topic Re: I dont want a auto loan, but I am crazy to do this? in Auto Loans

I dont want a auto loan, but I am crazy to do this?

AzCreditGuy — Tue, 10 Oct 2023 02:02:02 GMT

I just sold my car over the weekend and the owners will be picking it on Sunday.

My 1st Porsche 911 was bought on an Amex credit card a long time ago and it seems my next 911 will also be bought on a credit card.

With B of A I have a CL of $62k and I plan on using $32k of it, payment would not be due till Nov 28th. At that time I plan to pay cash to the card in the amount of $12k and do a balance transfer for $20k on US bank. Total with BT would $20,898

I plan to ride this BT until its end, thinking the payments will be $500 to $600 with a $10k payment in March 2024, which will bring down the balance to around $10k, at that time I will look for other BTs or just ride it out....

I know this sounds crazy but I have planned ths out on a sheet and its my way to avoid getting a auto loan or use a credit inquiry for the loan

I would not be opposed to a business car loan, but at the rates that are being offered I feel my plan I would pay less interest as long as I pay off the $10k before the BT period runs.

Yes I am aware that my credit will suffer since my US bank will be at a 80% UTI, but for now I dont care as I have zero plans to get new credit and or loans or a mortgage for the next 8 to 10 months

My only concern is B of A seeing a $32k charge and they deny it, I wonder if I should call them?

Re: I dont want a auto loan, but I am crazy to do this?

Harvey26 — Tue, 10 Oct 2023 04:39:00 GMT

@AzCreditGuy The plan isnt a bad idea but most dealers dont allow more then like 3500 on a card due to the processing fees. But if the dealer allow it then great. Just make sure you pay it off in time. I would recommend auto pay. Hopefully you are earning rewards.

Re: I dont want a auto loan, but I am crazy to do this?

AzCreditGuy — Tue, 10 Oct 2023 20:54:50 GMT

$35k on a CC approved lol....I have to say B of A didnt fail on this deal and I am getting my Porsche next week.....

This is true buying power and CL being used here and to think, this card started off as a secure card and it now is $62k for a CL...

Re: I dont want a auto loan, but I am crazy to do this?

AzCreditGuy — Thu, 19 Oct 2023 20:40:29 GMT

I got all my paperwork to sigh and I had to send it my legal shield, so they could take it a look at it. Seems I was sent paperwork that included forms for a loan? Even though it was paid as cash through my CC? There was also a form about selling my info? lol....I have never gotten a vehicle from a dealership, they have always been private party and cash....I find SC interesting with the forms I was sent

Re: I dont want a auto loan, but I am crazy to do this?

AzCreditGuy — Sun, 29 Oct 2023 19:18:10 GMT

Just a FYI for the board I got my statement for B of A in the amount of $29k and a monthly min payment of $259. Wow oh Wow that amount doesnt even coever the $519 interest that the $29k 30 day interest compounds at. Its insane to think that there some people out there that have to deal with this debt and including myself in the past, before I become aware of min vs larger payments. I am so glad I am able to BT this amount and just incurr $1k of interest over 8 months vs $519 every month

Re: I dont want a auto loan, but I am crazy to do this?

pizzadude — Fri, 03 Nov 2023 18:15:13 GMT

Yeah with an interest rate north of 20%, you'd for sure be paying over $500 in monthly interest. Glad that you can BT to another card.

Did the dealer charge you any fees for the credit card transaction ?

Re: I dont want a auto loan, but I am crazy to do this?

AzCreditGuy — Sat, 04 Nov 2023 18:23:27 GMT

@pizzadude wrote:
Yeah with an interest rate north of 20%, you'd for sure be paying over $500 in monthly interest. Glad that you can BT to another card.

Did the dealer charge you any fees for the credit card transaction ?

Of course they did at 4% but in the long run even with the BT fee I am still ahead....was also charged $1200 for delivery as well but I understand this is the part of doing business the way I wanted vs a car loan

Re: I dont want a auto loan, but I am crazy to do this?

Beefy1212 — Sat, 04 Nov 2023 21:24:58 GMT

@AzCreditGuy wrote:
@pizzadude wrote:
Yeah with an interest rate north of 20%, you'd for sure be paying over $500 in monthly interest. Glad that you can BT to another card.

Did the dealer charge you any fees for the credit card transaction ?
Of course they did at 4% but in the long run even with the BT fee I am still ahead....was also charged $1200 for delivery as well but I understand this is the part of doing business the way I wanted vs a car loan

When I bought my F150 the dealer didn't charge me a transaction fee on 10k I wouldn't say it is a given...

