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Posted: 7/7/2015 9:26:49 PM EDT
[#1]
I had the exact situation happen to me about 8 years ago. Great steady job, making $75k or so a year, 790 credit score, no real debt. Went into my long time credit union to get pre-approved for the loan. Figured just a formality. After filling out the paperwork Sat with the loan officer for about 30 mins with him leaving and coming back every few minutes. Finally ask what the problem is and he gives me the same line as was given to OP. Loan officer said his manager wouldn't approve it and he agreed with me it was bs. I told him I was tired of waiting and going home and to tell his manger he had til the end of the day to approve me or I would be waiting for the doors to open in the morning to clean out and close my accounts. I had a message waiting when I got home that I was approved.
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Posted: 7/7/2015 9:26:58 PM EDT
[#2]
You have to catch the Ford Credit "sales" at the right time. (which is often) I've gotten 0% or 0.9% for 60 months and 1.9% for 72 months offered to me a few different times. The 4.9% rate is probably their base non-sale rate, but they'll negotiate that just like the price of the car, if your credit has no bad marks.
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Posted: 7/7/2015 9:28:55 PM EDT
[#3]
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Exactly. Ford will finance me at some outrageous rate and give me $1000 off the truck to do it, but not my CU that I've been dealing with for 4 years. I guess they see that money and want me to use some of it? Or are stuck that I'd be going from a 23k auto loan to a 41k. Who knows. Quote HistoryQuoted:
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I have the liquidity to just buy the truck but that's besides the point. then I find it tough to believe that they wouldn't finance it... especially being a homeowner Exactly. Ford will finance me at some outrageous rate and give me $1000 off the truck to do it, but not my CU that I've been dealing with for 4 years. I guess they see that money and want me to use some of it? Or are stuck that I'd be going from a 23k auto loan to a 41k. Who knows. You know there are more lenders out there besides your credit union and the dealer, right? |
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Posted: 7/7/2015 9:29:09 PM EDT
[#4]
I was told by a loan officer that I didn't have enough going out and was denied for the loan.
A new Gander Mountain opened near me and I applied for a credit card through them. I had not had a credit card for two or three years. My credit score jumped up at least 100 points just by getting that Gander Mountain credit card. |
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Posted: 7/7/2015 9:29:45 PM EDT
[#5]
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How much higher can my FICO score go? 
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Here's the result of me not having any debt.A FICO score of 814 and what's hurting it: The largest credit limit on open bankcard or revolving account is too low. AND Total of all balances on open bankcards and revolving accounts is too high.  I have no balance on anything, I have no debt.
They're reporting the amounts due and % of limit. Get your limits raised and the problem goes away. I have the same problem because my business Amex routinely has 20k on it at the end of the month. How much higher can my FICO score go?
Take a grain of salt to what FICO reports say about your score. For me, good - long credit history (EQ - TU); bad - short credit history (EX) |
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Posted: 7/7/2015 9:30:23 PM EDT
[#6]
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How much of your monthly take home goes out with the mortgage? Quote HistoryQuoted:
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Preface being I'm in my mid 20s, no debt ever except for a $23k truck note four years ago and my current house. I make between 60-85k a year. I want to buy a new F150. I want to finance $41k of it. My credit union will only finance 35k, and that was after rejecting their initial 25k offer. How much of your monthly take home goes out with the mortgage? Not counting commission, about 40%. Commission obviously varies, but usually just my monthly commission is 1-2x my mortgage payment. |
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Posted: 7/7/2015 9:30:36 PM EDT
[#7]
Finance it through the dealer, then refinance it through your credit union.
