Perfect, got it!
However, I think it would be wise just to do the approval now and get it out of the way(regardless of the rate) but by changing to Loan...will my EDD change to a later date?
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
However, I think it would be wise just to do the approval now and get it out of the way(regardless of the rate) but by changing to Loan...will my EDD change to a later date?
The approval is only for 90 days, if it expires they will ding your credit again. The rate lock is 30 days.
that's what they say about the rate... I took delivery in about 40 days after I got the loan approved and it changed two times (total 3 rates) from Nov 1 to Dec 10... and there wasn't an option to decline it, it just pops up on your screen and force you to acknowledge it or decline the loan
I got told you can increase your downpayment until about 48 hours before. Trying to reduce it will generate another credit application
heavyD
Member
96 months is crazy for a car loan. If you need to get your monthly payment that low it may be a sign you probably can't afford the vehicle.
If you don’t have the income or savings, for sure.
As long as you have a low interest rate and invest the difference you would’ve spent on the car, you will make more with your investments rather than paying off a low % interest rate
Says someone with clearly no economics / interest rate understanding...
Currently car loan interest rate is lower than inflation... Basically you are being paid to borrow money my friend. Borrow it as long as you can and invest your extra income to make more money!
PS: Seriously consider taking a course on financial planning... Your avatar seems accurate
exactly why I stretched mine out as long as possible and kept as much in investment as possibleSays someone with clearly no economics / interest rate understanding...
Currently car loan interest rate is lower than inflation... Basically you are being paid to borrow money my friend. Borrow it as long as you can and invest your extra income to make more money!
PS: Seriously consider taking a course on financial planning... Your avatar seems accurate
heavyD
Member
Since you are all in on negative equity loans I assume you are also going to tell me that a balloon loan is a good idea as well? Or maybe you will tell us how you got wealthy just off $5.99 Questrade commission fees lol. If we were talking about 0-1 or even 2% financing you would be correct but 3.35% financing is not a great interest rate for 96 months. It's an extra $10k on the price of a model Y over 96 months for example. I am doing 60 months on my BMW at 0.49%. That's much closer to a free loan and how to do it the right way.Says someone with clearly no economics / interest rate understanding...
Currently car loan interest rate is lower than inflation... Basically you are being paid to borrow money my friend. Borrow it as long as you can and invest your extra income to make more money!
PS: Seriously consider taking a course on financial planning... Your avatar seems accurate
After checking I see Tesla is now over 3% for all terms now which gives less incentive to opt for lower terms but the reality is that anyone that has any economic education would advise against a 96 month automobile loan. There are thousands of articles online illustrate why they are a bad idea. They are designed to get vehicles in the hands of people that can't afford them and are not a means of being paid to borrow money lol (funniest thing I have heard on the internet this week).
Last edited:
I majored in economics, with business minor and also completed an accounting diploma. 96 month loan is the best value over time when you calculate time value of money.Since you are all in on negative equity loans I assume you are also going to tell me that a balloon loan is a good idea as well? Or maybe you will tell us how you got wealthy just off $5.99 Questrade commission fees lol. If we were talking about 0-1 or even 2% financing you would be correct but 3.35% financing is not a great interest rate for 96 months. It's an extra $10k on the price of a model Y over 96 months for example. I am doing 60 months on my BMW at 0.49%. That's much closer to a free loan and how to do it the right way.
After checking I see Tesla is now over 3% for all terms now which gives less incentive to opt for lower terms but the reality is that anyone that has any economic education would advise against a 96 month automobile loan. There are thousands of articles online illustrate why they are a bad idea. They are designed to get vehicles in the hands of people that can't afford them and are not a means of being paid to borrow money lol (funniest thing I have heard on the internet this week).
heavyD
Member
What did economics teach you about 96 month loans on depreciating assets? It's bad economics and this is the first time I have ever heard anyone try to spin 96 month car loans as a good thing. They are only a good thing for automobile dealers. What's next? Will someone here try to claim that paying $10k for FSD is some sort of investment?
a-Sarkar
Member
You need a new application every 90 days PLUS they will do another credit check about 24 hours before delivery to confirm nothing wild has happened. So even if you are in a 90 day period, if you get a new loan, your finance might be declined right before delivery. Trust me, I know from experience haha I had to do some magic to get the car..
Depends on the bank, mine is Scotia at 3.48 96 months. Got it last week. BMO is slightly cheaper
tesla offered my 3.08 today for under 60 months? why aren't people going with tesla?
Similar threads
- Article
