How are you paying for your new C6?

[Radar]

Boy, I am really getting the bug to upgrade to a C6 convertible from my trusty (and paid for) C4. I am in the mulling it over stage, but would like to do it.

I was wondering how you all out there typically pay for your Corvettes. When you are looking a a Corvette with a sticker past $55K, the car loan is almost a mortgage!

I searched the site for this type of question, did not find a thread like this, so I appologize if this was done before.

So what's the scoop, bank - credit union - cash - home equity - dealer?

Respectfully,
Radar

 

[motorman]

question

with money so cheap,3.5% at my credit union why would you spend cash you could invest at 7-8% or more???? if you are using under the table money the dealer is required by federal law to report you if the deal is more than $10,000 cash

 

[CorvetteJake]

Question

You are correct, under the Patriot Act they are required ot report all cash transactions, I think over 5 grand (Could be 10), either way no one needs to have anyone looking at your transactions like that.
I have seen the C-6 Conv advertised for around 50k here in So Cal with money rates like they are, it makes things more affordable.
Also, if you have some Equit in your home, you might find a cheaper more tax deductable way to own a new C-6

Just my 2 cents

 

[motorman]

You are correct, under the Patriot Act they are required ot report all cash transactions, I think over 5 grand (Could be 10), either way no one needs to have anyone looking at your transactions like that.
I have seen the C-6 Conv advertised for around 50k here in So Cal with money rates like they are, it makes things more affordable.
Also, if you have some Equit in your home, you might find a cheaper more tax deductable way to own a new C-6

Just my 2 cents

the money reporting has been in place for years,not just since the patriot act, and it works this way,if you buy a used car for $5K cash and less that 12 months later you buy another $5K car for cash the dealer is required to report you to the feds.

 

[Radar]

With the price of C6's over $50,000, the car loan is nearly a mortgage. I was thinking of using a home equity loan so I can deduct the interest. I have plenty of equity in the house to pull that off.

I was worried about the deperciation the C6 will take in the first year and was thinking I am morgaging my house, that appreciates, to pay for a car that depreciates. Seems kind of backward. But............

Maybe my best bet would be to look for a nice 2003 or 2004 C5 and get most of the performance of the C6 and avoid part of that loss. On the other hand, the C5's will be falling too. So either way, there is cost. That is the price of progress!

So my voting poll was to see what the rest of you are considering. I appreciate any feedback you offer.

I really would like to enjoy the performance of the newer C5 and C6.

Radar

 

[rmonday]

with money so cheap,3.5% at my credit union why would you spend cash you could invest at 7-8% or more???? if you are using under the table money the dealer is required by federal law to report you if the deal is more than $10,000 cash

So if you pay for the car with a credit card and then pay that off is there reporting?

 

[Dakota kid]

“Every penny I find on the ground get me closer to buying a new corvette”:W

 

[bing616]

i paid cash for mine, i hate having bills hanging over my head..

 

[74bigblock]

I could trade in some of my other cars for one. OK, I'd have to trade them all in.

Radar,

I see you are from Oconomowoc. When I was a wee lad... I went to overnight camp up there.

 

[Radar]

i paid cash for mine, i hate having bills hanging over my head..

Now, that makes sense to me too. It really feels nice not having debt. I am thinking that I will wait a few years and the look for a one or two year old C6 rather than buying it new. That will save the initial depreciation losses. I might be able to swing a cash transaction with that smaller amount.

Radar

 

[Radar]

I could trade in some of my other cars for one. OK, I'd have to trade them all in.

Radar,

I see you are from Oconomowoc. When I was a wee lad... I went to overnight camp up there.

Oconomowoc is a very nice small city blessed with many area lakes.

I bet you camped at the Potowatomi Indian grounds camp site that is just north of I-94 and west of Hwy 67. That is a very cool area to camp. When my sons were small, we did an Indian Guides campout there. Very Cool.

Radar

 

[Grizzly]

Although a brand new car is a wonderous thing, I will never buy a new one again. The depreciation will kill you.

When I refinanced my mortgage a little while back, I arranged with the bank for an equity line of credit for the difference between the mortgage and the home's value. It has two advantages, one, the interest is tax deductable and second it is available at prime any time. It is just a another checkbook or credit card and you can strike a deal when you find it and then have some time to look for a better deal if you need to.

Happy Hunting!

 

[Dakota kid]

If I could get on it would be through the nose

 

[kingman]

Debit is bad!!!!!!!!!!!

If you cannot pay cash l would say don't buy it, but in today's world of creative financing when it comes to spending in excess of $15,000 there are smarted ways to make your money work.

I will not go into this on this forum, but ask your accountant and l'm sure he will explain it to you.

