NSX car loan

[smoothf1]

I've just recently closed on a deal to buy a '91 NSX. I'm shopping around for a good car loan and it's getting frustrating. My bank (bank of america) will only finance down to '93 and my credit union's deal is no good (75% of value max loan term of 36 mon....) So far my best bet is JJ best with 20% down and 11% interest! Has anyone found a better place to get a better loan. Some specifics:

excellent credit
$60K+ annual income
private party sale, OUT of STATE (MD and DE)

Any help would be greatly appriciated...I would love to join in in the NSXperience!!!

Nick

 

[flaminio]

Are you a homeowner? A home equity loan is often a good way to go -- low, deductible interest.

Just don't default

-Bob ('94 #496)

 

[NormRD]

You can try Star of Texas Credit Union, located in Austin, TX. Look up their number on, but if you can't find it i will look for it at home.

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92 Red/Blk

 

[multisync23]

I don't mean to sound like an a-hole, but why not pay cash? And if you can't pay cash, you shouldn't buy the car at all.

Sounds like snotty advice, but it's a good policy. I've never borrowed a dime in my life. I rode a bicycle until I could afford to buy a car outright. Then I drove an '85 Bronco until I could afford a '94 Camaro outright. Etc., etc.

It takes discipline, but in the long run you'll come out ahead.




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Red/Red '91. Comptech Supercharger. RM headers. Comptech exhaust. Short ratio gears. Ring and Pinion swap. RM racing suspension. 18/17 wheels/tires.

 

[Edo]

I cant say that I havent taken a loan before..but my NSX is the first car I've paid for in cash and I am DAMN happy that I did so. Being free of car payments is absolutely great.
Looking back at previous cars.. I agree with multisync..
It IS sound advice..although a bit difficult for some of us to do.

 

[smoothf1]

I am a home owner (took out a loan for that too

) but i don't have enough equity. Aside from the mortgage, utilities, and various mag subscriptions, I have no other payments. I generally believe in paying for things in cash. But things like a house, car and education is an exception IMO. Credit is a powerful tool and I intend to use it (nsx is not a necessity, but it does represent a passion of mine...and I can *afford* one finally). Anyone with any older car loan experience out there?

-Nick
i guess you got a rise outta me

 

[hejo]

I don't mean to sound like an a-hole, but why not pay cash? And if you can't pay cash, you shouldn't buy the car at all.

Gee man cut "smoothf1" some slack... some of us pay cash for own NSXs from these loans.

If you need a loan my experience over the years is credit unions typically have the best rates. I currently belong to 2 different ones. I did a quick lookup to see what they had available.

Credit union #1 will loan up to 100% high Kelley Blue Book/NADA value plus tax, license, and GAP on cars older than 5 years. The current rate is 48 months at 9.5% and is a full point higher than a new car loan for the same period.

Credit union #2 from a previous employer will only loan up to 75% of Kelly Blue Book value for 36 months at 10.5% on a car 10 years or older. They also require an inspection.

So while Multsync23 might have been a little harsh in his statement, there's a lot of truth in what he said. The lenders want you to have some skin in the game for a car this age.

If you can't afford the 20% down on a 91 then I think maybe you should reconsider trying to own one (not to mention you're going to spend over 1/3 more on interest).

While the NSX is a excellent car, a 91 with miles could chew a clutch. That's over a $1k to fix. Tires, I chew them up every 7500 miles. That's another $900. Just things to think about.

[This message has been edited by hejo (edited 09 October 2000).]

 

[smoothf1]

Thank hejo,

I guess I'll go with the 20% down 11% interest. I need to get this guy his money soon. The 20% is not a problem, but I was just trying to find the best rate. If my freakin stocks ever bounce back, I'd sell some of them too. Just bad timing I guess. Can't pass up this (local !)NSX...too good of a deal.

_nick

 

[James Cruz]

Smoothf1, try Peoplefirst.com.

[This message has been edited by James Cruz (edited 09 October 2000).]

[This message has been edited by James Cruz (edited 10 October 2000).]

 

[Nsxotic]

Not only is James right in the description of you, Multisynch, but you also gave very poor financial advice. This is my business, smoothf1, so e-mail me and I'll help you the best I can. You should NEVER pay cash!!!! Don't throw whatever thousands into a piece of metal that won't give you any return. Keep it invested and earn money on it while making payments... of course, we all know that. Unless of course, the interest rate you pay is 1.78 times the amount of interest you are making on your money......and that rarely happens.

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Pls. visit my site w/ lots of info and pics. Brand new classifieds and Message board. It may take a bit to download but it's worth it, I hope @
http://www.modenaenterprises.com/dave/nsx/index.html

 

[multisync23]

That's news to me. I'm not aware of any SURE THING investment that outpaces the interest of even the most favorable car loan. Why then, would the bank that issues your car loan, accept less interest when a better return is available to them?

