CC 350Z

iTrader: (1)

I don't carry 36 grand in cash with me so I wrote a check.

Netko350Z

iTrader: (8)

Yea my houe paid for mine. Gotta love home lines of credit!

I am still amazed that the wife let me do it soo soon after just buying a new house and a 15 month old baby!

No she dosen't have a sister.

I need to convince her that my ZR needs rims before we decorate the dining room.

Anyone have any ideas?

kcobean

iTrader: (2)

You know, I'm honestly surprised to hear how many people are in the same boat as me. Wrote a check for the car (Thank you booming NoVA real-estate market), and despite the 5 year old son, the wife, etc., I still get to do fun stuff to the car. Lovin' every minute of it, and still have about 75K in equity in the home....Life is good.

rolling

iTrader: (2)

wow congrats you guys mabey someday ill be as rich as you alll!

FairladyZ

Thats the thing they are not rich. They are borowing against their homes, 2nd mortgages. etc becuase they need the etra money for one thing or another. If they were rich they would pay for it with saved money or buy it normally.

Usually poeple take a 2nd mortgage for remodeling parts of their house. They usually plan on staying their or retiring because the are basically upside down on the house (most cases depending on equity).

My old man would like to pay off his home, the more you borrow against it the longer it takes.

maxwell72764

Paid cash. I'm 46 and have driven many POS mobiles and saved to do this. DO NOT BORROW AGAINST YOUR HOME! House values go up. Car values go down. You are throwing your hard earned money at banks and brokers rather than to your family and self.

Personally I feel if you need to borrow to buy a car like this, you shouldn't get it. But then again, I'm old fashioned. Yeah, I realize people look and say "old farts shouldn't drive that" but what they don't realize we've worked hard, put our kids through college, paid off our houses, and have no other responsibilities, so a vehicle like this is just a toy we can afford. Before getting all the cool toys, please look to your future. Do you want all the good stuff now and work your a$$ of until you are 65 or 70 and then live on limited income, or would you rather do with out some now and be able to retire around 50 and be able to live comfortably for the next 30 years of your life? I've made my choice.

Please don't look at this as a rant. It's my personal views and I know they are far from universal.

mdacko

iTrader: (3)

500/month for 5 yrs.

not old enough to be writing a check for the car, but the payments arent too hard to make.

davidgaddy

I didn't know people were that stupid.

FairladyZ

Thats what I was thinking, but then you could say that they are paying themselves.?.

For instance my old man bought one of his previous cars with his stocks. He then paid himself back for the car so the interest went to him instead of the credit union. Actually made money off of the car, it worked out really well. This was years ago, before the "stock market crash". When people went from millionairs to the poor house.

arvin

iTrader: (2)

The way I see it.........if I use my home equity line of credit to purchase my car, it's like a 30 year loan. I'd rather get a 5 year loan with a big downpayment.

Outlaw

Mine is paid off

EatMyZ

$512 for the next couple of years

Mantis3024

I traded in my mustang, which was paid off. That took off 10. Put another 10 down. Now paying ~$500/month for about 2 years

orion350z

"Credit 101"

The reason some businesses do this is due to the credit card fees. For every dollar a company processes on your credit card, they owe a certain percentage to the credit card company.

(Some companies don't mind this due to high profit margins. Car dealerships generally have much thinner profit margins than other places of business; net/retail. Often, businesses have anywhere from 50%-80% retail markup. This would be absolutely unrealistic of a car dealership to accomplish, unless they expect you to pay 60k for your 350Z.)

There are variances in this due to if a credit card is processed over the phone, or through a card swipe. So, if you were to pay for a 36,000 dollar car on a credit card, about 2-3% of that on average would be owed to the credit card company for processing fees. Nissan would much rather see your money than to give it to another bank for service fees.

This subject has a thousand variances, but hopefully it sheds some light on the magical, often evil world of credit.

kcobean

iTrader: (2)

Despite the fact that I'm one of the foolish ones who used the equity in my home to buy my car, I completely agree with you.

Not to disclose too much personal info, but I bought my house for $184K five years ago. It's now valued at over $325K. I did a cash-out refinance to a lower rate so the monthly hit is pretty minimal. Am I still financing my car over 30 years? Yeah, I sure am, but we only plan on being in this house for another 5 years or so, so when we sell, I will effectively be 'finishing' the loan on my car and I will still make enough to put a fat down payment on the next house we buy. One of the reasons I did this is because I don't have perfect credit (thank you, foolish youth), so by financing the car through a traditional loan, I would have gotten a much higher interest rate. There is some method to my madness, though it may not seem so on the surface.

This is probably more information about myself than I should disclose in such a public forum, but I wanted you (and davidgaddy, who used far less tact than you to call me an idiot) to know that some of us thought it through before we signed on the dotted line. Short-term use of equity at low rates is just using my money differently than others choose to do it.

Peace out!

Risk

Im 26 years old and actually saving to buy my first home this year....Im excited!! As far as the car goes, Ill be paying for the next 5 years on it, but I love it so its all good.

z_drifto

I just got my check from insurance. Now my Z loan is paid off, yay, i guess.

FLZ_Boy

I'm stuck paying roughly 580 a month for 5 years. I figured instead of paying off the car, I can earn more in the long run through investments.

maxwell72764

kcobean, Always exceptions to every rule or theory. What makes it an exception is the fact you thought it through and made the rational choice (if you can say buying a Z like we did 'rational')



And Risk, congrats on the purchace of a house move! Wish you well.

hypeiv

iTrader: (2)

Exactly... I almost have enough to pay off my car in mutual funds and stocks but I would rather keep that money there earning at least 4%-10% more per year than what my intrest rate is. If I cashed them out the only thing I would have is a paid off car that is losing value every second.