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Posted: 7/7/2015 9:30:40 PM EDT
[#8]
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I have only ever bought vehicles in cash. Loans are for those bad at math. Quote HistoryQuoted:
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Preface being I'm in my mid 20s, no debt ever except for a $23k truck note four years ago and my current house. I make between 60-85k a year. I want to buy a new F150. I want to finance $41k of it. My credit union will only finance 35k, and that was after rejecting their initial 25k offer. The reason? My last auto note was only 23k and I haven't worked my way up. If I had another note in there, say 35k, they would have approved me, but a $18k jump is just too much. I have the liquidity to just buy the truck but that's besides the point. /woe is me thread. I have only ever bought vehicles in cash. Loans are for those bad at math. Lol. Ironic. |
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Posted: 7/7/2015 9:32:28 PM EDT
[#9]
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How much does an F150 cost if you need to finance 41k of it? That seems like a lot of coin for a half ton. 41k OTD. It's an optioned out XLT so its not even close to King Ranch or Platinum money. Those would be more like 50 OTD. |
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Posted: 7/7/2015 9:32:45 PM EDT
[#10]
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Preface being I'm in my mid 20s, no debt ever except for a $23k truck note four years ago and my current house. I make between 60-85k a year. I want to buy a new F150. I want to finance $41k of it. My credit union will only finance 35k, and that was after rejecting their initial 25k offer. The reason? My last auto note was only 23k and I haven't worked my way up. If I had another note in there, say 35k, they would have approved me, but a $18k jump is just too much. I have the liquidity to just buy the truck but that's besides the point. /woe is me thread. If you're buying new, the dealership's finance manager will get you financed,,,,pretty much no matter what, When I bought my current vehicle, Chase Bank refused to finance me. This after I had run over a half a million bucks through my accounts with them in the preceding few years. The Credit Union that financed my RV the year before agreed to finance the loan. After I drove from San Antonio to Houston to pick up my new rig on Friday evening....the Credit Union had failed to fax the paperwork to the dealership. They wouldn't be open again until Monday morning. Needless to say...I was pissed!! The salesman hooked me up with their credit manager and he had me financed in a heartbeat.....through Chase...and at a lower interest rate than the CU too. Go figger.
The credit manager told me that he could get anybody financed. 
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Posted: 7/7/2015 9:33:41 PM EDT
[#11]
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Current FICO score? 740. Was high 7s but recent mortgage dropped it. |
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Posted: 7/7/2015 9:34:01 PM EDT
[#12]
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41k OTD Quote HistoryQuoted:
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How much does an F150 cost if you need to finance 41k of it? That seems like a lot of coin for a half ton. 41k OTD This is why. 100% financing on an asset that depreciates as rapidly as a car/truck is not likely to happen. Unless it's a buy-here, pay-here place. |
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Posted: 7/7/2015 9:36:47 PM EDT
[#13]
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Finance it through the dealer, then refinance it through your credit union. Any downsides to this? |
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Posted: 7/7/2015 9:40:06 PM EDT
[#14]
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This is why. 100% financing on an asset that depreciates as rapidly as a car/truck is not likely to happen. Unless it's a buy-here, pay-here place. Quote HistoryQuoted:
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How much does an F150 cost if you need to finance 41k of it? That seems like a lot of coin for a half ton. 41k OTD This is why. 100% financing on an asset that depreciates as rapidly as a car/truck is not likely to happen. Unless it's a buy-here, pay-here place. The credit union didn't ask the sell price of the vehicle, just how much I wanted to finance. With the cash in my checking alone that could be a new $60k Audi for all they know. |
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Posted: 7/7/2015 9:44:11 PM EDT
[#15]
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The credit union didn't ask the sell price of the vehicle, just how much I wanted to finance. With the cash in my checking alone that could be a new $60k Audi for all they know. Quote HistoryQuoted:
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How much does an F150 cost if you need to finance 41k of it? That seems like a lot of coin for a half ton. 41k OTD This is why. 100% financing on an asset that depreciates as rapidly as a car/truck is not likely to happen. Unless it's a buy-here, pay-here place. The credit union didn't ask the sell price of the vehicle, just how much I wanted to finance. With the cash in my checking alone that could be a new $60k Audi for all they know. Try a new credit union. When I got my first car loan, I applied at two credit unions and I had to sign up to be a member. No deposits at the credit unions. |
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Posted: 7/7/2015 9:45:35 PM EDT
[#16]
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Houston area? Quote HistoryQuoted:
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I'm willing to bet you they'll drop the shit out of the interest rate (assuming you have stellar credit) if you tell them you'd 'rather go through ford than the credit union'. I got a 1.5% loan for 60 months a couple years ago when the original offer was 4.5%. Someone will play ball - even if it's not ford it'll be chevy. I notice you're in texas. I have a spectacular sales guy if you want his name - he'll hook you up and even bring the truck to you. You won't even have to go into the dealership to sign the paperwork. Just tell him exactly what you're looking for (and tell him if you found it at another lot) or have him order it. It's the best damn way to shop for a truck.. Houston area? PM sent - he's in Sealy |
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Posted: 7/7/2015 9:57:04 PM EDT
[#17]
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You know there are more lenders out there besides your credit union and the dealer, right? Quote HistoryQuoted:
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I have the liquidity to just buy the truck but that's besides the point. then I find it tough to believe that they wouldn't finance it... especially being a homeowner Exactly. Ford will finance me at some outrageous rate and give me $1000 off the truck to do it, but not my CU that I've been dealing with for 4 years. I guess they see that money and want me to use some of it? Or are stuck that I'd be going from a 23k auto loan to a 41k. Who knows. You know there are more lenders out there besides your credit union and the dealer, right? And 4/5 of the loan officers out there don't know their ass from a hole in the ground. |
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Posted: 7/7/2015 10:01:07 PM EDT
[#18]
Not having debt and not using credit are two very different things. You can use credit and have and excellent credit score without going into debt.
