long term financing?

[adamlotus]

where do you guys recomend a longer term financing longer than 72 months for a new viper?
thanks

 

[DodgeViper01]

There are plenty of companies out there but I would stronger recommend against it. I have seen up to 144 month financing and it is just horrible. You end up paying almost double to loan amount.

 

[twinturbo3150]

OUCH!!!!! I would be looking at something more in your budget if you have to finance a car for more than 72 month's. Save a few thousand to put down on a viper so you wont have to finance as long.

 

[nazology]

You can do long term financing. The bottom line is depending on the interest rate, which my guess now would be around 7.6 and over, you could get long term financing with a payment from 1,000 to 1,300, but the truth of the matter is your not paying much of the principal down, so when the car depreciates you take a bigger hit if you ever go to get rid of it. But if you want to drive a viper for 2 years, and pay 1250 a month its worth it I guess.

 

[adamlotus]

thats all i would probaly keep the car is 2 years and get something else,i heard a comapny that does alot of vipers which the owner is a viper guy.for someone who will keep the car for long lengths i totally agree with you all thats long term is a horrible way to finance.
thanks

 

[BJ MOTORS]

E-Loan

 

[Nader]

I did mine through Chase which has fantastic customer service and decent rates. I did the same financing 72 months and was shopping for cars much more expensive than the Viper. In the end, I would rather have a lower payment since I am sure that this loan will not go the full term of 6 years. Frankly this is the longest I ever owned a car for. I have owned my car for a year and a half and depending on what I see with the new Viper will depend on whether this loan is carried forward - meaning if I trade my car in or sell it.

 

[RedLiner]

If you own a home or condo, take out a home equity/second mortgage. At least you would be able to write off the interest. They do up to 30 yrs on home equities now. Payments would be real cheap, but would barely touch principle.

 

[Sam 01 RT10]

Chase and BofA will go out to 84 months, Amtrust has decent rates out to 96 months.

 

[valentine_viper]

This is probably not what you want to hear, but if you have to finance a car for more than 4 years to make the payments "affordable", you can't afford it. In the end, you have to remember that even though it's a Viper, it's still just a car (and an adult toy at that) and not worth ruining your finances over.

I am a mortgage broker and I deal with people who have gotten financially "in over their heads" every day. In many cases, buying expensive cars they couldn't really afford was a big part of the problem. Living the American dream can quickly become a nightmare if you don't apply some financial common sense to your decisions.

I'll climb off my soapbox now.

 

[viperbob]

Check with a credit union, if applicable. For example, Navy Federal has 5% for 72 months. If you can get a low rate you can finance for a shorter term and pay more principle each payment you make. And if you have the coin, pay more on the earliest payments to get the balance down so you'll pay less interest.

 

[Stray Cat]

5.95 for 72 months or 6.95 for 84 months at Universal One Credit Union in Dayton Ohio.

Go with the 5.95 @72 months. Add an extra 100 per month and you get the car paid off early and your interest isn't too bad.

John

 

[plumcrazy]

im with valentine_viper. dont buy it if you cant afford it.

PAY CASH !

i had to wait a few years till i saved it up, but i got it. it just isnt worth going into long term debt for a car. anything over 3-4 years is just stupid if ya ask me.

 

[zen garage]

I would be more than happy to carry the paper on a car if you like. What time frame are you interested in?

 

[Bill Pemberton Woodhouse]

We have a Viper Banker who does 96 months at 7.5% with 10% down and a Beacon Score of 700 higher. Surprisingly we have done quite a few for business owners who keep their cash freed up for expansion,etc. while locking in a low rate for a very long term --- whereas their business loans may be a bit less , they are variable from year to year. Term for loans always causes alot of discussion, but surprisingly some of the answers why ( especially with Viper owners ) can be quite different than what you might expect with buyers of other vehicles.

As the mortgage banker suggested , a loan of 48 months may be his recommendation, but with so many factors with each individual, I think he would agree with me that to say everyone should only get a 15 year note on a home, doesn't factor in why many prefer or want a 30 year mortgage payment.

