personal line of credit vs car loan - Page 2
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Thread: personal line of credit vs car loan

  1. #11
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    Actually, we overpaid for the car as it was spring. We would have been better off buying in the fall.

    We're does your wife like to shop? Maybe we should both profit her with the stock! Let her know our day spa is always open for her. Haha


  2. #12
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    Quote Originally Posted by heyjude View Post
    The auto companies' finance divisions are offering way better rates than that. I recently financed a new Honda for 0.99% over 36 months. Some vehicles can be financed at 0%. Why bother with the banks?
    Because you're still most likely getting the loan from a bank.
    They also often offer cash purchase incentives, which are the difference between 0% and current car loan rates.

    When I bought my car I got 0% financing, which really turned out to a normal BMO car loan, but they discounted it by several thousand dollars so that I'd have the same payment. I then transferred the balance to my LOC which had a lower rate than the car loan.

  3. #13
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    Quote Originally Posted by MrMatt View Post
    Because you're still most likely getting the loan from a bank.
    They also often offer cash purchase incentives, which are the difference between 0% and current car loan rates.

    When I bought my car I got 0% financing, which really turned out to a normal BMO car loan, but they discounted it by several thousand dollars so that I'd have the same payment. I then transferred the balance to my LOC which had a lower rate than the car loan.
    Kinda makes you wonder when they will start with negative interest rates.... Haha

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  5. #14
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    Quote Originally Posted by sprocket1200 View Post
    Kinda makes you wonder when they will start with negative interest rates.... Haha
    I wouldn't be surprised if they did, it's a great advertising campaign, wanna go half in on a business method patent? Couldn't you see people going for this?

    This car is $20k cash, but if you spread the payments out to 5 years, you only pay $146 biweekly for a total of $19k, we want you to have this car so bad we'll actually PAY YOU one thousand dollars to take this low payment over 5 years.
    If you go to 7 years, the biweekly payment will drop to $99, for a total of only $18k, that's another THOUSAND DOLLARS, by using our special extra low payments, we're actually paying you to buy a car today!

  6. #15
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    From a business mindset I'd love to go for this. There are definitely enough financially illiterate Around to make millions from.

    However, from a compassionate human being point of view, I must decline as I would much rather help educate the masses and save them some heartache by being informed.

  7. #16
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    car loan comparison

    fastlaneloans.ca will compare loans from all dealers in your area getting them to compete and ensuring you the best rate (yes i signed up as an affiliate but they really do compare rates for free so no risk in at least trying and seeing the rates.)

  8. #17
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    Quote Originally Posted by MrMatt View Post
    we're actually paying you to buy a car today!
    I think they do this already, cash back car loans are frequently adverstised. I'm sure you've heard those "bad credit history, no money down, $1500 cash back, you're approved" ads.

  9. #18
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    Quote Originally Posted by daddybigbucks View Post
    Just when the world was starting to make sense, my wife wants a newer vehicle.
    I asked her to get pre-approved for a car loan at the bank.

    She call the bank and got the following rates, her line of credit rate is 5.75% a year but a car loan will be from 6% to 12% per year.
    Now why would the auto loan, which will be backed by a vehicle, be a higher interest rate than a personal line of credit that has no backing?

    Makes no sense to me (on the surface).
    Auto Loan Service can help you in this respect. Auto Loan Service is a resource for the many people who have not been able to get financing to buy a much-needed car because of a poor credit score. Search the internet for the ratings and reviews.

  10. #19
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    Quote Originally Posted by murphygx View Post
    fastlaneloans.ca will compare loans from all dealers in your area getting them to compete and ensuring you the best rate (yes i signed up as an affiliate but they really do compare rates for free so no risk in at least trying and seeing the rates.)
    With one post, where's the credibility? The site is gone, haha.


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