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Posted: 7/7/2015 10:03:51 PM EDT
[#19]
Shop around
You can probably find a more willing lender and good,rate. |
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Posted: 7/7/2015 10:03:57 PM EDT
[#20]
It's a risk on the credit unions part. They also need to consider what happens if you can't or don't make your payments. New vehicles depreciate at an alarming rate, it's even worse when you switch from retail values to auction values, which by their nature fluctuate like crazy. That low resale combined with the lack of auto history makes it a decision for the loan officer. Apparently that one is a bit shy when it comes to risk.
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Posted: 7/7/2015 10:11:09 PM EDT
[#21]
Quote HistoryQuoted: Fully optioned top trim ford's sticker over 60k. I agree, it's ridiculous. Quote HistoryQuoted: Quoted: a new truck cost 41k? A F150? Fully optioned top trim ford's sticker over 60k. I agree, it's ridiculous.  |
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Posted: 7/7/2015 10:27:27 PM EDT
[#22]
build some credit
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Posted: 7/7/2015 10:31:10 PM EDT
[#23]
whoever has the money makes the rules.
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Posted: 7/7/2015 10:32:16 PM EDT
[#24]
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And the stereo sucks.
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a new truck cost 41k? A F150? Fully optioned top trim ford's sticker over 60k. I agree, it's ridiculous.
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Posted: 7/7/2015 10:35:39 PM EDT
[#25]
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4.9% for 60+ is the base rate according to the sales guy. Quote HistoryQuoted:
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I have the liquidity to just buy the truck but that's besides the point. then I find it tough to believe that they wouldn't finance it... especially being a homeowner Exactly. Ford will finance me at some outrageous rate and give me $1000 off the truck to do it, but not my CU that I've been dealing with for 4 years. I guess they see that money and want me to use some of it? Or are stuck that I'd be going from a 23k auto loan to a 41k. Who knows. Just curious, what rate is Ford offering you? 4.9% for 60+ is the base rate according to the sales guy. That's absolutely retarded. I just borrowed a fuck ton more than that at a slightly lower rate. If the info you've given us is correct, you should be getting lower than that. |
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Posted: 7/7/2015 10:35:44 PM EDT
[#26]
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you say you have the cash to buy the truck outright, so why not just put enough down to get you to the $35k your CU has you capped at? it doesnt seem too hard to understand why a bank would be leery of giving someone your age, with a light credit history, $41k Because this is a "look at me look at me look at me, I claim to own a house and have no debt in my 20s" thread |
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Posted: 7/7/2015 10:37:21 PM EDT
[#27]
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How much does an F150 cost if you need to finance 41k of it? That seems like a lot of coin for a half ton. It looks like he's in crew cab diesel territory. ETA: I guess there's no trade in and he's not putting any down. Most certainly because the money in his savings acct/money market is making more than the finance rate. |
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Posted: 7/7/2015 10:40:42 PM EDT
[#28]
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The credit union didn't ask the sell price of the vehicle, just how much I wanted to finance. With the cash in my checking alone that could be a new $60k Audi for all they know. Quote HistoryQuoted:
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How much does an F150 cost if you need to finance 41k of it? That seems like a lot of coin for a half ton. 41k OTD This is why. 100% financing on an asset that depreciates as rapidly as a car/truck is not likely to happen. Unless it's a buy-here, pay-here place. The credit union didn't ask the sell price of the vehicle, just how much I wanted to finance. With the cash in my checking alone that could be a new $60k Audi for all they know. Uh, did they ask for what kind of vehicle? I find it hard to believe the credit app just consists of "Who are you and how much money do you want" when it is an automotive loan specifically. |
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Posted: 7/7/2015 10:41:41 PM EDT
[#29]