You effectively finanaced at 7.12% apr, not great not terrible if you really wanted to avoid a new autoloan.

Re: I dont want a auto loan, but I am crazy to do this?

youngandcreditwrthy — Wed, 08 Nov 2023 05:23:04 GMT

Ive purchased cars like this before with those BOA checks. The best thing about it is you get to hold the title in your hand early.. and it's an asset you already own. unsecured debt is the best!

Re: I dont want a auto loan, but I am crazy to do this?

AzCreditGuy — Thu, 09 Nov 2023 21:35:32 GMT

@Beefy1212 wrote:
@AzCreditGuy wrote:
@pizzadude wrote:
Yeah with an interest rate north of 20%, you'd for sure be paying over $500 in monthly interest. Glad that you can BT to another card.

Did the dealer charge you any fees for the credit card transaction ?
Of course they did at 4% but in the long run even with the BT fee I am still ahead....was also charged $1200 for delivery as well but I understand this is the part of doing business the way I wanted vs a car loan
When I bought my F150 the dealer didn't charge me a transaction fee on 10k I wouldn't say it is a given...

You effectively finanaced at 7.12% apr, not great not terrible if you really wanted to avoid a new autoloan.

Also a credit ding and a lien holder....So I will take my 7.12%

Re: I dont want a auto loan, but I am crazy to do this?

AzCreditGuy — Thu, 09 Nov 2023 21:36:41 GMT

@youngandcreditwrthy wrote:
Ive purchased cars like this before with those BOA checks. The best thing about it is you get to hold the title in your hand early.. and it's an asset you already own. unsecured debt is the best!

Yes title is my name and correct on all points

Re: I dont want a auto loan, but I am crazy to do this?

AzCreditGuy — Mon, 05 Feb 2024 20:52:07 GMT

Update

When all was said and done here is the interest I am ending up paying on B of A and other cards for my plan, a thank you to @Kforce who tried to help me figure out what B of A was doing with the interest rates, somehow I ended up coming ahead

B of A total interest paid $916.51 for intial charge of vehicle purchase

Wells Fargo $19.40 for the **bleep** sales tax I got charged

US Bank 0% APR and charge of $748

Total $1,683.91

Not bad and its not 60 months but more like 6 to 10 months and its paid off on the 0% APR and I own the car outright vs a lien

Re: I dont want a auto loan, but I am crazy to do this?

coldworld — Mon, 05 Feb 2024 22:50:33 GMT

@AzCreditGuy wrote:
Update

When all was said and done here is the interest I am ending up paying on B of A and other cards for my plan, a thank you to @Kforce who tried to help me figure out what B of A was doing with the interest rates, somehow I ended up coming ahead

B of A total interest paid $916.51 for intial charge of vehicle purchase
Wells Fargo $19.40 for the **bleep** sales tax I got charged
US Bank 0% APR and charge of $748

Total $1,683.91

Not bad and its not 60 months but more like 6 to 10 months and its paid off on the 0% APR and I own the car outright vs a lien

Appreciate the follow up on this! Random question: how did the transaction code on your credit card? Trying to see if there's a way to earn a ton of points AND avoid a car loan.

Re: I dont want a auto loan, but I am crazy to do this?

AzCreditGuy — Tue, 06 Feb 2024 13:25:02 GMT

@coldworld wrote:
@AzCreditGuy wrote:
Update

When all was said and done here is the interest I am ending up paying on B of A and other cards for my plan, a thank you to @Kforce who tried to help me figure out what B of A was doing with the interest rates, somehow I ended up coming ahead

B of A total interest paid $916.51 for intial charge of vehicle purchase
Wells Fargo $19.40 for the **bleep** sales tax I got charged
US Bank 0% APR and charge of $748

Total $1,683.91

Not bad and its not 60 months but more like 6 to 10 months and its paid off on the 0% APR and I own the car outright vs a lien

Appreciate the follow up on this! Random question: how did the transaction code on your credit card? Trying to see if there's a way to earn a ton of points AND avoid a car loan.

Coded as a Purchase and yes I did get pts that I paid towards the purcahse ($650) not the best card for pts but its something.

I did make 1 mistake as the plan was to do a BT to US bank for $21k to avoid interest on my B of A, didnt realize US bank had a 75% cap limit on the BT, so I ended paying interest on the balances that rolled with the B of A as I paid them down...I would have done this on 2 to 3 BT cards, but at the time only US bank was offering me a BT offer. My other 6 cards dried up