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What is best financing rate now?
- Thread starter bartekr
- Start date
THX723
Member
That’s only the case with a typical secured loan....where the car is held as collateral. With an unsecured loan the car is not held as collateral and the buyer is the owner of the vehicle and no lien is required.
The nature of an auto loan is a secured loan. There is a difference for the bank between a personal loan and an auto loan. A personal loan could be unsecured but the proceeds should not be used to buy a property car. If this is done, it is deceitful. I was a banker for 30 years and this bv was the MO. Unless things change today, which I doubt. If you try to apply on li or e for a loan the bank will offer the following categories: Mortgage, Personal, Auto etc. I hope this help.
THX723
Member
According to Lightstream, if qualified for their unsecured loan, there is no need to involve them as the lien holder or as loss payee on insurance policy.
Not an expert here. Hopefully no funny business involved. Below is an excerpt from their approval letter.
Thanks for the info. I still can’t figure out why I wasn’t approved for unsecured. I have good credit and income but I’m self-employed so maybe that’s it. I applied for a 50k loan, maybe they’d switch me to unsecured if it was 30k or something?
Then again, I guess it doesn’t really matter.
Thanks for the direct quote. It makes sense. If you are financially qualified for an unsecured loan, it could probably pass. However, the banking industry is extremely regulated and when the bank inspectors get involved things could get messy. The language you quoted from Lightstream seems to make it the borrower's problem to name them as a lien holder. This is not right. Peace brother. I hope I didn't complicate the matter.
@BBEagle maybe this screen shot will help clarify it. I honestly didn’t know anything about unsecured auto loans until recently. I’ve always thought all auto loans were secured. They are not making it the borrowers problem to name the lien holder...because there is no lien holder....with an unsecured auto loan.
Brenzo
Member
Where was the option to make a donation during the sign up process for Tower FCU? It only presented me with the other options based on employer / residency
I confirmed by email that there is no pre-payment penalty. This is in Canada but I assume one and the same.
Brenzo
Member
I feel that very few lenders have a pre-payment penalty, usually only requirement is minimum of 60-120 days from loan origination date until when the loan can be paid in full.
I have been approved for a 36m 0.99% rate with 20% down, and a 60m 2.39% rate with 0% down and can't really decide which to go with. I am financially in a place that the $1,350 monthly payment wouldn't put a huge strain on me and it would save about 3K over the course of the loan. But having roughly $350 extra a month to put into investments instead of a car loan also seems like a positive. What to do....opinions?
If you are certain that you will invest the $350 difference, by all means get the lower payment. You can open an account at a discount brokerage firm and put in the 350 monthly.
Pandamoanium
Member
HA! This reminds me of my local LR dealer. They had to turn a few customers away because of this exact issue. Also made me sign an agreement to not export the RR we got. Good ol days.
THX723
Member
For those with an unsecured loan, what have you done about GAP insurance or the lack of?
My understanding is that GAP insurance wouldn't apply. Seeing as how the average cost to repair Tesla has been quite high, it may be a risk to not have GAP.
My understanding is that GAP insurance wouldn't apply. Seeing as how the average cost to repair Tesla has been quite high, it may be a risk to not have GAP.
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