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Aaaa, 4.9 is a very good rate on a vehicle historically. The 0% hogwash is marketing either/or. Is the $1000 off of MSRP? Learn to make bold offers at 4.9% to ford, say 10% off msrp. Try it and see if they bite. Dont be afraid to make an offer, the worst they an say is no. 4.9% for 60+ is the base rate according to the sales guy. Quote HistoryQuoted:
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I have the liquidity to just buy the truck but that's besides the point. then I find it tough to believe that they wouldn't finance it... especially being a homeowner Exactly. Ford will finance me at some outrageous rate and give me $1000 off the truck to do it, but not my CU that I've been dealing with for 4 years. I guess they see that money and want me to use some of it? Or are stuck that I'd be going from a 23k auto loan to a 41k. Who knows. Just curious, what rate is Ford offering you? Aaaa, 4.9 is a very good rate on a vehicle historically. The 0% hogwash is marketing either/or. Is the $1000 off of MSRP? Learn to make bold offers at 4.9% to ford, say 10% off msrp. Try it and see if they bite. Dont be afraid to make an offer, the worst they an say is no. 4.9% for 60+ is the base rate according to the sales guy. |
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Posted: 7/7/2015 10:42:47 PM EDT
[#30]
You claim to have the liquidity to buy the truck out right. Why don't you? Living in debt no matter how marginal sucks! The smart man would just pay for it outright if they have the means. I call bullshit.
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Posted: 7/7/2015 10:45:19 PM EDT
[#31]
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Exactly. Ford will finance me at some outrageous rate and give me $1000 off the truck to do it, but not my CU that I've been dealing with for 4 years. I guess they see that money and want me to use some of it? Or are stuck that I'd be going from a 23k auto loan to a 41k. Who knows. Quote HistoryQuoted:
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I have the liquidity to just buy the truck but that's besides the point. then I find it tough to believe that they wouldn't finance it... especially being a homeowner Exactly. Ford will finance me at some outrageous rate and give me $1000 off the truck to do it, but not my CU that I've been dealing with for 4 years. I guess they see that money and want me to use some of it? Or are stuck that I'd be going from a 23k auto loan to a 41k. Who knows. Ford wants to make a sale. |
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Posted: 7/7/2015 10:45:46 PM EDT
[#32]
My CU won't give me a $10k HELOC because I'm self employed. And I own the home outright, no mortage or leins and I'm the only one on the title. It's worth around $250k.
Rules are rules, but sometimes they make no sense. |
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Posted: 7/7/2015 10:46:28 PM EDT
[#33]
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This is why. 100% financing on an asset that depreciates as rapidly as a car/truck is not likely to happen. Unless it's a buy-here, pay-here place. Quote HistoryQuoted:
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How much does an F150 cost if you need to finance 41k of it? That seems like a lot of coin for a half ton. 41k OTD This is why. 100% financing on an asset that depreciates as rapidly as a car/truck is not likely to happen. Unless it's a buy-here, pay-here place. I don't know if it's not an industry standard but my credit union has always been willing to finance 100% of the purchase price including tax, license, and service contracts. |
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Posted: 7/7/2015 10:48:14 PM EDT
[#34]
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The credit union didn't ask the sell price of the vehicle, just how much I wanted to finance. With the cash in my checking alone that could be a new $60k Audi for all they know. Quote HistoryQuoted:
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How much does an F150 cost if you need to finance 41k of it? That seems like a lot of coin for a half ton. 41k OTD This is why. 100% financing on an asset that depreciates as rapidly as a car/truck is not likely to happen. Unless it's a buy-here, pay-here place. The credit union didn't ask the sell price of the vehicle, just how much I wanted to finance. With the cash in my checking alone that could be a new $60k Audi for all they know. If they asked what vehicle you were buying, they have enough info to know the score. Any lender on a secured loan is going to want to know what the security is. If they didn't ask, then maybe the loan they quoted was a personal loan which is a different animal from a car loan. |
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Posted: 7/7/2015 10:51:07 PM EDT
[#35]
Do you have much more liquidity I know it's scary to bite the billet but why bother paying interest. You have the cash.
