| pej7445 |
I missed out on the 0.9-2.9% finance offer Acura had in June on the MDX.
Does anyone know if it will be coming back? |
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| MDX05FAN |
| I would like to know this as well, but my guess is no one probably knows, but they may do something similar for the 05's once the 06's roll out which will be at least middle of Sept. at the earliest, so my dealership says. |
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| dahacker |
quote:
Originally posted by pej7445
I missed out on the 0.9-2.9% finance offer Acura had in June on the MDX.
Does anyone know if it will be coming back?
With readily available low auto loan rates in the open market, I don't see why anyone would wait for this measly interest rate offer.
My credit union has 4.1% Almost everyone these days can join a credit union.
Capital One has 4.9%
Here are the monthly payments on $40,000 for 5 years:
2.9% - $717
4.1% - $738
4.9% - $753
Are these small differences in monthly payment really an issue when you should be paying off your loan faster than 5 years anyway? |
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| MDX05FAN |
| From 2.9% to 4.9% is near $2,000 savings over 5 years. I think if I had to wait a month or 2 before I got the MDX at a smaller interest rate and save 2k over the life of the loan I would. |
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| dahacker |
The credit union delta is more like $1200.00 if you held the loan for the entire 5 years.
I would argue that if you can't pay off the 5 year loan in 2-3 years, then you shouldn't be buying a $40,000 vehicle. I like the 5 year loan though because it gives you fiscal flexibility vs. a 2 or 3 year loan.
Anyway. In two months, you might be looking at slim pickings on the 2005 that you really want or price increases on the 2006. Plus that 2005 is already depreciating in value every month even before you buy it. That would make the pipe dream of saving maybe $1200 a complete loss.
quote:
Originally posted by MDX05FAN
From 2.9% to 4.9% is near $2,000 savings over 5 years. I think if I had to wait a month or 2 before I got the MDX at a smaller interest rate and save 2k over the life of the loan I would.
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| G. COLTON |
quote:
Originally posted by dahacker
The credit union delta is more like $1200.00 if you held the loan for the entire 5 years.
I would argue that if you can't pay off the 5 year loan in 2-3 years, then you shouldn't be buying a $40,000 vehicle. I like the 5 year loan though because it gives you fiscal flexibility vs. a 2 or 3 year loan.
Anyway. In two months, you might be looking at slim pickings on the 2005 that you really want or price increases on the 2006. Plus that 2005 is already depreciating in value every month even before you buy it. That would make the pipe dream of saving maybe $1200 a complete loss.
What on earth does the time period have to do with the interest rate? The really smart person pays it off in zero years. However, if that is not practicable then the smart person gets the lowest interest rate obtainable and pays it off in the shortest time allowed by his/her budger. Whether or not a five year or three schedule is used has nothing to contribute to the subject.
G |
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| nightguy |
quote:
Originally posted by G. COLTON
What on earth does the time period have to do with the interest rate? The really smart person pays it off in zero years. However, if that is not practicable then the smart person gets the lowest interest rate obtainable and pays it off in the shortest time allowed by his/her budger. Whether or not a five year or three schedule is used has nothing to contribute to the subject.
G
So if you finance a car you couldn't be really smart ? :confused: I'm glad you broke this down for the layman. I was under the impression one should take as long as possible to pay down debt. :cool: |
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| G. COLTON |
quote:
Originally posted by nightguy
So if you finance a car you couldn't be really smart ? :confused: I'm glad you broke this down for the layman. I was under the impression one should take as long as possible to pay down debt. :cool:
Take as long as you like, only if you like giving away your hard earned money to somebody else.
G |
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| nightguy |
quote:
Originally posted by G. COLTON
Take as long as you like, only if you like giving away your hard earned money to somebody else.
G
What if you have the opportunity to buy an investment property that will return an easy 12% in 3 years ? You then finance the MDX purchase for 3 years at 2.9%. Who's smart then ? |
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| MDX05FAN |
quote:
Originally posted by nightguy
What if you have the opportunity to buy an investment property that will return an easy 12% in 3 years ? You then finance the MDX purchase for 3 years at 2.9%. Who's smart then ?
I was just going to post something like this :2:
I am involved with a Forex Trading company where we easily average 60% a year, so having your money tied up into investments that are earning you more than your car loan is the way to go !
From the posts I have read above it looks like a couple people are not thinking outside of the box:confused: |
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| G. COLTON |
quote:
Originally posted by nightguy
What if you have the opportunity to buy an investment property that will return an easy 12% in 3 years ? You then finance the MDX purchase for 3 years at 2.9%. Who's smart then ?
There is a very big difference between an investment property and finance charges for a property that depreciates. If you cannot tell the difference then you should stay away from investments.
If there is a choice between buying a good investment property and the MDX then buy the property. If you do not have the money to do both then maybe the MDX should wait.
However, if you can get more for your money somewhere else then financing the MDX at a LOW rate is probably good. As a matter of fact I financed my last vehicle because I got a finance rate that was lower than what my free capital was earning.
G
G |
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| SuitedPair |
| Please disregard this post. Very little of it was accurate. |
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| G. COLTON |
[QUOTE][i]So each time you make a payment, your effective interest rate for the remainder of the loan gets lower and lower. This makes using the original interest rate to determine the value of paying off the loan overstate the true benefit.'
Not true. Go check your econ 101.
"And by the way, investing in a property that will return 12% in 3 years doesn't look so hot considering you can get the same exact three-year return investing in federally guaranteed US treasury n"
Quite true. It would be a poor investment even in today's low interest rates.
G |
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| nightguy |
| Good golly. It was an example. I was being conservative. The point is that it's not necessarily bad to have debt. :rolleyes: |
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