![]() The finance guy's recommended plan is to pay off most of the principal along with that first payment. So I went with a 75 month loan at 9.6% with the plan to pay it off as soon as possible. ![]() The dealerships "cash" prices was $3K higher than the price with their financing. Piggy backing on this old thread in hopes of some advice. I have never seen an auto loan have a prepayment penalty. You would have to read the loan documents. I read in a book on FAFSA that it's best to make major purchases or complete major purchases for this reason. I just want to have less assets by the end of the year so it doesn't count against aid. If I take into account the money I have in that total stock market fund as well, I would finance Just $6K.īut I do want to pay it off by the end of the year to, as you say, game the FAFSA paperwork. That would mean financing $16K on the car. But I am willing to drain down the excess since. I would like to preserve 6 months expenses in my money market account. My goal is basically to feel better about not having drained away most of my cash. What is your goal in getting the inexpensive loan but still paying it off early?Īre you trying to ensure you have sufficient emergency funds once the loan is paid off? Are you trying to game the FAFSA paperwork? My credit rating is currently 810, but it can't hurt to get a loan, pay it well, pay it off, to keep the good credit history.Ĭalico wrote: ↑ Mon 10:44 pmJust take out a 36 month loan and pay it off quicker than 36 months. So I will be paying more if I get a loan, but it might be worth it for the peace of mind of having a nest egg cushion for a while and it will help with my credit rating. That's slightly higher than my money market account return at 0.3%. I will certainly read my loan documents if I get a loan, but it's good to know there are usually no tricks involved. It's just part of my personality I guess. I am told very often that I overthink things. Take advantage of their promotional financing. It certainly could change, but our last two Subarus were paid off and refinanced early without any fees. If it’s Subaru financing through Chase, there is no prepayment penalty. I might take a day off work for this because I know I read and think clearer in the morning and I would like to review any documents like that early in the day. I know I will have to do some reading that day though. I was hoping to learn a little ahead of time so I could be prepared before I go to the dealership to close the deal. ![]() (I know, most people don't, hence a question like this.) For the manufacturer's financing, I would be surprised to see such a charge, but again, you need to read what you sign. As for origination fees, those should also be clearly shown on the loan documents. The contract will state what early payment penalties, if any, there are. The documents you sign for a loan are a contract. Does anyone know the details of this or where I can find these details? Google is not yielding results with details that I can review before going to the dealership to close the deal. Assets count against you for getting financial aid.īut then I read online there could be origination fees and early pay off fees. I have to fill out FAFSA paperwork this year for my daughter's college starting next year. I would be back down to 4 months expenses saved and it would take me a year build it up to 6 months at my current saving rate (and three years to build it back to where it is now).Īs an aside, I keep thinking that draining down my savings could be a good thing. It would just be a flatter cushion than before and I would feel pressure to build it back ASAP. I would still have a little bit of a nest egg cushion. ![]() I have the cash to pay for he car in full with the "out of the door" prices I am being quoted. I did find an online customer guide to Subaru loans but it leaves out any details about early pay off or origination fees. Just take out a 36 month loan and pay it off quicker than 36 months.īut then I read online there could be origination fees and early pay off fees. I have a high credit score, so I would most likely get the 0.9% financing. It's actually a bit illogical, but it's how I feel. I suppose it's the psychological feeling of spending that much money all at once. I am considering financing part of it just so I don't drain down my savings too much too quickly. I will be buying a Subaru Crosstrek soon.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |