I'm trying to decide which route I should go. I'm thinking of buying a Yamaha YXZ1000R. Having another early midlife crisis. Lol
Here's the dilemma, I have a friend that can get me a great deal on one. The problem is I'd have to buy it outright. I can't finance it because of the stipulations that it must remain in his name for a year. He'll be signing the title over to me the day I buy it. It will be post dated one year out. I've considered going thru one of my CU's and do a secured share loan. The rate would be around 2.01% with the option to pay the loan up to 120 or 154 months. Of course I wouldn't pay on it that long. I do plan to pay off my auto loan next year and need something to replace that installment loan. Any other options I haven't thought of that would allow me to cut a cashier's check to purchase the item with a low rate? Basically I'll be borrowing from myself. I'm just trying to make sure I haven't missed anything.
You can't finance items like this the traditional way unless it's in your name from what I've been told.
HELOC / HEL if you have equity in a house somewhere would be the other low interest manner of financing. Otherewise you're looking at 10% or more potentially would be my guess on an unsecured loan for your new toy.
That said if you can pay cash, you can always just sort the installment line (and probably smarter to do it this way) with a $500 secured loan from Alliant and then just pay it down for early goodness (but not off).
@Revelate wrote:HELOC / HEL if you have equity in a house somewhere would be the other low interest manner of financing. Otherewise you're looking at 10% or more potentially would be my guess on an unsecured loan for your new toy.
That said if you can pay cash, you can always just sort the installment line (and probably smarter to do it this way) with a $500 secured loan from Alliant and then just pay it down for early goodness (but not off).
Thanks Revelate, does Alliant do a hard pull to be a member or for a secured share loan? They pull Equifax correct?
Edit: I just checked Alliant's rates, they are 2% higher than Penfed or Xcel FCU. I'll just go with one of them on the shared secured loan.
Thanks for the insight takeshi. Its just one if those things I figured I might as well build some more credit history if I planned to spend the money anyway. I may take the loan in full then pay half off immediately to see if it makes any real difference in scoring.
@Gmood1 wrote:
@Revelate wrote:HELOC / HEL if you have equity in a house somewhere would be the other low interest manner of financing. Otherewise you're looking at 10% or more potentially would be my guess on an unsecured loan for your new toy.
That said if you can pay cash, you can always just sort the installment line (and probably smarter to do it this way) with a $500 secured loan from Alliant and then just pay it down for early goodness (but not off).
Thanks Revelate, does Alliant do a hard pull to be a member or for a secured share loan? They pull Equifax correct?
Edit: I just checked Alliant's rates, they are 2% higher than Penfed or Xcel FCU. I'll just go with one of them on the shared secured loan.
I wasn't aware Penfed even did secured loans? Do you have a link to it? Did see Alliant raised their rates to 4% on the 5 year note which I think is 3% difference from the base deposit.
Yeah Alliant is just SP, Equifax, both membership and share secured loan.
Major feature you're looking for is the ability to pre-pay a large chunk and have the loan change your future due date. That way one can leave the tradeline sitting out there (with a once every six months or so to abate any inactivity fee issues if the lender assesses those which Alliant does do as an example) and take the FICO goodness on an extended period. Probably a bunch of people have Penfed loans should be able to find if they do that or not.
I emailed them Revelate . The CSR told me it was 2.00% above dividen rate. They'll do the loan for up to 142 months but not less than $25 a month.
@Gmood1 wrote:
I emailed them Revelate . The CSR told me it was 2.00% above dividen rate. They'll do the loan for up to 142 months but not less than $25 a month.
Interesting, good to know! That pencils out at what, $3200 roughly for a deposit given their current regular share dividend rate is 0.05%?
Yeah I'd take the longer term too, and at least from what I read on some other product, Penfed will move the date out if you pay in advance if you don't go out of your way to specify it as a principle only payment which is what we're looking for.
That 2% rate over is pretty standard, 4 year Alliant loan or a CD-secured loan through USAA both have that. Other interesting thing would be how Penfed secures the loan, if it releases funds after payment then it might become a really good option.