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Posted: 7/7/2015 10:51:29 PM EDT
[#36]
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Uh, did they ask for what kind of vehicle? I find it hard to believe the credit app just consists of "Who are you and how much money do you want" when it is an automotive loan specifically. Quote HistoryQuoted:
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How much does an F150 cost if you need to finance 41k of it? That seems like a lot of coin for a half ton. 41k OTD This is why. 100% financing on an asset that depreciates as rapidly as a car/truck is not likely to happen. Unless it's a buy-here, pay-here place. The credit union didn't ask the sell price of the vehicle, just how much I wanted to finance. With the cash in my checking alone that could be a new $60k Audi for all they know. Uh, did they ask for what kind of vehicle? I find it hard to believe the credit app just consists of "Who are you and how much money do you want" when it is an automotive loan specifically. Didn't ask. |
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Posted: 7/7/2015 10:52:36 PM EDT
[#37]
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You claim to have the liquidity to buy the truck out right. Why don't you? Living in debt no matter how marginal sucks! The smart man would just pay for it outright if they have the means. I call bullshit. Because I can make more money by putting it in an index fund instead? Despite what Ramsey says, if you have half a brain, debt and financing is a smart thing to do, granted you take the rest of your money and do something with it. |
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Posted: 7/7/2015 10:54:09 PM EDT
[#38]
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Statements like that are for those who think they are good with money. Quote HistoryQuoted:
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Preface being I'm in my mid 20s, no debt ever except for a $23k truck note four years ago and my current house. I make between 60-85k a year. I want to buy a new F150. I want to finance $41k of it. My credit union will only finance 35k, and that was after rejecting their initial 25k offer. The reason? My last auto note was only 23k and I haven't worked my way up. If I had another note in there, say 35k, they would have approved me, but a $18k jump is just too much. I have the liquidity to just buy the truck but that's besides the point. /woe is me thread. I have only ever bought vehicles in cash. Loans are for those bad at math. Statements like that are for those who think they are good with money. statements like yours tell me you have no money. do you have a negative net worth? |
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Posted: 7/7/2015 10:55:06 PM EDT
[#39]
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statements like yours tell me you have no money. do you have a negative net worth? Quote HistoryQuoted:
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Preface being I'm in my mid 20s, no debt ever except for a $23k truck note four years ago and my current house. I make between 60-85k a year. I want to buy a new F150. I want to finance $41k of it. My credit union will only finance 35k, and that was after rejecting their initial 25k offer. The reason? My last auto note was only 23k and I haven't worked my way up. If I had another note in there, say 35k, they would have approved me, but a $18k jump is just too much. I have the liquidity to just buy the truck but that's besides the point. /woe is me thread. I have only ever bought vehicles in cash. Loans are for those bad at math. Statements like that are for those who think they are good with money. statements like yours tell me you have no money. do you have a negative net worth? Maybe his worth is in investments? |
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Posted: 7/7/2015 10:57:21 PM EDT
[#40]
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Because this is a "look at me look at me look at me, I claim to own a house and have no debt in my 20s" thread Quote HistoryQuoted:
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you say you have the cash to buy the truck outright, so why not just put enough down to get you to the $35k your CU has you capped at? it doesnt seem too hard to understand why a bank would be leery of giving someone your age, with a light credit history, $41k Because this is a "look at me look at me look at me, I claim to own a house and have no debt in my 20s" thread I mean you can come be my friend and I'll show you my life story if you want? |
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Posted: 7/7/2015 10:57:36 PM EDT
[#41]
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Absolutely true, I bank(have done so for the past 25+ years) at a small locally owned bank that doesn't report to the credit agency's. I can call THEM on the phone, tell them I need $75K to purchase some equip, bank president says " write the check , come in within the next week we'll have the paperwork ready for you to sign". Done it several times in the last 10 years. Yet I can't get a home refi, from any other lender - as I don't have a credit rating  Quote HistoryQuoted:
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I find that hard to believe, unless your income doesn't support the debt load. Underwriting looks at the amount in regards to that, your debt to income ratio. It has nothing to do with going from one amount to the other "on your record." Someone is bullshitting you. Absolutely true, I bank(have done so for the past 25+ years) at a small locally owned bank that doesn't report to the credit agency's. I can call THEM on the phone, tell them I need $75K to purchase some equip, bank president says " write the check , come in within the next week we'll have the paperwork ready for you to sign". Done it several times in the last 10 years. Yet I can't get a home refi, from any other lender - as I don't have a credit rating What does one have to do with the other? 
