"save money"

[e90m3]

So I got this email:

I was curious how it could save me money given we got a 3.99% loan. Well, as it turns out, it's all smoke and mirrors:

Sure it's less money per month, but for how long? Sure, let me save $200/mo but pay for 2 years longer.

Interestingly enough, the most expensive loan is the one it says I have the worst shot at getting.

[fintail]

@e90m3 9.72%, sounds good! Maybe if Reagan was in office and houses could be purchased for 2 years of salary.

[ibRAD]

@e90m3 Of course it is smoke and mirrors.

The local toyota dealers are bragging about how well their vehicles hold their value, and in honour of that they're offering a special lease that will see you pay out nearly 40 grand of a 48 grand truck over 5 years. And then give it back.

[davesaddiction]

@e90m3

That asterisk is doing a lot of work here.

[ranwhenparked]

@fintail said in "save money":

purchased for 2 years of salary.

Well, my house was back in February, at least

[e90m3]

@ibRAD Leasing a Tacoma is about the dumbest thing you can do when it comes to buying or leasing a new car. My BIL leased a Tacoma.

[ibRAD]

@e90m3 I don't get it. In theory, leasing a tacoma should be nearly free.

[e90m3]

@davesaddiction Almost a much work as it's doing here:

[atfsgeoff]

@e90m3 said in "save money":

Well, as it turns out, it's all smoke and mirrors:

Ironclad rule of unsolicited financing offers: any prominent advertising of a monthly payment amount always means you are getting raked over the coals in interest over a ridiculously long term

[e90m3]

@atfsgeoff Right, which is why I was compelled to click the link. Had to see what the terms actually were.

[atfsgeoff]

@e90m3 the only unsolicited Finance offers actually worth considering, advertise the interest rate upfront and prominently

[davesaddiction]

@ibRAD @e90m3

I leased a Tacoma to myself for roughly $100 per year.

[ibRAD]

@davesaddiction That's about what the weekly payment is on the lease I posted above. With 5 grand down!

[MUSASHI66]

@e90m3 How did you get 3.99% on a BMW loan? I’ll be at 60 months at 6%, with 871 credit score… they just don’t have a batter rate.

[Dr. Zoidberg]

@e90m3 Intuit is pretty evil, no surprises here.

[pyroholtz]

@e90m3 I hadn't heard this story, thanks.

[Huzer]

@MUSASHI66 said in "save money":

@e90m3 How did you get 3.99% on a BMW loan? I’ll be at 60 months at 6%, with 871 credit score… they just don’t have a batter rate.

Did you get extra credit? I thought the highest available was 850.

The four extra months of waiting for the Bronco post-build drove mine up from 1.79% to 3.59%. That sucked when I saw two rate locks expire as the wait dragged on. We were able to snag 3.9% on my wife's Atlas in January.

With rising interest rates, at least I don't get 20 unsolicited refi your house/home equity offers weekly. Quite happy to have refi'd at the low point.

[Huzer]

@e90m3 I leased a Tundra in 2012. Since I sold it, rather than handing it back in, it worked out no different from a purchase. I sold it for significantly more than the residual, so after paying off the lease, I ended up with a decent chunk of change left over. It was quite similar, financially, to the purchase and sale of the Tacoma, where I essentially broke even and paid nearly nothing to drive them over the course of my time with the vehicle.

[MidEngine]

@e90m3 I leased mine @ 0% interest, then bought it out when the lease was up. I was being paid a monthly stipend from my company and it covered the lease payments. When I bought it out I had $12k in equity in the truck. I don't view any of that as stupid?

[Darkbrador]

@ibRAD

[MUSASHI66]

@Huzer This is the FICO score through my Costco Chase CC, and it seems to be through Experian.

900 is my holy grail. But, I'll probably take a hit as soon as the BMW arrives and we complete the financing.

I am ecstatic that our house is at 10 year/ 2.125%. That is probably as low as I've seen a mortgage interest rate, ever. I haven't seen a refi offer in months. Except from Sophi for wife's student loans, which we paid off 4.5 years ago...

[Huzer]

@MUSASHI66

Golly. Lots of versions. https://www.myfico.com/credit-education/credit-scores/fico-score-versions

I guess 900 is on the FICO Bankcard version, and not the FICO base, which is the 250-900 you have displayed. Weird.

[MUSASHI66]

@Huzer I hate the score. It is gamefied. They check my balances mid-month and say balance to credit ratio bad, when I pay off my CC every month. I would have to pay off the CC daily to carry no balance, and at that point, what's the point?

We should be the ideal people for a perfect credit score. We never carry a balance. One debt is the mortgage which is way overwater. We make plenty, never defaulted on a loan, never been late on a payment. That does makes us A+ tier, so 870 or 900 doesn't even matter - we'll qualify for the best offer - but I still want 900, because it is gamefied and I want the high score.

[MidEngine]

@MUSASHI66 My credit was dinged when I paid off my mortgage recently, the system makes zero sense. Credit score 821.

Summary

$697 Credit cards
$0 Collections
$0 Student loans
$0 Personal loans
$0 Auto loans
$0 Home loans

[HFV_Junkyardin]

@e90m3 Take that 200/month you're not spending and put it in Bitcoin, and you'll be a multi millionaire in no time.