Paying cash will not help you in getting a better price, in fact it will probably cost you more because the dealer makes out like a bandit with their kick back on the financing charges. You can negotiate the finance charges.

Again in today's business climate to pay for something like a vette with cash is not a good business decision unless you are laundering money!!!!!!!! Only kidding about laundering money!

There are ways that you can finance a vette and get back an added bonus.

Alan

p.s. The last time l paid cash for a new car my accountant whipped me with his pen and ledger.

 

[OLDGOAT]

Since the dealer makes significant bucks on kickbacks on factory financing I wonder if a cash buyer might beat the house by financing it anyway and thus getting better price concessions from the dealer on the selling price. It the loan could be paid off early without penalty then the cash in hand buyer could do that immediately, and, except for a few months financing cost, might save a few thou? I guess the best way for a cash buyer to proceed would be to begin the negotiation as if it will be a factory financed deal in order to fish for the best price. Then, having agreed upon a price, he could whip out the checkbook. It might make for some entertaining backpedaling on the part of the dealer. I paid cash for my present C6 though the 1:1 version I'd like might need to be financed.

 

[kingman]

This is their game not ours!

OldGoat

No matter what you do they are prepared for it. They are trained to handle all situations. What they don't like more then taking in an older used car in trade is having a person come in and paying cash.

If at the end you announce that you are going to pay cash they will tell you right away that it will cost you more anyway so you would be better off paying it out.

Also keep in mind that if a dealership shows you his invoice for the car in question it already has his mark up in that invoice so it means nothing to you and l.

It's their sandbox period. You can also tell your salesperson that do not waste his or your time by getting up and going to his salesmanager to negotiate a better price. He is really going for a walk because as the price comes down so does his commission rate.

And if a salesmanager does come out he loses some of his commission to the house for being unable to close a deal by himself.

If the dealership doesn't make the right mark-up you don't get the car but maybe steered into another vehicle that does where they make what they want to.

The only way to beat a dealership is look in the paper for an advertisement where they mention 1 car only with a vin and call them from right outside of the dealership on a Saturday and ask if that particular vehicle is still available and get his name if possible or look through the window to see if you can pick out the person you are talking to. This vehicle is their loss leader for the week to attract people in.

Sometimes the person will tell you that it's been already sold even though you were the first person to walk through the door. Or they will say that it's available and get all your info and then sorry it's just been sold, but l have others. At that point get up and leave.

Alan

 

[OLDGOAT]

Yes, I agree with and understand all of your points Alan. I almost certainly will buy from a distant dealer ( we have only one real vette dealer in this 1.5 million metro area ) and either have it shipped from their stock or delivered to some rural dealer here for a small fee. I expect that it will be MSRP or higher around here at least well into the '06 year. As I've said in other posts I wish the car could be ordered direct from the factory and delivered to my driveway. The dealer adds NOTHING to the transaction. Most all the chevy dealers in my area I would not trust with a new vette as they don't sell but a few a year and simply cannot see many in their shops. Vette dealers are mostly fleas on the dog in my opinion. Thanks , though, for wising me up on the cash purchase. I may be able to go that route and ignorantly assumed that it would get me a preferencial price. So even an oldgoat can learn something! Thanks. OG

 

[RISKMGR]

I would like to know where you can get 7-8 % on your money! At leat not without serious risk to the principal.

 

[kingman]

Looking in the wrong places!!!!!!

Forget the stock market and the bond market because your money is alway's going to be at risk. If you look at the t-bills you will get nil and the same with the money markets.

The only way you can get a good return is in real estate period. And if you were in it, you would be a winner for the last several years big time. And if you were in it 10 yrs ago you would be an even bigger winner.

I have been into real estate since the early 70's and never have had a better return.

If you are looking for a good return that's relatively safe and you only have $55,000 to spend, buy a condo and rent it out. Depending where you live the price's and rents will differ but the one thing that remains constant is that no matter what the condo is worth the rent still goes up and if the condo appreciates you make that much more even after the taxes are paid.

Alan

 

[kingman]

One more thing!

I just noticed that you live on Long Island, my closest investment to you is in Flushing, New York. It's a 3 family brick attached house right next to the LIE.

My buddy just sold his house because he had to on Dune Road in Westhampton where he paid $375,000, put another $250,000 into it and sold it last Sept for $1,600,000 less brokers commission.

He is now renting a place in Remsengberg or something like that in about 4-5 miles from the beach and now working in town selling real estate.

Three guys got together and bought a house for $600,000 and will put at first $300,000 into it but they will wind up putting into it $500,000 (bank loans) and will put it up for sale in the $2 million area. Now that's not bad in this market.

I didn't get involved in it because l feel the Hampton area is at it's peak but l could be wrong.

Alan