Financing questions, and my final post in this sub-forum…

[Silver23]

If you get a pre approval from a credit union or other financing source you can ask your dealer if they’ve worked with them before. If they have it’s super easy- just give the dealership your down and they will handle the rest with your other bank. One benefit with my credit union Kinecta is they offer a 1/2 percent discount off the advertised rates for auto pay.
I was considering paying cash for the Mav because of the high interest rates, but I did the math and as it turns out I actually make a little more $ in interest by keeping it in a high yield savings account (over the 60 mo term, due to compound interest) and that money is available for emergencies if I need it. Just something else to think about.

please share the bank you mentioned about high yield savings.

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[Johnkn]

please share the bank you mentioned about high yield savings.

It certainly isn’t the Credit Union Kinecta he mentioned, their rates for all products across the board are terrible. LOL. Also, they don’t fully disclose the loan rates on the front page (“start at 5.94% with terms up to 84 months”), they require you to apply then the actual rates are “subject to underwriting factors” , “are subject to change” and “include the additional .25% reduction for auto payment”, LOL
The Navy FCUs new car rates are 1.5% less for loans up to 36 months as an example.

I moved some $$ to a Flourish savings account this week, 5% and no penalty for withdrawal. You generally need to be invited to join them via a Financial Advisor. I’m a member of (3) Credit Unions and also moved $ yesterday to CDs at the NASA Fcu. 5.4% for 9 months, and 5.27% for 15 months.


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[jamie722]

please share the bank you mentioned about high yield savings.

I did my financing through Kinecta 5.69% 59 mo including the direct draft payment discount. I did see that navy credit union had better rates but you need to be connected to military to get that. I just saw arrowhead credit union advertising 4.49% auto loan. What also bums me out is that Ive seen lots of promotional rates through Toyota and Honda over the past couple months on certain vehicles at 1.9%. If rates get way better you can always refinance auto loans.

I’m currently with betterment for high yield savings. The rates are variable, since I’ve been with them I’ve had between 4.75 -5.75. They usually have a promotional rate when you first sign up and referral rates. Last I checked the referral rate was .25 better than the sign up promotion so if you want a referral let me know! They also give the person referring either .75 or bump on current rate or 5.75 for 3 extra months. To check my math I always use Omnicalculator.com -put in for $20,000 (for example) at 6% interest in auto loan calculator for 5 years - total interest = 3199. Then went to APY calculator and put in 20,000 5% APY for 5 years and make $5,680 for keeping money in the bank. Originally I thought about paying cash because the interest was so high (plus my sales tax is 10.25% so it was already a lot more in extras) but I would have to pull the money out of savings. After the calculations I decided to keep my money in the bank and do the financing- that way I (hopefully) won’t have to dip into savings for the monthly payments. And also the benefit of a hys is that you can take out and put in money at any time with no penalty. TMI?! I hope it helps!

 

[Silver23]

I did my financing through Kinecta 5.69% 59 mo including the direct draft payment discount. I did see that navy credit union had better rates but you need to be connected to military to get that. I just saw arrowhead credit union advertising 4.49% auto loan. What also bums me out is that Ive seen lots of promotional rates through Toyota and Honda over the past couple months on certain vehicles at 1.9%. If rates get way better you can always refinance auto loans.

I’m currently with betterment for high yield savings. The rates are variable, since I’ve been with them I’ve had between 4.75 -5.75. They usually have a promotional rate when you first sign up and referral rates. Last I checked the referral rate was .25 better than the sign up promotion so if you want a referral let me know! They also give the person referring either .75 or bump on current rate or 5.75 for 3 extra months. To check my math I always use Omnicalculator.com -put in for $20,000 (for example) at 6% interest in auto loan calculator for 5 years - total interest = 3199. Then went to APY calculator and put in 20,000 5% APY for 5 years and make $5,680 for keeping money in the bank. Originally I thought about paying cash because the interest was so high (plus my sales tax is 10.25% so it was already a lot more in extras) but I would have to pull the money out of savings. After the calculations I decided to keep my money in the bank and do the financing- that way I (hopefully) won’t have to dip into savings for the monthly payments. And also the benefit of a hys is that you can take out and put in money at any time with no penalty. TMI?! I hope it helps!

thanks, I'll check into Betterment
The best I've seen is 5% APY for a savings.
I thought you might have a better source for savings is why I asked,
Edit: I look at their site and it's 5%, same as I'm getting now.
thanks

 

[Johnkn]

I did my financing through Kinecta 5.69% 59 mo including the direct draft payment discount. I did see that navy credit union had better rates but you need to be connected to military to get that. I just saw arrowhead credit union advertising 4.49% auto loan. What also bums me out is that Ive seen lots of promotional rates through Toyota and Honda over the past couple months on certain vehicles at 1.9%. If rates get way better you can always refinance auto loans.

