1.49% loan for 60 months at Stanford credit union

[Av8rrob]

Hey everyone, I just picked up my beautiful Blue/cream/LR/21” model S the other day. I was able to join and use SFCU for the financing. The standard rate they offer is 2.5% however if you start a checking account with direct deposit and put at least $25k in a savings account they lower the rate to 1.5%! This is for a 60 month loan at up to 110% financing. Just to be clear, I did not attend Stanford and I dont live within 100 miles of a branch, however they are an easy bank to work with on the phone and online. Also super easy to join and “qualify” for membership. So, if you are interested in joining they have a promotion of a free $100 for you and me via a referral link. Send me a PM and I can hook u up

Rob

 

[Ostrichsak]

Throwing another ~$10k of cost into a ~$100k rapidly depreciating asset is great news? Okay.

 

[fldude]

Throwing another ~$10k of cost into a ~$100k rapidly depreciating asset is great news? Okay.

I mean at 1.5 percent, that cash is better off being invested versus paying in full

 

[Ostrichsak]

I mean at 1.5 percent, that cash is better off being invested versus paying in full

Sure. If you assign a Q-factor of zero... which if you can find a risk-free investment be sure to let the rest of us know.

 

[Trunk Gap]

Geez lighten up the guy is just trying to help people looking for a good rate.

 

[Ostrichsak]

Geez lighten up the guy is just trying to help people looking for a good rate.

I'm just trying to help people realize how much money they're losing on financing brand new cars. Then again, I LOVE buying them 4 years later for less than half of what they cost new so... That's a great rate folks! Sign up! Hell get two! lol

 

[Trunk Gap]

Not sure anyone asked your financial opinion, nor that you’ve established any qualifications that would deem that we should.
Except for your 2 2016 Model S’ which could convey a number of things (yes, including being a savvy buyer who feasts on depreciated vehicles, nothing wrong with that!). Different financial vehicles work differently for different situations. Just tired of the judgment associated with peoples choices/different vehicles. This isn’t a what’s best thread, it’s a heads up for those interested.

 

[Bleedblue82]

Love the idea that financing a car at 1.49% makes you a rube. Depression era thinking is a liiiitle out of date my guy.

I personally really enjoy the spread I’ve been making on financing but keep stuffing the mattress full of cash.

 

[Joe85sti]

I'm just trying to help people realize how much money they're losing on financing brand new cars. Then again, I LOVE buying them 4 years later for less than half of what they cost new so... That's a great rate folks! Sign up! Hell get two! lol

Pretty confident that people buying $80k+ cars understand that new vehicles depreciate, and it's a loss we're willing to accept to have the latest and greatest. As mentioned above, I'd much rather finance the whole price of the vehicle at 1.5%, that's essentially free money and you can easily outperform it with relatively low risk S&P Index funds over the lifetime of the loan.

If you buy a LR @ $80k, put zero money down, at an interest rate of 1.5%, you end up paying $3,704 in interest over the life of the loan. If you put $16k down (20%), you pay $2,963 in interest, so savings of $741. Now, if you do the zero down, and put that $16k into an index, which on average returns at about 9.8%, you end up making $12,000. Minus the interest, and you're actually up $8,296...which helps curb that depreciation. This is why down payments are dumb if interest rates aren't absurd.

 

[Ostrichsak]

Not sure anyone asked your financial opinion, nor that you’ve established any qualifications that would deem that we should.
Except for your 2 2016 Model S’ which could convey a number of things (yes, including being a savvy buyer who feasts on depreciated vehicles, nothing wrong with that!). Different financial vehicles work differently for different situations. Just tired of the judgment associated with peoples choices/different vehicles. This isn’t a what’s best thread, it’s a heads up for those interested.

So you need my bona fides to legitimize my claims that paying ~$10k interest on a note for a ~$100k vehicle that will be worth $50k in 3-4 years isn't a good investment?

 

[Ostrichsak]

I love all of the "financial experts" who ignore risk when making "sound" financial decisions. Keep playing that "spread" to gain wealth. Nobody has ever gone broke doing that. /sarcasm

Listen, it's your money and you can do what you will with it. That's what I love about this country. Just don't come on here trying to justify your risky financial moves as some sort of sound financial advise for people who don't know any better.

 

[Bleedblue82]

Yeah I’d actually love to hear what makes you qualified to offer investment advice. You seem super confident in offering your own brand of ultra risk averse 1935 investing philosophy.

If your contention is “buying new cars is not a sound investment” I guess thanks for that news flash? No one is sitting around thinking they’re big balling by arbing the spread between bank rates and the equity markets - once you’ve made the decision to buy new it’s about mitigating expenses.

But please do continue telling us how you’re a financial genius for buying used cars…

 

[Drew-MS]

Sure. If you assign a Q-factor of zero... which if you can find a risk-free investment be sure to let the rest of us know.

Wait until 10yr yields are back above 2% and then triple tax free muni bonds. The Fed doesn’t seem interested in acknowledging it, but hyper inflation is coming.
Fed funds rate won’t stay at 0% forever.

 

[Drew-MS]

I'm just trying to help people realize how much money they're losing on financing brand new cars. Then again, I LOVE buying them 4 years later for less than half of what they cost new so... That's a great rate folks! Sign up! Hell get two! lol

Unless Tesla continues to raise prices due to strong demand and/or parts shortages.
This may help existing owners ..

 

[Ostrichsak]

Yeah I’d actually love to hear what makes you qualified to offer investment advice. You seem super confident in offering your own brand of ultra risk averse 1935 investing philosophy.

