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Discussion Starter · #1 ·
Beside Woodside are there any banks or financial institutions that provide a 96 mont loan for $200k+
 

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A 96 month loan means that 8 years from now you still have a car payment. To put it in perspective to be, you would still be making loans on your 2012 12C. It’s your money and your finances but I personally would strongly reconsider.
 

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A 96 month loan means that 8 years from now you still have a car payment. To put it in perspective to be, you would still be making loans on your 2012 12C. It’s your money and your finances but I personally would strongly reconsider.

Nothing wrong with financing a long term loan if you plan to pay it off early. It just makes sense for some people.

I will be the example. My work is contract based so 6-10 months a year I make ~85% of my yearly income and vacation the other 2-6 months. When I finance I request the longest term possible so that my vacation time is less spent on monthly expense concerns and more on relaxing and enjoying family/hobbies. Since my time at work and home is not the same yearly I just make large payments while I work and minimum payments while I am home. This actually worked out for me in 2020 as I was only able to work 4 months out of the entire year (thanks Covid).
 

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Beside Woodside are there any banks or financial institutions that provide a 96 mont loan for $200k+
A home equity line of credit may be the cheapest, and flexible, option. However, i wouldn't recommend buying a rapidly depreciating asset with debt.
 

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Financing to leverage cheap credit- nothing wrong with it. Money is cheap. I say take advantage of it. However financing something like a mclaren that is going to lose value- guaranteed- I personally would not do it. If payments get extended for 8 years, op will be making payments on a car worth about 125k.
 

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Woodside or a credit union,

With Woodside you will have to put a lot of money down and they have 2/2 program, which means that if you pay off within 2 years you will be penalized, after 2 years you pay it off there will be no penalty.
 

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Wow, lots of topics on debt .....always a argument on cheap money ............carrying debt on cars/toys for me personally is just away to justify the expense. I know guys with car payments more than their mortgage, and I just shake my head. If I can’t cut a check for it no buy for me. I had a sh&T load of debt in my 20’s made a promise to myself if I can pay and be done with it.
 

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Beside Woodside are there any banks or financial institutions that provide a 96 mont loan for $200k+
Dealers are the ones who can give you the best options.

The long term financing (96, 120 , 144 months), has opened up exotic car buying for many, many people.

Manufacturers and especially resellers/brokers wouldn't be able to move as much inventory as they do, if it wasn't for these types of financing terms.
 

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Discussion Starter · #9 ·
Woodside or a credit union,

With Woodside you will have to put a lot of money down and they have 2/2 program, which means that if you pay off within 2 years you will be penalized, after 2 years you pay it off there will be no penalty.
I spoke with Woodside and they stated no pre-paid penalty but I did not ask if within 2 years. I will follow up with Woodside. Thank you for the information !!
 

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Wow, lots of topics on debt .....always a argument on cheap money ............carrying debt on cars/toys for me personally is just away to justify the expense. I know guys with car payments more than their mortgage, and I just shake my head. If I can’t cut a check for it no buy for me. I had a sh&T load of debt in my 20’s made a promise to myself if I can pay and be done with it.
It really depends on the interest rate. Let's say you can afford a $100K car outright but you'd rather take advantage of low interest rates and finance it for 7 years at 5% APR. You paid $118K through those 7 years. However, since you did have $100K sitting in your bank account and decided to invest them into the S&P 500 7 years prior you nearly doubled your money by then. There is some risk involved in both situations but I'd rather take the loan on the toy and invest the cash if the interest is good enough. That being said, there's a lot that has to do with mentality and actually sticking to that plan, plus some people prefer peace of mind and pride of ownership instead of making that extra money.
 

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It really depends on the interest rate. Let's say you can afford a $100K car outright but you'd rather take advantage of low interest rates and finance it for 7 years at 5% APR. You paid $118K through those 7 years. However, since you did have $100K sitting in your bank account and decided to invest them into the S&P 500 7 years prior you nearly doubled your money by then. There is some risk involved in both situations but I'd rather take the loan on the toy and invest the cash if the interest is good enough. That being said, there's a lot that has to do with mentality and actually sticking to that plan, plus some people prefer peace of mind and pride of ownership instead of making that extra money.
No wrong or right answer here, but my view cars are toys at this price point. You have investments and toys I just prefer not to mix the two.
 