I’m currently with betterment for high yield savings. The rates are variable, since I’ve been with them I’ve had between 4.75 -5.75. They usually have a promotional rate when you first sign up and referral rates. Last I checked the referral rate was .25 better than the sign up promotion so if you want a referral let me know! They also give the person referring either .75 or bump on current rate or 5.75 for 3 extra months. To check my math I always use Omnicalculator.com -put in for $20,000 (for example) at 6% interest in auto loan calculator for 5 years - total interest = 3199. Then went to APY calculator and put in 20,000 5% APY for 5 years and make $5,680 for keeping money in the bank. Originally I thought about paying cash because the interest was so high (plus my sales tax is 10.25% so it was already a lot more in extras) but I would have to pull the money out of savings. After the calculations I decided to keep my money in the bank and do the financing- that way I (hopefully) won’t have to dip into savings for the monthly payments. And also the benefit of a hys is that you can take out and put in money at any time with no penalty. TMI?! I hope it helps!

You were asked about your “high yield savings”. You responded that you received 5.69 financing. You stated you were receiving 4.75-5.75 on your saving and it was variable, (LOL). Then a bunch of nonsensical crap. Variable means just that. It can go to 12% in November in this climate.

Before you attempt to blow smoke up people’s asses with your financial advice it would behoove you to know who some of the audience is here..

Good luck...

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[Silver23]

You were asked about your “high yield savings”. You responded that you received 5.69 financing. You stated you were receiving 4.75-5.75 on your saving and it was variable, (LOL). Then a bunch of nonsensical crap.

Before you attempt to blow smoke up people’s asses with your financial advice it would behoove you to know who some of the audience is here..

Good luck...

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ya, I thought it was too good to be true.
I didn't notice the variable stuff.
I was just hoping for a 6% savings!
oh well

 

[Johnkn]

ya, I thought it was too good to be true.
I didn't notice the variable stuff.
I was just hoping for a 6% savings!
oh well

6 is a stretch for insured savings right now whether FDIC or NCUA. Grab mid 5s if you can, it will pay off when you are as old as me. Remember that locking in an interest rate for a specified time doesn't mean you can’t accelerate the payments , pay it off early, and effectively reduce the effective interest rate and finance fees.

Best of luck...

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[jamie722]

thanks, I'll check into Betterment
The best I've seen is 5% APY for a savings.
I thought you might have a better source for savings is why I asked,
Edit: I look at their site and it's 5%, same as I'm getting now.
thanks

You were asked about your “high yield savings”. You responded that you received 5.69 financing. You stated you were receiving 4.75-5.75 on your saving and it was variable, (LOL). Then a bunch of nonsensical crap. Variable means just that. It can go to 12% in November in this climate.

Before you attempt to blow smoke up people’s asses with your financial advice it would behoove you to know who some of the audience is here..

Good luck...

.

I’m pretty sure all hys accounts are variable. Your money or rate isnt locked in like a CD. The point of all the nonsensical crap (aka math) is that apy earning 5% (which it sounds like most people are getting right now) makes more money over 5 years than paying 6% interest on an auto loan. Even if the apy drops to 3% it will be close to a wash. So for me, I went with financing vs cash because I’ll end up making more money by keeping it in the bank and never have to dip into savings to pay my monthly payment. I literally showed the math and how to play with the numbers for anyone who might want to see for themselves.

Multiple questions were asked about financing and hys and I just put it in one reply…. Sorry that seemed to upset you! This is not financial advise- talking about apy, apr and what I did, sharing online calculators. It would be great if my HYS went to 12% this November, or I could move the money if the rate drops. My auto financing loan rate is locked in, but I can refinance. Wow… why and how would you expect me to know who I’m talking to before I dare show the math on apy vs apr?

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