I'm thinking of picking up a V8 Vantage or DB9 Sports Pack next year (I'm going back to the dealer tomorrow to drive both). I was wondering if anyone has ever used Woodside credit. They let you take payments out to 144 months. I plan on paying the loan off in 2-3 years, but would like to know that if we decide to build another practice I can pay the "minimum" on any given month.

When I spoke to Woodside they said I can pay the loan off early, provided I keep it for at least two year. They didn't make it clear how I could pay down the principal as I pay it off early. I'm worried that I may end up needing to pay the entire value of the loan (principal + interest) even if I pay it off early.

Before people tell me that if "I can't afford to pay cash, I can't afford the car," I can take part of the payment as a deduction at the end of the year.

 

I might use them in 5months...If I choose to finance an 06-07 Vantage I wanna put $65,000 down on the car..Im hoping by then I can find a good one for $80-85k...Finance the remaining..

 

I am using Woodside for my 360 right now. The long term financing is great and no one would ever guess that my payments of the Ferrari is only $1200 per month (granted I put 12K down). There is a payoff at every stage of the billing so the financing is very front loaded so they get most of their cut early in the game. And Dr. G, you are right, you can write off part of the payment or depreciation at the end of the year.

Great option to leasing.

 

With the amount of money im puttin down for an $80k car im hopin(with a long term finance) my payments from them will be under $800 a month!?! Hmmm

 

if you have equity in your home and you could look at a line of credit. prime is now at 5.00% and if you have equity and good credit getting a heloc at prime isnt that hard.

$100k at 5.00% = interest only payment of $416 a month. apply the extra $$ towards the balance when you can and pay it off early.


be careful as we know home values are going down, so much sure the equity is there and dont cut it close!

 

Brilliant AJ for the fiscally responsible individual

 

AJ,

It is good advice, but Uncle Sam says I can only take deductions on the interest from home loans up to $1.1M (total of $1M for the 1st mortgage and $100K on the second). By consolidating and taking a HELOC I would actually lose some of my year-end deductions as compared to keeping my home loans the way they are now and adding an auto loan. Even with the additional few percent on the auto loan I would remain ahead come tax time.

 

Right. By the time I spec the car the way I want I'll probably be sitting at 190K+. I'll be putting down 25-30%.

 

Good call on this!!!

 

I just don't think payments spread out over 144 months can amount to much principal deductions within the first 2-3 years. If you pay the scheduled payment amortized over the 144 months spread, you may find yourself in negative equity IF you trade or sell the car in 2-3 years, unless you make bigger payments each time. I like this idea, i.e. the security of having lower fees if needed, but the flexibility of paying higher than minimum if you choose.
But, bear in mind the interest rate is going to be MUCH higher than a 60 or 72 months loan. So, even if you pay the car off in 2-3 years, you will have done that at a higher interest rate, translating to higher out of pocket $$ at the end

 

I agree, and Woodside requires anywhere from a 20-25% down payment on the purchase. After thinking about it, I would probably put the minimum required payment up front and put a very large chunk down after closing the loan. Any subsequent minimum monthly payments would reduce the principal much faster than if I were put the larger amount down before the loan closes. It would still give me the flexibility of having a lower payment - although I would still try to pay off the balance as quickly as possible.

BTW, I decided on the DB9 with the sports pack. I will be ordering it next spring/summer.

 

Great! congrats Dr. G

Make sure you look at the interest rate offered for the 140 month term. If it is much higher than a 72 month term, then it may not make much economic sense to do it. But I am sure you already know this

 

Woodside said 8.9% when last I spoke with them. My dealer said the banks they use are pretty much going to be the same. So it seems to make more sense to take the 144 mo payment option and pay it down fast, while still having the luxury of falling back on the "low" monthly payment if I need to use the money for other ventures at any given time.

 

Bank of America has new car loans for 60 months at 5.09% and 72 months for 5.69%. You can get additional 0.25% off by meeting certain requirements. I think if you did a side by side comparison, the $$ value would be quite similar

 

Hi everybody, I am applying for Auto Loan when Buying a Car from an Owner. Actually I am planning to buy a used car and I wanted to get a loan for the car, but I am not interested in getting a used car from a dealer. So I wanted to buy it from an owner. In this case how should I approach a bank or lender on getting the Auto Loan? Please advice me. Thank you very much in advance.