29, 2013

boone said:
Cash will always be king but I think if you run all the numbers, you will be better off working with traditional auto financing. All of this is dependent on your credit score of course.

Credit score is around 750

kyler13

· #8 · Mar 29, 2013

Stay away from the personal loan. I browsed Discover's rates and at best, you're monthly payment for an 84 month personal loan is almost the same or worse than you'd pay for a 60 month auto loan with the competitive rates out there. If you're looking for specifics, PM me and I can point you in the right direction.

Mrkalu

Discussion Starter · #9 · Mar 30, 2013

kyler13 said:
Stay away from the personal loan. I browsed Discover's rates and at best, you're monthly payment for an 84 month personal loan is almost the same or worse than you'd pay for a 60 month auto loan with the competitive rates out there. If you're looking for specifics, PM me and I can point you in the right direction.

Will do

brianch

· #10 · Apr 1, 2013

You have to compare how much interest you will be paying over the term vs a regular auto loan.

It is generally a bad idea to go personal loan but if the interest rate is low enough and you will be paying less interest why not.

Just make sure you check first.

OngQQ.

· #11 · Apr 2, 2013

That is the problem with prolonging the payments period. I would hate to be stuck with a 84 months loan that would almost take forever to pay. I'd say the best is to just shop around and find the cheapest interest rate and your set. Otherwise forget it.

chrisbarett

· #12 · Feb 21, 2020

kyler13 said:
Stay away from the personal loan. I browsed Discover's rates and at best, you're monthly payment for an 84 month personal loan is almost the same or worse than you'd pay for a 60 month auto loan with the competitive rates out there. If you're looking for specifics, PM me and I can point you in the right direction.

thank for the advice

karakurt

· #13 · Feb 21, 2020 (Edited)

Wow, dude, that's a great idea. I have never seen anything like this, you're a genius. Is it still actual? I need it too, how can I pay for it? By the way, I really like your idea, I am going to use it one day. I really need that focus calibration system, because I have recently bought a new expensive camera. It was a little bit too expensive for me, so I decided to take a loan from https://foxycredit.com/fi/halino-laina, because these guys have some really good offers. I hope that I can still take this focus calibration system.

Reactions: 1

blazn420

· #14 · Feb 21, 2020

If you can't pay cash for something it means you really can't afford it. IMO the only thing you should have a loan for is a home mortgage. And even then you should try to pay that off ASAP.

Reactions: 1

rpiotro

· #15 · Feb 21, 2020

blazn420 said:
If you can't pay cash for something it means you really can't afford it. IMO the only thing you should have a loan for is a home mortgage. And even then you should try to pay that off ASAP.

I agree with the sentiment but if everyone felt the same not many cars would be sold. Just live within your means.
My personal belief is if you finance for more than four years you can't afford it. It is alo highly desirable to have substantial down payment with the goal to never be upside down.

blazn420

· #16 · Feb 21, 2020

rpiotro said:
I agree with the sentiment but if everyone felt the same not many cars would be sold. Just live within your means.
My personal belief is if you finance for more than four years you can't afford it. It is alo highly desirable to have substantial down payment with the goal to never be upside down.

Prices generally go down when unlimited money dries up. College, cars, medicine etc.

Reactions: 1

Avedis53

· #17 · Feb 22, 2020

rpiotro said:
I agree with the sentiment but if everyone felt the same not many cars would be sold. Just live within your means.
My personal belief is if you finance for more than four years you can't afford it. It is alo highly desirable to have substantial down payment with the goal to never be upside down.

Depends on the interest rate of your loan. I have a 5-year loan through Infiniti Financial Services. The reason I took it was it was a 0% interest loan. I could have paid cash for the car but that requires removing money from IRAs and paying state and federal taxes on the withdrawal. Same thing for a mortgage. Why pay off a mortgage at 3.5% interest when your money is making more than that and you have tax liabilities if you pull IRA money to do so?

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blazn420

· #18 · Feb 22, 2020

Debt = risk, just my opinion. I like not having payments, I feel more freedom that way, and can invest way more. I’ve done tons of leases, finances, personal loans, mortgages. I’ll never borrow money again for anything. I don’t even have credit cards anymore.

Sent from my iPhone using Tapatalk

rpiotro

· #19 · Feb 22, 2020

Avedis53 said:
Depends on the interest rate of your loan. I have a 5-year loan through Infiniti Financial Services. The reason I took it was it was a 0% interest loan. I could have paid cash for the car but that requires removing money from IRAs and paying state and federal taxes on the withdrawal. Same thing for a mortgage. Why pay off a mortgage at 3.5% interest when your money is making more than that and you have tax liabilities if you pull IRA money to do so?

I'm sure you understand that you are paying somewhere somehow for that 0% interest. It is called a buy down. Anyone can get a 0% loan anytime. Just pay up front. I have never seen a steeple and cross on a lending institution. They are in the habit of making a profit.

Reactions: 1

rpiotro

· #20 · Feb 22, 2020

blazn420 said:
Debt = risk, just my opinion. I like not having payments, I feel more freedom that way, and can invest way more. I’ve done tons of leases, finances, personal loans, mortgages. I’ll never borrow money again for anything. I don’t even have credit cards anymore.

Sent from my iPhone using Tapatalk

I went in the other direction. I used to always pay cash. If the credit card companies want to give me a kickback for using my credit card I'll take it. I always pay off the balance so I never pay interest. Some retailers used give a 2% discount for cash but the blow back was intense. People screamed "Why do I need to pay more for using my credit card?". Never underestimate the ignorance of the general public.

My dentist is the last holdout. A whopping 5% discount for cash or check.

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