Urgent! Which financing option?

[goRH]

Hello everyone!

I'm currently in the process of buying a used car from carmax and I have to choose between these two options for financing.

For a car with final price of a little less than $89,000 (tax,title,etc included..),

1. Carmax Financial offered me 1.9% for 60months with $36,000 down.

2. Penfed offered me 3.24% for 60months with $20,000 down.

If I were to keep the car for about 3-4 years and I can safely make 8~10% per year with the extra cash I have, which is a better option for me?

Thank you so much in advance!

[bbora]

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@goRH wrote:

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@CH-7-Mission-Accomplished wrote:

Is this a serious queston?  If so, how on earth can you afford an 89K car?

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Well.. then are you saying that it is ok and a right thing for Warren Buffett to wipe his nose with a $100 bill?

The fact that I am financially prepared for 89k car does not mean that I can choose a financing option that could throw away couple thousand dollars compared to the other option.

I would greatly appreciate it if you can please be on topic.

Thanks. 

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I strongly agree with OP. I know a rich guy who has 5 exotic cars but is pickiest whenever he buys a new car.. He always makes sure that he gets the best rate and the most discount off of MSRP available.

As for the question of OP, I think you would be better off choosing PenFed option (w/ lower down) and refinance your loan with a bank that gives you a lower rate later on.