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Discussion Starter · #12 ·
I spoke with Woodside and they stated no pre-paid penalty but I did not ask if within 2 years. I will follow up with Woodside. Thank you for the information !!
I confirmed with woodside and there are no pre-paid penalties or fees for paying off the loan....
 

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Discussion Starter · #13 ·
Thank you everyone for sharing your views and thoughts. My plan is to target a reasonable loan I can afford and then pay off the loan completely in 4 years. Provides me the best option....
 

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Thank you everyone for sharing your views and thoughts. My plan is to target a reasonable loan I can afford and then pay off the loan completely in 4 years. Provides me the best option....
The interest rate with woodside is not a reasonable loan. They are usually 3x higher.
s
 

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Discussion Starter · #15 ·
The interest rate with woodside is not a reasonable loan. They are usually 3x higher.
s
current rate for a loan of $100K+ is 4.95% with Chase with a max of 84 months, Woodside is 6.5% with a max of 144 months.... I do plan to pay off the loan in 4 years but a 96 month loan give me more flexibility...
 

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current rate for a loan of $100K+ is 4.95% with Chase with a max of 84 months, Woodside is 6.5% with a max of 144 months.... I do plan to pay off the loan in 4 years but a 96 month loan give me more flexibility...
Only you know your financial situation but if you take a 200k loan at the market rate of 2.59 for a 60 month loan after 4 years the balance left on the loan is $42,096 and you have paid $12,853 in interest (your payments are $3557). With a woodside loan with the same 200k and a rate of 6.5 for 144 months your balance at the end of 4 years the balance is $149,649 and you have paid $45,876 in interest (Your payments would be $2003).
 

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Everyone always justifies taking on a lot of debt because interest rates are low / financing is cheap but then avoids the discussion around the opportunity cost of borrowing the same amount to invest and returning a very achievable 6-7% a year compounded vs a $200k car losing 10% a year on average, certainly more in the first few years. Not advising the OP one way or the other but just trying to point out the confirmation bias that often afflicts these debates.
 

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Woodside or a credit union,

With Woodside you will have to put a lot of money down and they have 2/2 program, which means that if you pay off within 2 years you will be penalized, after 2 years you pay it off there will be no penalty.
wrong, woodside doesn't have that penalty anymore, i just did my financing through them, no early payoff penalty

also, i think many of you are missing the point of the 96 or 144 month term, vast majority, like me, don't keep these cars for more than a year or two, this financing option allows you to get into a car with lower monthly payments ( yes 20% down needed), and after a year or so can trade it for something else, the notion that you're going to pay this off in 12 years is unrealistic and silly, woodside knows this, no mystery here, it's not a mortgage
 

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wrong, woodside doesn't have that penalty anymore, i just did my financing through them, no early payoff penalty

also, i think many of you are missing the point of the 96 or 144 month term, vast majority, like me, don't keep these cars for more than a year or two, this financing option allows you to get into a car with lower monthly payments ( yes 20% down needed), and after a year or so can trade it for something else, the notion that you're going to pay this off in 12 years is unrealistic and silly, woodside knows this, no mystery here, it's not a mortgage
I also use Woodside and you are 100% correct, if you take the mentality that it is a lease and forget the term of the loan that is the trick with Woodside. Buy a used exotic that already took its depreciation hit, then finance with Woodside, keep the car 2 years or so. You will have very little depreciation and your cost of ownership will only be that payment which is significantly less than trying to lease a new exotic.
 

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I also use Woodside and you are 100% correct, if you take the mentality that it is a lease and forget the term of the loan that is the trick with Woodside. Buy a used exotic that already took its depreciation hit, then finance with Woodside, keep the car 2 years or so. You will have very little depreciation and your cost of ownership will only be that payment which is significantly less than trying to lease a new exotic.
You should give an example of how this works with numbers. (your own and how many cars you have gone in and out).

Eventually, you'll have to pay the piper..
 
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