Jump to content

Anybody's credit union do a true "auto loan" on old cars?


Recommended Posts

Yes, I know there are a lot of reasons that it's just plain dumb to take a loan out on any old car- that's a totally different discussion and one that I believe we've already had on these forums.ūüėČ

I'm just wondering if this is a thing other credit unions are doing in other parts of the country?

 

Here's the scoop on the one near me:

-website says "...we offer the same great rate no matter what year or make your vehicle is" 

- I casually mention this to my Rep I've been dealing with for years and he tells me that all they need is a vin number (so, 1954 or newer I guess?)so they can pull an NADA valuation on the unit and advance up to 110% of retail value.

-I ask if there are any stipulations requiring that a vehicle be bought through a dealer or if any inspection of collateral is required and he politely laughs at me. 

-Rates are under 3% all the way up 72 mo. for the credit qualified.

-This institution recently dropped their "federal" credit union title/designation. Maybe this somehow affords them the ability to do wacky stuff like this?

 

I'm pretty certain my wife would drop a toaster in my bath water if I ever took a loan out on an old car- I just think it's an intriguing concept given the rates these days.

Obviously there's got to be a catch somewhere but darned if I can figure it out. Anybody else ever heard of this? 

 

 

 

 

  • Like 1
Link to post
Share on other sites

In a divorce or bankruptcy it makes a difference. Best rate is on a home equity line of credit particularly if need to avoid increasing your MAGI..

Link to post
Share on other sites

 

12 hours ago, md murray said:

I just think it's an intriguing concept given the rates these days.

My credit union was odd...they don't offer auto loans on antique cars but they said because of what would be considered the collateral it be way better to do a personal loan (below 3 percent interest)ūü§∑‚Äć‚ôāÔłŹ

  • Like 1
Link to post
Share on other sites

Wow, typically unsecured debt like a personal loan has a much higher interest rate associated with it than any secured debt like an¬†auto loan. Interest rates on an unsecured loan¬†are literally double¬†an auto loan rate in the northeast where I am. That's pretty spectacular and makes it kind of hard to peel real cash off for a purchase.¬†¬†Unless of course you're stubborn and set in your ways (much like myself), which most old car guys are....ūüėĄ

Link to post
Share on other sites
17 hours ago, md murray said:

I'm pretty certain my wife would drop a toaster in my bath water if I ever took a loan out on an old car

 

"Dear, for the next 72 months my evenings and weekends will be spent disassembling and reassembling this worn out and neglected car back to its original condition. I am pretty sure all the work will be just as nice as I expect it to be. I paid $7500 cash for it and have budgeted about $350 average per month for the project. And a lot of months I won't spend any."

 

"Dear, I have stashed away $10,000 in cash. I found a nicely done car for $30,000. I can get the $20,000 from the bank and spread it out over about 4 years. Here's a picture. Isn't it sharp?"

 

"Finish your toast and we will go look at it."

 

I just read that to my wife. She laughed.

  • Like 1
Link to post
Share on other sites

a) right now home equity loans are running 3-5%

b) anyone here concerned about MAGI and IRMAA limiting 401K access ?

Link to post
Share on other sites
59 minutes ago, padgett said:

anyone here concerned about MAGI and IRMAA limiting 401K access ?

I say I‚Äôm¬†not, since I would have to look up those initials to see what you said.ūüėČ

  • Like 6
  • Thanks 1
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...