You simply don't have a good credit rating because you have little credit. That could be OP's scenario though with two loans it sounds more like debt to income. |
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Posted: 7/7/2015 10:59:47 PM EDT
[#42]
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Do this math: You pay 80k for a BMW 550i in cash. I finance an 80k 550i with BMWNA for 24 months at 0.9%apr I put that 80k in an investment account and make an average of 1.8% per month selling puts. My top margina effectivel tax rate is 46%. Who wins? Hint:Failure to understand leverage isn't being financially smart no matter what Dave Ramsey told you. Quote HistoryQuoted:
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Preface being I'm in my mid 20s, no debt ever except for a $23k truck note four years ago and my current house. I make between 60-85k a year. I want to buy a new F150. I want to finance $41k of it. My credit union will only finance 35k, and that was after rejecting their initial 25k offer. The reason? My last auto note was only 23k and I haven't worked my way up. If I had another note in there, say 35k, they would have approved me, but a $18k jump is just too much. I have the liquidity to just buy the truck but that's besides the point. /woe is me thread. I have only ever bought vehicles in cash. Loans are for those bad at math. Do this math: You pay 80k for a BMW 550i in cash. I finance an 80k 550i with BMWNA for 24 months at 0.9%apr I put that 80k in an investment account and make an average of 1.8% per month selling puts. My top margina effectivel tax rate is 46%. Who wins? Hint:Failure to understand leverage isn't being financially smart no matter what Dave Ramsey told you. you fail to account for risk in your little theory. in real life america that never happens. you have two types of people. one pays cash for a car( probably a used car) and invests the rest. the other person finances the car, the boat, the atv, the motor cycle, the home and blows a ton on a card every month. you hypothetical does not happen in america and you know it. |
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Posted: 7/7/2015 11:00:07 PM EDT
[#43]
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Because I can make more money by putting it in an index fund instead? Despite what Ramsey says, if you have half a brain, debt and financing is a smart thing to do, granted you take the rest of your money and do something with it. Quote HistoryQuoted:
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You claim to have the liquidity to buy the truck out right. Why don't you? Living in debt no matter how marginal sucks! The smart man would just pay for it outright if they have the means. I call bullshit. Because I can make more money by putting it in an index fund instead? Despite what Ramsey says, if you have half a brain, debt and financing is a smart thing to do, granted you take the rest of your money and do something with it. Didn't you say earlier that you had it in their bank in cash? |
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Posted: 7/7/2015 11:00:45 PM EDT
[#44]
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How much higher can my FICO score go?
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Here's the result of me not having any debt.A FICO score of 814 and what's hurting it: The largest credit limit on open bankcard or revolving account is too low. AND Total of all balances on open bankcards and revolving accounts is too high. I have no balance on anything, I have no debt.
They're reporting the amounts due and % of limit. Get your limits raised and the problem goes away. I have the same problem because my business Amex routinely has 20k on it at the end of the month. How much higher can my FICO score go?
