Financing

blue_bomber697

blue_bomber697

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Hey guys, what kind of rates are you getting for those of you that are financing? The dealership can't seem to get my lower than 4.99% which is a bit higher than I'd like. My bank can't do any better giving me 5.15%. I haven't shopped around at other institutions yet and I have a few months before I need to lock anything in, but I'm curious to see what some of you guys are getting in comparison.
 
Anytime a bank "can't do any better" let them know there are lots of banks around. I can get all the money I want at prime and I've had guys tell me their at prime less .5%
 
Do you have a personal line of credit ??

Most banks offer this, usually 3% plus ~ 1/2%. Certainly no more than 4%.

Depending how much they want your business, they will often not charge for the
processing fee or house evaluation. [ often ~ $600 + ]
Just a thought.
Tony
welland
 
tony said:
Do you have a personal line of credit ??

Most banks offer this, usually 3% plus ~ 1/2%. Certainly no more than 4%.

Depending how much they want your business, they will often not charge for the
processing fee or house evaluation. [ often ~ $600 + ]
Just a thought.
Tony
welland
Click to expand...

I don't. That was my intention was to use this, but I am only 23 and just bought my house last summer. And the bank told me I didn't have enough of my house paid off to get a line of credit. I've only paid a mortgage for 6 months so I haven't paid too much off. It sounded like I had to pay off about 20% of the mortgage before I would be eligible. (Or something like that, meeting was months ago)

RBC figured the best was to go about it was the standard loan which was giving me high interest so I wasn't a fan. I have amazing credit, its just buying a house so recently apparently dropped me out of the top bracket. Not sure how long it takes to get it back up.
 
I've found that banks fall all over themselves to loan you money once you don't need it. They're also like the guy who loans you an umbrella then wants it back when the rain comes. Don't let them get their claws into you too deep.
 
At 23 years old, your best bet is to take every cent you make and throw it down on bulk payments on your mortgage. There is no interest on bulk payments, it goes directly to the Principle.

Do yourself a favor and get your mortgage under control before you start looking at Toy's.

Ya, it is cool to have a Vette, but it is way cooler to outright own your house, then look at the toy's.

Interest rates are low right NOW.... but a few years ago they were up around 18%...... That nice new Vette at $65,000 over a 5 year term would cost about $12000 a year for 5 years, so basically double....

Go find an older Corvette for a few thousand , enjoy working on it. And once your House is paid off then knock yourself out.

Just My opinion, but Your Home is by far more important than the car you drive.
 
I echo Bearly Flying. I was serious about my debt reduction, paid off my house, farm everything (40). Survived cancer (42), a brutal divorce and settlement (43) and am better off now, still debt free and paid cash for my Z06 (47).

No doubt toys are nice but get yourself out of your mortgage first.

And GET A MARRIAGE CONTRACT! Pay the lawyer a little now to write it up properly or possibly a lot more later on.............in Alberta you can write your own contract up but it STILL has be to be reviewed by lawyers (my mistake in not knowing this).

Been there, done that, as they say.

Plus C6's and C7's will be more affordably priced down the road.

Cheers,

Garry
 
I also echo Bearly Flying: Paying down the mortgage should be the first and most important thing to be looking at right now. And if kids happen into your live, you will be glad to have your debt under control. This is why most of us here at this forum are old farts. And the reason we are able to own a car like this.
Nothing wrong with owning an older less expensive ride for a while.
Just my nickel's worth.
 
I can also add that when I was in my mid-20's I had a Datsun diesel pickup that I drove for a year that didn't even have 5th gear in the tranny! I never went anywhere so driving at 80 km/hr was never a problem.

My sports car experience when I was I think 26 maybe was a NA 1982 Datsun 280ZX that I actually drove and loved up until I got the Z06.

CB hits the mail right on the head as I think my experience does. Lots of time to own and enjoy toys. You need to be preparing yourself now properly for your future life, children, spouse and yes those unforseen emergencies.

