2.49% APR for 84 Months - Payment Deferred for 3 Months!

[XxRaVeNxX]

Through CarolinaCU, anyone can join. Some may not agree with the lengthy terms, but at that low of an APR just pay more on your monthly bill if you can afford it. 

[Superduper2014]

@XxRaVeNxX 

Hi, what credit bureau did they use ?

Are they requiring proof of income for the loan?

My gf had a 730 fico and her rate for 72 months is 4.74%, what was your score if you don't mind?

Thanks

[XxRaVeNxX]

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@Superduper2014 wrote:

@XxRaVeNxX 

Hi, what credit bureau did they use ?

Are they requiring proof of income for the loan?

My gf had a 730 fico and her rate for 72 months is 4.74%, what was your score if you don't mind?

Thanks

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Seems they pulled Transunion. They require a paystub.

I'm pretty sure my FICO score is similar to hers give or take 10 points based on inquiries or how I use my credit card.  

Only bad thing is that you can't apply for membership to the credit union online - they make you do a paper application in the mail. 

[Harvey26]

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@XxRaVeNxX wrote:

Through CarolinaCU, anyone can join. Some may not agree with the lengthy terms, but at that low of an APR just pay more on your monthly bill if you can afford it. 

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Would you mind sending me the link to their website.

[XxRaVeNxX]

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@Harvey26 wrote:

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@XxRaVeNxX wrote:

Through CarolinaCU, anyone can join. Some may not agree with the lengthy terms, but at that low of an APR just pay more on your monthly bill if you can afford it. 

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Would you mind sending me the link to their website.

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https://www.carolinacoopcu.com/loan-rates

[Loquat]

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@XxRaVeNxX wrote:

Through CarolinaCU, anyone can join. Some may not agree with the lengthy terms, but at that low of an APR just pay more on your monthly bill if you can afford it. 

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@XxRaVeNxX There's nothing wrong with that.  I used to be a Finance Manager in my previous career and I too would take as long of an option available to me IF the interest rate was 0%...or in your case 2.49%.  Any time I can borrow someone elses money for little to nothing I'm going to do it and take the longest option available to me even if I don't need it.  

Best cause scenario my profile looks a little better if I pay it off early...worst case if cost little to nothing to let it run to term.  Either way, win-win.

[Superduper2014]

@Loquat 

May I pick your brain a bit please?

So if my GF got a 4.47% Apr for a 72 term for up to 18k (lower than 60months and the rate is a bit lower, they up the rate for longer than 61 months)

Let's say the car will cost 18k. 

Is it better to put a large down payment up front to reduce the cost of the monthly payments and interest calculation or is it better, in this economy that is uncertain, to hold on to your cash and when you have the extra money add to principal to pay it off sooner?

If you add to principal, your monthly pymt still remains the same until you pay it off completely or refinance, but what if your scores get messeda up and you can't refinance later on? 

But on the other hand, if you give a large down payment of cash, then you may need that cash for an emergency, especially during these trying times (for some these are trying times). 

Also, she could buy a cheaper car of course, but even if the car was 15k or 10k the above questions could still be asked. 

Any word of advise here? Suggestions? 

Thanks a lot, again. 

[Loquat]

@Superduper2014 In this economic uncertainty I would say hold on to the cash and just add it to the monthly payment as you wish to reduce the principle.  The reason I say that is because unless putting more money down now will significantly drop your rate, there's not much to gain here.  

You can always attempt to refinance down the road but if you put all of your savings down today and something comes up where you could have used that money (while still making your monthly payment) for something more pressing you'll regret it. 

During such uncertainty now I can't advoate for anyone to massively spend cash until they have a healthy financial balance.

[Superduper2014]

Yes. Words of reason. I agree with you. Thank you @Loquat 

Hopefully, very soon, she will be in a position to refinance once she has made additional payments to principal and lower her monthly fixed payment. Have a great rest of the day!

[XxRaVeNxX]

Just follow up in case there are any lurkers

Went through the leg work to do the physical work of getting a membership applying for a loan through Carolina Cooperative Credit Union.
​​​​​​​
Unfortunately, they seem pretty hesitant to give loans for private sales, which is what I was looking for. Approved for 2.49 for  84 months, but denied unless it was through Tesla or a dealership.

Didn't learn till after I had a membership and pulled my credit for a loan, that their limit for a private sale loan is 30K, which is almost zero Teslas worth buying. She had to ask her boss to see if they would override. Seems they would, but then they was also nervous the seller was in the a different state(for transfer title purposes) - and them "being a small credit union" and being "burned by other private sale transactions" - they ended up saying no.

Then after all that - landed on Delta Community Credit Union with 2.38 for 72 months. I worked for Aaron's Rents briefly close to 12 years ago and that is how I was able to join...