Respectfully Submitted,
Bill Pemberton
Woodhouse

 

[elanderholm]

Most credit unions now offer 84 months and if you have a good credit score you should get the same rate as 60 or 72 months. I did this exact thing on a different car. I go through a credit union here in Oregon and if you score is high enough (mine is like 780) you get the same rate for any loan length. I think I got low 6's back in august for 84 months.

 

[Gen3Fan]

My credit union is offering 5.8% fixed rate up to 72 months either new or used car, does not matter. I just got approved today. The rate at my credit uninon is the same regardless of the lenght of the loan. I took the 72 month just in case even though I plan to pay it back faster. I was dissappointed that a high credit score does not earn a lower rate, but 5.8% is a better rate than they are offering on a fixed rate home equity, which is currently 7.37%.

 

[valentine_viper]

We have a Viper Banker who does 96 months at 7.5% with 10% down and a Beacon Score of 700 higher. Surprisingly we have done quite a few for business owners who keep their cash freed up for expansion,etc. while locking in a low rate for a very long term --- whereas their business loans may be a bit less , they are variable from year to year. Term for loans always causes alot of discussion, but surprisingly some of the answers why ( especially with Viper owners ) can be quite different than what you might expect with buyers of other vehicles.

As the mortgage banker suggested , a loan of 48 months may be his recommendation, but with so many factors with each individual, I think he would agree with me that to say everyone should only get a 15 year note on a home, doesn't factor in why many prefer or want a 30 year mortgage payment.

Respectfully Submitted,
Bill Pemberton
Woodhouse

A home is an appreciating asset that also provides tax benefits, so not a big deal to go wit 30 year financing. A car, on the other hand, is a non-tax deductable, depreciating asset that can quickly become a major liability if you get "upside-down" on it. This is what typically happens when to do long term financing on a car. ***** to be stuck with something that you owe more on than it's worth no matter how much you may enjoy driving it.

Just my .02 cents...

 

[valentine_viper]

My credit union is offering 5.8% fixed rate up to 72 months either new or used car, does not matter. I just got approved today. The rate at my credit uninon is the same regardless of the lenght of the loan. I took the 72 month just in case even though I plan to pay it back faster. I was dissappointed that a high credit score does not earn a lower rate, but 5.8% is a better rate than they are offering on a fixed rate home equity, which is currently 7.37%.

5.8% is a very good rate, however it won't be tax deductable. You might actually make out better taking the home equity loan at 7.37% where the interest can be written off.

 

[Bandit3]

Just what my accountant told me---home equity is the way to go.

 

[slaughterj]

I was dissappointed that a high credit score does not earn a lower rate, but 5.8% is a better rate than they are offering on a fixed rate home equity, which is currently 7.37%.

That's something I've been wondering about, why it is that car loans are lower than HELOCs?! The latter is still secured, and secured by a more significant asset!

 

[Bandit3]

Forgot--- I'm only going five years.

 

[Gen3Fan]

One thing I don't like about using a home equity loan is this:

If you borrow $70k for 30 years at 7.5%, you end up paying $106,202 (much more than the price of the car) in interest alone (assuming that you don't make accelerated payments). Yes, you do get to deduct the interest and yes, this $106,202 becomes less if you sell the car and pay off the principle earlier.

If you borrow the $70k for 6 years at 5.8% instead, you pay $13,052 in intest over the 6 years.

The other thing is that if the home equity loan puts you close to the value of the home, you could end up "upside down" on your home if home prices go down temporarily.

 

[viperbilliam]

For those of you who do their own taxes would probably know that the tax write-off on interest is overrated - you're not going to save that much on your taxes. In the above example of 5.8% vs 7.5%, the latter, even though it can be written off, isn't really any better in the long run. I think the difference needs to be at least 1% or less to go with the equity loans. You need a lot more discipline to pay additional principal to keep from paying too much interest. I personally think a long term with low interest but with at least 10% down isn't a bad way to go. It will help if the vehicle doesn't depreciate too quickly. Otherwise a lease with a low interest rate is a good alternative.

 

[PittsburghRT]

I think my dad gave me the best advice. "Never finance a toy."