I'm curious, where can I put my money that I can make more (annually) than my bank makes lending to its customers? Mutual funds and stocks don't apply. The money must be as certain as car payments to the bank.



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Red/Red '91. Comptech Supercharger. RM headers. Comptech exhaust. Short ratio gears. Ring and Pinion swap. RM racing suspension. 18/17 wheels/tires.

 

[HapaHaole]

smoothf1,
If I was you I would take the easiest option if you want to get that car.. You can always refinance the vehicle so you can get a lower interest payment. I cant believe how banks are.. Hmm.. I called my CU and they told me they will finance any car as long the car is not more than 10Years old and the price has to be within nada guide book pricing. Good Luck.. I hope you get it.

Multisync23,
Lets take this in picture..
You pay lets say $30K for the car.. You put that in a BAD Mutual Fund and it earns 14% of that. Ok now since you finance the car at 8% you make 6% of you $30K = $1800 a year. Hmm. NOw also you have to concider your money is compounded. and you have that money in the bank and you are only paying for the vehicle and interest..

Paying cash for a Car / house is one of the worst things you can do. If you are going to buy a car over $20K never pay cash for it.. always make your money work for you. That is why leasing high ticket cars is the only way to go.. You only pay for interest and loss of vehicle value.

Multisync23, how did you pay for your HOUSE? CASH.. I gotta see that. $200K man that would take at least 10 years or so to save??

[This message has been edited by HapaHaole (edited 10 October 2000).]

 

[nsxtasy]

What if that mutual fund goes DOWN by 14 percent?

 

['98 NSX-T]

multisync23, how old are you? The only people I know that talk about investments in terms of “sure things” are depression era elderly folks, and given these people are 80+ I doubt many own an NSX, you cant be that old, so you must be ignorant. I suggest you continue to work with your FDIC insured bank, continue to invest in your “guaranteed” CD’s with a 5% rate of return and continue to lose money against inflation. Even in the horrible year we are experiencing in the market the 1 year (calendar) rate of return of the NASDAQ composite is ~18% and 2 year calendar ROR is ~120%. The best piece of advice I have read in this thread is to use a home equity line if you have a home, because the interest is tax deductible and the worst piece of advice is what you wrote, “you will come out ahead”, in fact you will come out far behind. If you knew anything at all about financial institutions you would know they actually do seek better alternatives and invest our deposits – do you think they pay for their entire infrastructure with checking account fees or measly interest from car loans? Get real. The more I write changes my impression of you from ignorant to <deleted derogatory comment>.

smoothf1, hold that stock you talked about selling, it will bounce back. Take the money you would use to pay cash for the NSX and invest in the market now while it is down, and leverage your money and get a loan for your NSX. Enjoy the ride.


[This message has been edited by '98 NSX-T (edited 10 October 2000).]

 

[multisync23]

HapaHaole,
14% is a BAD return? Lately, I'd gladly take 0%.

You must be a new investor. People who got into the market in the last 3 years have developed unrealistic expectations. Now that things have turned sour, those people are learning the truth...the hard way.

As a general rule, and I'm not the first to say this, never borrow money unless it's for a house (a house being an exception because you can build equity in it). As much as I love my NSX, it's only a car. I don't see the point of going into debt for something that's going to depreciate anyways. Only in America...

 

[HapaHaole]

well with this current market my Returns have been at 75% I have invested in a few stocks and have done some daily trading. The average for Mutual funds right now is 12% APR Return.. if you dont have this then your Broker or yourself is doing a bad job. I have been trading for 4 years now.. I have to admit I did loose 25% of my portfolio when the market when sour.. yet after that when it started to go back up I made the difference and made 100% back.. thus making my 75% profit. and this year is not even over yet.

Sure the bank is safe and cozy.. yet I rather risk some of my money and get back more.

I am not trying to pick on you.. Just showing you why I wouldnt pay cash for a vehicle when the interest rate v.s. equity is not worth it.
Also you can also loose you ass on a house.. example is the hawaii market.. My parents bought a Townhouse there for $280K in '92 now it is worth $120K so that is a huge loss.. so no investment is 100% sure..

If you feel that paying cash is the smart way then good for you for saving up that money. for me.. good o'l credit is the way to go.

 

[flaminio]

14% is actually the historical average return for the U.S. stock market, excepting the Great Depression. Even if you include the Depression, the overall return is 10.1%

My NSX car loan is 9.5%. I could pay it off today, but I'd rather leave that money invested.

Multisync, I don't think you're an a******, but I do think it's wrong to give advice in terms of absolutes. Different people have different risk factors, and different reactions to carrying a debt. Debt financing is a perfectly valid financial instrument.

-Bob ('94 #496)

 

[multisync23]

NSX-T, The market is all about timing. Can you quote the same ROI for the people (and there's A LOT of them) who just jumped in 6 months ago?

I've got money in the market too, but it's money I don't need for at least 5 years in the future. I can ride out the turbulance.

But to put money in the market that you need for car and mortgage payments at the present time...that's just FOOLISH.

Ever wonder why you find so many exotics on the market because of bank reposession? It's because their owners were counting on high risk income to pay for their cars, and that income never came. Easy come, easy go, NSX-T.



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Red/Red '91. Comptech Supercharger. RM headers. Comptech exhaust. Short ratio gears. Ring and Pinion swap. RM racing suspension. 18/17 wheels/tires.

 

[mattchu]

LOL...wow...I feel like the red headed step child here. All my money is in real estate. Not one penny in the stock market (could be good..could be bad) but I will tell you one thing, the rental properties I own (mobile home parks..no not the white trah ones, but senior retirement communities) 1) have never lost value 2) have appreciated enough over the years that I double my money every 5 years. 3) If the real estate market falls apart, the cashflow off the properties continues to come in no matter what...I kinda like the idea that if someone doesn't pay me, they get in trouble. The nice thing about real estate is leverage can make you a millonaire..the more you borrow, the more you make why?

I put 1 million down on a 8 million dollar properity. Just the appreciation over 5 years (in my area now 6%) gets me $2,400,000.00...not top mention the 10-12% cap rate (capitalization rate..what my return on my money is) on my initial invested $1,000,000.00..(cashflows about 120k per year)

That is the money I use to buy my toys...because if I get hurt and cant work...no problem...the money keeps on coming in..every month.

Oh and here is something you guys/gals might find interesting....I just won against the IRS..I havn't filed income taxes in 4 years...they tried to take me into court for willful failure to file...all I asked of the indightment was for the IRS to show me where in the tax code I am liable for or subject to income taxes...they dropped the case and said I am now not required to file...and I am just a regular joe.Funny thing is there is no requirement for anyone except those who sell tobbacco, alchol, or firearms to pay any sort of income tax...wow the IRS really dupped me for a while there..

 

[Lud]

This is an NSX message forum. Keep it on topic or post it elsewhere. Investment strategies do not belong here. If you really want to talk about it, there is an Off Topic message forum for just such things.

Flames and name calling are certainly not welcome welcome either. Anyone whose message is "in question" in that regard can either:

1. Go back and edit their message to remove any insults or name-calling AND post a reply message with any appology to whoever they insulted.

2. Find somewhere else to post because I'll disable your account here if you don't do #1 in the near future.

Sorry to sound like a jackass but this thread/flame is ridiculous.

If you want to discuss it further, e-mail me directly or post it in the NSX Prime discussion topic, not here.

[This message has been edited by Lud (edited 10 October 2000).]

 

['98 NSX-T]

Originally posted by multisync23:
1. NSX-T, The market is all about timing. Can you quote the same ROI for the people (and there's A LOT of them) who just jumped in 6 months ago?

2. I've got money in the market too, but it's money I don't need for at least 5 years in the future. I can ride out the turbulance.

3. But to put money in the market that you need for car and mortgage payments at the present time...that's just FOOLISH.

4. Ever wonder why you find so many exotics on the market because of bank reposession? It's because their owners were counting on high risk income to pay for their cars, and that income never came. Easy come, easy go, NSX-T.

Responses:

1. This is not an intelligent comment. The stock market (for me) is about long term investment, not jumping in and out trying to "time" the market. Timing the market is a recipe for failure, as many of the new day traders are finding.

2. That is the right attitude, long term investment.

3. Agreed. However, let me explain further. I assume that an NSX is a "want" not a "need" thus would not be primary transportation (most people dont buy an NSX as their only mode of transportation). This implies that the money for the NSX would be disposable income, which by definition would not be REQUIRED for car or mortgage.

4. No, I have never wondered, but thanks for your opinion. Glad I dont have to worry about that, but I guess those people you describe make it easier for us to acquire vehicles discounted.

multisynch23, we are getting quite far from the intent of smoothf1's initial post - seeking help to find a financial institution willing to finance a car >5 years old. I was outraged at the arrogance of your initial post, and fell into the trap of responding to you instead of smoothf1, so I want to take the high road and apologize to multisynch23 and the group for flaming multisynch23.



[This message has been edited by '98 NSX-T (edited 10 October 2000).]

 

[rquintero]

Gee Lud, I was about to tell the story about how I used to walk to work, uphill (both ways) and barefooted until I could buy my Y2K NSX...

SmoothF1: if I really wanted the car, in your shoes I'd probably take the 20% down/ 11% apr deal after reasonably assuring myself that I couldn't do better on the apr, then probably refinancing after more disposable cash came at hand (as in your stock appreciating, etc).

Life is too short. Just my opinion.

 

[smoothf1]

Thank you everyone for taking so much interest in my post. I feel that I have joined a special family. I have a loan now. It's at 11%, but I can refinance it/pay it off in the next few months. I should pick up the car in a few days! Nsxotic, I'll look you up later. Now to get some toys for NSX...

Nick
-'91 NSX
-'87 cargo jet with 172,000lbs of thrust