Theoretically? 851 |
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Posted: 7/7/2015 11:03:59 PM EDT
[#45]
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Because I can make more money by putting it in an index fund instead? Despite what Ramsey says, if you have half a brain, debt and financing is a smart thing to do, granted you take the rest of your money and do something with it. Quote HistoryQuoted:
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You claim to have the liquidity to buy the truck out right. Why don't you? Living in debt no matter how marginal sucks! The smart man would just pay for it outright if they have the means. I call bullshit. Because I can make more money by putting it in an index fund instead? Despite what Ramsey says, if you have half a brain, debt and financing is a smart thing to do, granted you take the rest of your money and do something with it. what happens when you lose you job a month after you buy the truck? |
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Posted: 7/7/2015 11:05:27 PM EDT
[#46]
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My CU won't give me a $10k HELOC because I'm self employed. And I own the home outright, no mortage or leins and I'm the only one on the title. It's worth around $250k. Rules are rules, but sometimes they make no sense. Do you write everything off so your 1040 shows no income? I've had to tell folks making $300k that they were denied because they wrote EVERYTHING off which made their tax liability low... but same for their actual income. Eh... can't have your cake and eat it too. |
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Posted: 7/7/2015 11:05:59 PM EDT
[#47]
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you fail to account for risk in your little theory. in real life america that never happens. you have two types of people. one pays cash for a car( probably a used car) and invests the rest. the other person finances the car, the boat, the atv, the motor cycle, the home and blows a ton on a card every month. you hypothetical does not happen in america and you know it. Quote HistoryQuoted:
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Preface being I'm in my mid 20s, no debt ever except for a $23k truck note four years ago and my current house. I make between 60-85k a year. I want to buy a new F150. I want to finance $41k of it. My credit union will only finance 35k, and that was after rejecting their initial 25k offer. The reason? My last auto note was only 23k and I haven't worked my way up. If I had another note in there, say 35k, they would have approved me, but a $18k jump is just too much. I have the liquidity to just buy the truck but that's besides the point. /woe is me thread. I have only ever bought vehicles in cash. Loans are for those bad at math. Do this math: You pay 80k for a BMW 550i in cash. I finance an 80k 550i with BMWNA for 24 months at 0.9%apr I put that 80k in an investment account and make an average of 1.8% per month selling puts. My top margina effectivel tax rate is 46%. Who wins? Hint:Failure to understand leverage isn't being financially smart no matter what Dave Ramsey told you. you fail to account for risk in your little theory. in real life america that never happens. you have two types of people. one pays cash for a car( probably a used car) and invests the rest. the other person finances the car, the boat, the atv, the motor cycle, the home and blows a ton on a card every month. you hypothetical does not happen in america and you know it.
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Posted: 7/7/2015 11:08:06 PM EDT
[#48]
I find it ironic when people champion being debt free or as close as possible to it and then bemoan the challenges of being able to leverage debt. You either play the game or stay out.
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Posted: 7/7/2015 11:10:04 PM EDT
[#49]
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Maybe his worth is in investments? Quote HistoryQuoted:
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Preface being I'm in my mid 20s, no debt ever except for a $23k truck note four years ago and my current house. I make between 60-85k a year. I want to buy a new F150. I want to finance $41k of it. My credit union will only finance 35k, and that was after rejecting their initial 25k offer. The reason? My last auto note was only 23k and I haven't worked my way up. If I had another note in there, say 35k, they would have approved me, but a $18k jump is just too much. I have the liquidity to just buy the truck but that's besides the point. /woe is me thread. I have only ever bought vehicles in cash. Loans are for those bad at math. Statements like that are for those who think they are good with money. statements like yours tell me you have no money. do you have a negative net worth? Maybe his worth is in investments? i doubt his investments out weigh his debts. if you have $50000 in investments but owe $300000 on a house, $75000 in student loans and $30000 in car loans you are doing it wrong. unfortunately this is how americans in 2015 are with money. just like the 2008 housing collapse we will see who loses everything in the next down turn in the economy. |
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Posted: 7/7/2015 11:12:33 PM EDT
[#50]
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Preface being I'm in my mid 20s, no debt ever except for a $23k truck note four years ago and my current house. I make between 60-85k a year. I want to buy a new F150. I want to finance $41k of it. My credit union will only finance 35k, and that was after rejecting their initial 25k offer. The reason? My last auto note was only 23k and I haven't worked my way up. If I had another note in there, say 35k, they would have approved me, but a $18k jump is just too much. I have the liquidity to just buy the truck but that's besides the point. /woe is me thread. I have only ever bought vehicles in cash. Loans are for those bad at math. Do this math: You pay 80k for a BMW 550i in cash. I finance an 80k 550i with BMWNA for 24 months at 0.9%apr I put that 80k in an investment account and make an average of 1.8% per month selling puts. My top margina effectivel tax rate is 46%. Who wins? Hint:Failure to understand leverage isn't being financially smart no matter what Dave Ramsey told you. you fail to account for risk in your little theory. in real life america that never happens. you have two types of people. one pays cash for a car( probably a used car) and invests the rest. the other person finances the car, the boat, the atv, the motor cycle, the home and blows a ton on a card every month. you hypothetical does not happen in america and you know it.
i guess you where in grade school in 2008. the housing bubble popped and a metric ton of cars where repoed and houses where foreclosed. google it. |
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