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      01-17-2019, 06:44 PM   #31
slcook54
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Drives: 2012 MR M3 / 2018 SMB M3 CS
Join Date: Aug 2014
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Quote:
Originally Posted by Chris_DM View Post
Disagree.

There is no "too long" or one-size-fits-all answer here. Only "what works for me in my situation".

When I financed my last new car (50% paid, 50% financed) my 60 month rate was 3% and 72 month rate was 3.19%. I took the 72 month because the roughly $2,000 difference over the term of the loan was worth the lower payments and security knowing that if I need more financial flexibility I have it. Sure I'll probably pay it off before 72 months, but I have the full 72 months if I want it and while credit is still cheap right now I'd rather lock that in and let it ride. This goes against my own advice, since I would have told myself to finance the whole thing at 3.19% and use that cash elsewhere, but that's a different topic.

The stigma of being upside down on a car like this is also kind of overblown IMO. You're either taking the loss in the upfront and losing on the opportunity cost of that money, or taking the loss in the end. Either way, it's the same to me but that's just my opinion.
Well said. I was just in a very similar situation, the financing department at the dealer I bought my car from was able to offer me 60/72/84 month terms since my credit is hovering around 800. I opted for the 72 month option @ 3.54%. My investments (both stock and real estate) are generating 10% cash-on-cash, I would prefer to have the excess cash flow to invest into those assets.

I think people also need to have a reality check with their professional trajectory. Have you been promoted consistently through the years or have you been doing the same job for 10 years and trying to squeeze it into your budget. I'm trying to make a 991.1 GT3 RS a reality in 2 years, at which point, $10K depreciation on my E92 wouldn't be a material factor in my overall budget. Plus, I wouldn't sell it, then it becomes a track toy.
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