How much do you pay for your cars compared to income?

[jagec]

The other car we own we bought 3 years ago and I only took a loan to get the incentives, then paid it off right away because the rate was terrible. I got like $2500 to take the loan though.

Story copy/pasted from Fatwallet...was this you?

My wife and I were sitting across from a salesman at a Toyota dealer finalizing a purchase when I looked up and saw a huge banner that said "$1000 OFF FOR NEW COLLEGE GRADUATES".

I pointed upwards and said, "Does that apply to graduate degrees granted within the last 6 months?"

He says, "Yes, yes it does."

I stand up and say with a smile, "My wife would like to purchase this vehicle".

I change places with my wife.

Guy is amused. He does some paperwork, walks away, comes back five minutes later. He says, "Apparently the only way to get the $1000 off is to finance the vehicle, and use Toyota Motor Credit for the loan."

I say, "OK, what's the minimum I, errr, she can finance? $50? $100? $500?"

He says, "No one has ever asked me that question before. Be right back..."

He comes back five minutes later.

He says, "You have to finance half the total."

I say, "Ok, write it up."

He says I have to meet with the finance guy first.

I say, "The finance guy is not going to like me, at all."

We go to the "finance office". You know what those people look and act like.

He says all professionally, "Hi, I'm here to help you get this brand new vehicle, the vehicle you want and love".

I say, "Excellent. Stop talking, write up the paperwork."

He does his thing, runs my credit, explains how a car loan works, what something called "APR" means, explains what happens if I default, etc etc etc. Meanwhile he is typing feverishly into his terminal.

I ask him for the payoff amount.

He says, "What?"

I say, "How much do I owe on the loan, today?"

He says, "Today? Before you have made any payments? It's basically the loan amount plus this $(minor) loan processing fee"

I say, "The total payoff, please", as I get out my checkbook and lay it on the table.

He looks incredulous. "It doesn't work that way."

I say, "The guy over there said I would get $1000 off the vehicle if I financed half the purchase price. You have just arranged financing for half the purchase price. So thanks to you I have a loan. I would now like to pay off the loan. Here. Now. Right now."

He looks even more incredulous. "It doesn't work that way."

I say, "Explain. Use as much detail as you think is necessary."

Toyota Motor Credit, the dealer, different entities, loan processing time, loan underwriting time, loan paperwork to be done, payment booklet to be mailed, blah blah blah.

I say, "When can I pay off the loan?"

He says, "Probably the day after you get the loan payment booklet. I think that might still cause problems because your first payment sets in motion a few things at TMC. "

I say, "Don't care about that... and we're done here."

I drive away in my wife's new vehicle. It's half-financed. She tells me I owe her for my half of her car.

About 3 weeks later the loan booklet arrives in the mail.

By complete serendipity there is another piece of delivered mail which is my wife's Continental Airlines branded Visa bill. Her card gets air miles with every dollar spent. Included as part of the Visa bill is a "check" with an offer for one month interest-free. They hope you'll transfer another card balance there.

I get to thinking.

My wife and I call Visa to figure out what the limit is on a "transfer". In addition, they confirm that transferred monies will accrue air miles. The plan is coming together. The rep warns that after the first month it will be treated as a cash advance. I'm still amused.

I send a registered letter to Toyota Motor Credit noting the loan payoff, and include the transfer check from Visa. I send Visa a corresponding personal check for the loan amount.

We wait. Visa calls my wife, informs her "we rec'd a big check and we think you may have put the wrong check in the wrong envelope". My wife tells them to apply the check to the account since we have a transfer in progress. They do it.

A week and change later I get a letter from Toyota Motor Credit telling me how much they appreciate the final payment on the vehicle loan and that the title processing is in progress, and the title will arrive within two weeks.

Two weeks later I have the title in my grubby hands.

The summer before Katrina I was sitting with my wife in a very nice restaurant in New Orleans, having flown there for free using the air miles from my vehicle purchase.

 

[Tweak155]

Story copy/pasted from Fatwallet...was this you?

No not me. I actually did it for 2 different vehicles. I think I got $3500 on one and $2500 for the other (8mos apart or so). I got the first statement in the mail and went to pay it off, but the max I could pay online was $9,999.99. So I paid that and waited for the next statement and paid off the remaining balance that was under $9,999.99.

I probably could have called and paid it off, but I didn't want to deal with the hassle.

 

[AdamK47]

I daily drive a base model 2014 Chevy Spark.

Proudly.

 

[Ferzerp]

Story copy/pasted from Fatwallet...was this you?

That story is most likely completely made up. I have never, ever, ever seen a balance transfer offer that didn't have a (semi-hidden) $20 or 2% (whichever is greater) charge associated with them.

 

[repoman0]

That story is most likely completely made up. I have never, ever, ever seen a balance transfer offer that didn't have a (semi-hidden) $20 or 2% (whichever is greater) charge associated with them.

Real or completely made up, the guy sounds like a complete tool either way. No reason to act like that much of a jackass to the finance guy. Just pay off the loan when first payment is due and don't act like a smartass tool about it

Har har I trickd da bank LOL .. Yeah congrats, he has an IQ above 100 and can therefore take advantage of credit deals

 

[halik]

Story copy/pasted from Fatwallet...was this you?

That story doesn't add up, since CC balance transfers charge an upfront fee that's a percentage of the notional amount (usually ~3%)

 

[halik]

That story is most likely completely made up. I have never, ever, ever seen a balance transfer offer that didn't have a (semi-hidden) $20 or 2% (whichever is greater) charge associated with them.

D'oh beat me to it.

 

[repoman0]

He probably failed at the balance transfer scheme, canceled out the college grad credit by paying CC fees, realized he didn't get any points for balance transfers, and decided to write an internet tough guy story in which he looks like a "hero" who acts like a self-congratulating jabroni in order to feel better about himself for failing so hard

 

[jlee]

That story is most likely completely made up. I have never, ever, ever seen a balance transfer offer that didn't have a (semi-hidden) $20 or 2% (whichever is greater) charge associated with them.

Chase Slate is currently advertising 0% for 15 months and no fee on balance transfers for the first 60 days. Maybe it's buried in the fine print, but I didn't notice anything.

 

[A5]

Currently we have 1 car paid off, and the other will be done in March (0.9% APR, so not in a rush). After that, nothing besides taxes and maintenence for (hopefully) 5 years.

The purchase price of that car will probably be 25-30% of our AGI at the time.

 

[child of wonder]

That story is most likely completely made up. I have never, ever, ever seen a balance transfer offer that didn't have a (semi-hidden) $20 or 2% (whichever is greater) charge associated with them.

Over ten years ago I used to work in Citibank customer service and back then we used to see them all the time. Prime rate was around 9.5% back then though so they were hoping you wouldn't pay it off before the intro rates ended.

But you're right, we don't see them at all today.

 

[Ferzerp]

Chase Slate is currently advertising 0% for 15 months and no fee on balance transfers for the first 60 days. Maybe it's buried in the fine print, but I didn't notice anything.

So I see. That's the only one I have seen since '08 or so