If your contention is “buying new cars is not a sound investment” I guess thanks for that news flash? No one is sitting around thinking they’re big balling by arbing the spread between bank rates and the equity markets - once you’ve made the decision to buy new it’s about mitigating expenses.

But please do continue telling us how you’re a financial genius for buying used cars…

It doesn't require an advanced degree in finance to understand these basic concepts: don't spend more than you make. Do that and things like inflation, stock market collapse, housing market bubbles... none of it matters. A couple of decades ago I thought this same way. I was young and fell for this same BS logic and when 2008 hit my world collapsed. This idea that playing spreads on interest rates will burn you. Learn from history or repeat it.

As for being a financial genius for buying used cars... I wouldn't go that far. When you compare the fact that I make tens of thousands of dollars in a segment that 99% of people lose tens of thousands of dollars though you can see how the delta can be substantial enough to make a difference in one's net worth. Weekly I have conversations with people who ask me how I do it and say they just "can't get ahead" when they drive two new vehicles every 6-12mos and then act clueless as to where all of their income goes at the end of the month.

It's pitiful how simple it is to be successful with money but I guess that's not the glamorous thing and doesn't impress any neighbors so it's not the popular path. People just want to borrow up to the limit they can afford each month and worry themselves into an early grave over stupid financial issues they brought on themselves.

Then they want people like us who have been smart about money to bail them out for their lack of financial intelligence even at a basic level. That's when the conversation gets irritating.

Your statement about "once you've made the decision to buy new" is akin to deciding to drive your car into a cement wall and now the argument is about if 50mph is safer than 55mph. I'll just avoid the wall entirely since it's an easy decision to make.

 

[Ostrichsak]

Unless Tesla continues to raise prices due to strong demand and/or parts shortages.
This may help existing owners ..

It doesn't flatten the curve on new vehicle depreciation. This curve doesn't care if it's June or July or if it's even Tesla or Ford. Bran new vehicles drop like a rock in value over the first couple of years and it tapers off nearing the 4ish year mark. This is a fact and not opinion. Singing yourself up take that loss is one thing but financing is a whole other level of stupidity, regardless of the interest rate.

 

[Drew-MS]

It doesn't flatten the curve on new vehicle depreciation. This curve doesn't care if it's June or July or if it's even Tesla or Ford. Bran new vehicles drop like a rock in value over the first couple of years and it tapers off nearing the 4ish year mark. This is a fact and not opinion. Singing yourself up take that loss is one thing but financing is a whole other level of stupidity, regardless of the interest rate.

Different times now with chip shortages, parts shortages, high demand, etc.. You can think whatever you want about the current times and I’ll do the same.
Since I’m not taking out a loan, it doesn’t matter to me. Regardless, you are saying a new Tesla purchased 2 years ago has dropped like a rock in value. I’m going to say that’s rubbish. In mid-2021, this is fact and not opinion. In different times, you’d be correct.

 

[Ostrichsak]

Different times now with chip shortages, parts shortages, high demand, etc.. You can think whatever you want about the current times and I’ll do the same.
Since I’m not taking out a loan, it doesn’t matter to me. Regardless, you are saying a new Tesla purchased 2 years ago has dropped like a rock in value. I’m going to say that’s rubbish. In mid-2021, this is fact and not opinion. In different times, you’d be correct.

Look at you cherry picking a car from EXACTLY 2 years ago when they were at their lowest price historically like nobody would notice. How cute.

If you're trying to pass that off as something I said... show me where I said that. Go ahead, I'll wait.


You won't find it because I didn't say it. What I said (in no uncertain terms) was that a brand new vehicle (this means ANY brand and ANY model year) would lose roughly 50% of it's value within the firs t4-5 years. The historical data supports this statement in a pretty obvious way to leave little for debate. You trying to cherry pick a statistical anomaly where the prices were lower two years ago and now there's an unprecedented global shortage of materials for production as some sort of evidence to the contrary might work on other schoolers but I'm not falling for it.

If you want to take that ~$50k hit in the first 4-5 years AND drop another ~$10k on interest for the privilege to do so... by all means. This is America. Knock yourself out. Just don't try to convince us all that it's a wise and prudent financial/investment strategy.

 

[Drew-MS]

Look at you cherry picking a car from EXACTLY 2 years ago when they were at their lowest price historically like nobody would notice. How cute.

If you're trying to pass that off as something I said... show me where I said that. Go ahead, I'll wait.


You won't find it because I didn't say it. What I said (in no uncertain terms) was that a brand new vehicle (this means ANY brand and ANY model year) would lose roughly 50% of it's value within the firs t4-5 years. The historical data supports this statement in a pretty obvious way to leave little for debate. You trying to cherry pick a statistical anomaly where the prices were lower two years ago and now there's an unprecedented global shortage of materials for production as some sort of evidence to the contrary might work on other schoolers but I'm not falling for it.

If you want to take that ~$50k hit in the first 4-5 years AND drop another ~$10k on interest for the privilege to do so... by all means. This is America. Knock yourself out. Just don't try to convince us all that it's a wise and prudent financial/investment strategy.

You have some good points. I was just talking about the present. Either way, it’s not that serious so I’m just gonna agree with you. Cheers

 

[Trunk Gap]

Clearly no one is taking your advice here.
There isn’t a blanket statement that covers all bases with regards to most things in life. Certainly financial products.
You come off brash, judgmental, and uninformed. Your arrogant stance about all the great financial success you’ve enjoyed (apparently not enough to drive a modern Model S, unless you prefer the older models, I presume?) tells those who really do those things “stay away from this guy”. No offense, just sharing how you come off. Given all the energy you‘ve put into your posts, I imagine that does matter to you.
Good luck to you. Happy 4th.