I can't tell you how the vehicle lots in Grande Prairie filled up to overflowing in 2008 when the Alberta economy imploded and all those 20 year old guys who financed everything including their 80K quad cab diesel 4x4 trucks who were maxed out on monthly payments and who subsequently lost everything and how many "old fart" farmers bought these trucks off the lots for 33 cents tot he dollar owed...........

As my father always told me, "always save for a rainy day, you'll have too many rainy days in your life" and while dad maybe wrong about a few things he was right on the "money" about this.

House payments/real estate payments for sure. Car payments - never!

Cheers,

Garry
 
interest is evil, i collect it, i don't pay it. but if you have to, go with the largest downstroke you can manage to keep the monthly payments lower. then you will have more equity in case things go south and you need to liquidate. by the time i was 23 i had racked up so much debt that i had to get my friggin' smokes on credit from the coffee truck guy !!! i think what all us geezers are trying to say is be careful not to get into a bind by being debt trapped. :canada:
 
Somebuddy said:
I've paid my share of interest when I was younger.....of course interest rates were 10% or more.......now I wish the rates would skyrocket!!
Click to expand...

I'm with you on that one Somebuddy.... Remember in the early 80's when the rates hit up in the 20% range. Now I know why the old farts at the time were so happy about it. All I remember was almost loosing my house,
 
Back in the 80's, I once had a car loan at 21% and my first home mortgage at 14-1/4% after I shopped hard for the best rates I could get. Funny how when I needed money, I paid huge rates and when I have money to invest, I can hardly receive anything.
 
There were many mortgages and loans at well over 20% back then and the financial institutions renegotiated many of them when rates fell.

Good to have cash back then for sure.

C.
 
Thanks for the advice guys. I hear what you're saying about paying off the mortgage first, but I literally just started paying the thing lol. I'm not patient enough to be waiting 15-20 years to enjoy myself. I always hear older people saying they wish they enjoyed their youth more. This is me enjoying my youth. Plus kids are still a minimum of 6 years away for me so I'm not too concerned about that. Obviously yes it is smarter to have no debt, but I won't be making the kind of money I am now forever and so I am going to enjoy it while I can.

As for all those higher interest rates you guys used to have, damn. That must've sucked. I think of anything over 6% as highway robbery haha.
 
CB I remember the 80's well (well some of them) probably some of my highest debt years and for sure highest interest rates. I keep hoping things will turn around...........IT'S TIME FOR PAYBACK.....
 
Hey guys, maybe remembering those high interest rates is the best thing for many. I recall my parents paying the 22% interest on their mortgage and many sleepless nights as they spoke about how to make ends meet. Dad working two full time jobs and mom also working full time and still put us through school. I have never forgotten what they have gone through and I have a faithful rule of paying down as much as possible in the first 5 years of buying any property and only buying toys if you can pay in cash.

I never thought I would be preaching like this but all good things come in time.
 
I hear what you're saying about paying off the mortgage first, but I literally just started paying the thing lol. I'm not patient enough to be waiting 15-20 years to enjoy myself
Click to expand...

You missed my point..... Pay bulk payments on your mortgage. Most mortgages have a 10% or 20% bulk payment option on the anniversary of the mortgage. That payment goes directly to the Principal debt, NO interest is taken off....The sooner you start doing that the faster the interest drops that comes off each monthly payment.

In the early years of a mortgage, almost all of the monthly payment is interest. As you progress through the years the interest declines and the amount going to pay off the debt increases.

By hitting it with Bulk payments you will substantially reduce the amount of interest paid over the life of the mortgage and increase your equity in the property. The sooner you start, the bigger benefit you get.

I'm not saying not to enjoy life, but you will notice a lot of Us older farts aren't driving brand new Vette's. That brand new Vette worth $65,000 is only worth $50,000 the moment you drive it off the Dealers lot. And if the economy goes to hell, You would have a hard time selling it for $30,000.

I see you are up in Fort Mac, everything is rosy, RIGHT NOW. I have been in the Patch for 45 years and can tell you how quickly things can change. One announcement and the Party is over, and it takes probably a good 3 years to come back. It doesn't matter if you work in the Industry or not, the snowball effect hits everybody.
 

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