# 72 mos at 1.9%



## thecommish16 (Oct 16, 2006)

I noticed that the GM site is showing a 1.9 for 72 months on GTO until September 2nd. Obviously I wouldn't let it go to 72 months, but I love the low payments especailly with some money down. Opinions? Anyone done this option?


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## DLGII (Aug 9, 2007)

I bought mine back in the end of April 07 when it was only 0% for 60 Mo. If you check out the GM Buy Power site, it shows all of the current sales in your area. The best is 0%. Most dealers want to get rid of the cars because they have been sitting on the lott for a long time like mine had been. I got a great deal and the 0%. You have to pay for what you want, bottom line, just know what you want to pay before you go in.


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## thecommish16 (Oct 16, 2006)

what did you pay total for the car? monthly?

I did run it on the GMbuypower site, they showed the 0% for 60, and 1/9% for 72


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## BobG (Dec 20, 2006)

thecommish16 said:


> ...Opinions? ...


The average monthly car payment in this country is around $450. If you took that car payment and invested it in good mutual funds from age 25 to age 65 (40 yrs), you would have about $5.1 Million for retirement ... I hope you like the car .... Don't be stupid like I was in my 20's ... I fell into the "you're always going to have a car payment, you might as well drive something nice" trap ... I'm paying for it now trying to catch up my retirement savings, so you won't see me giving you a shopping cart at Wally World when I'm a REALLY old fart. 

When I think about how I wasted my re-enlistment bonuses, I can only shake my head ... I first re-enlisted in 1980, and got a 15K bonus for the re-up. Wife and I spent 5 of the bonus on furniture (I still have the dining room set) and the rest on whatever .... we had TALKED about putting 2K in the stock market in a local communications company (Groton , CT ...) called Microwave Communications, Incorporated. I think it was about 8 or 9 bucks a share back then ...(smack my head and say "I could have had a V8 ...) ...

don't do stupid stuff. do millionaire stuff ... don't take on the car payment ...

That's my OPINION, and I'm sticking to it ....


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## thecommish16 (Oct 16, 2006)

that is one of the best posts ive read on any forum EVER...LOL WOW!!!!

That was truly unique! Obviously people will agree or disagree, but great post. I haven't had a car payment in 7 years, I pay cars off as quickly as possible, took only 2 to pay off the Camaro.

You make an awesome point!!!! What would you suggest buying for a car?


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## fiddler_red (May 9, 2007)

It's as simple as this: How much do you love driving? Do payments fit your budget? I could spend my whole young life saving every spare nickel for a ripe old age where I have millions, but am physically unable to enjoy the things I could when I was younger! You only go around once. Enjoy what you can afford, save a nest egg, but not every scrap of chicken feed!!


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## GTO JUDGE (May 14, 2005)

thecommish16 said:


> I noticed that the GM site is showing a 1.9 for 72 months on GTO until September 2nd. Obviously I wouldn't let it go to 72 months, but I love the low payments especailly with some money down. Opinions? Anyone done this option?


*Taking the car payment out for 72 months for a lower interest rate and paying the loan down is a good idea, IMO. It gives you the flexibility of a lower required monthly payment and will allow you to pay extra on the loan, say paying it off in 5 yrs or so. If there are months you cannot send in extra you still won't be locked into a much higher monthly payment. Once you get used to paying the extra and stay disciplined on it, you'll get the same results as taking a higher interest rate at a higher monthly payment, for a lot less interest. 

My son is on this option although the interest rate is not as low as 1.9. He however has not started sending in extra...I have to have a talk with him.....*


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## thecommish16 (Oct 16, 2006)

well 1.9 for 72 is on the GMbuypower website for GTO when I ran the numbers...the question is is that better than 0% for 60 mos? or 1.9 for 72 mos? I like the LOWEST number possible, and then send in double or more whenever possible. That's how I did it last time, I did 60 mos but knocked it out in 24, howevr it was only a 23k car.


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## thecommish16 (Oct 16, 2006)

I'm really trying to talk these guys down...I want this thing for 25-26k plus ttl....It's 2 years old, it's been on a lot, the depreciation hit off the lot is tremendous. I want a deal, and I'm going to see who wants to sell a car. If not I'm gonna pick up an Acura TL-S.


Any bargaining advice? I plan to go back to the dealers and say...

26,100, deal or no deal...LOL


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## BobG (Dec 20, 2006)

thecommish16 said:


> that is one of the best posts ive read on any forum EVER...LOL WOW!!!!
> 
> That was truly unique! Obviously people will agree or disagree, but great post. I haven't had a car payment in 7 years, I pay cars off as quickly as possible, took only 2 to pay off the Camaro.
> 
> You make an awesome point!!!! What would you suggest buying for a car?


What you can pay cash for. take the value of your present car as your base. set aside what you "would have had as a car payment" until you have enough to buy the 1 to 2 yr old car you want. Whatever car it is, its value shouldn't be more than half your annual income. 

Point to ponder ... The average millionaire in this country is first generation money, and drives a 2 to 3 yr old car. 

I'm not saying you shouldn't have a nice car. I'm saying that pleasure delayed is pleasure gained, and also something called maturity. I don't plan on driving beaters all my life. I DO plan on enjoying my retirement, and plan to retire BEFORE I'm 65, so I CAN enjoy those things. from my standpoint, if you have to buy a car on time, you can't afford it. my other car is an 89 F150 with 93K miles on it. I don't plan on having it forever. but it's still serviceable and fits my needs for now. When I'm ready to get rid of it, I'll have the cash saved up to buy the next truck outright (again).

If you MUST buy this car (read "I want it now") plan on paying it off over 18 months. If you can't do that, you can't afford the car. 

my two cents.


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## fergyflyer (Apr 18, 2005)

BobG said:


> The average monthly car payment in this country is around $450. If you took that car payment and invested it in good mutual funds from age 25 to age 65 (40 yrs), you would have about $5.1 Million for retirement ... I hope you like the car .... Don't be stupid like I was in my 20's ... I fell into the "you're always going to have a car payment, you might as well drive something nice" trap ... I'm paying for it now trying to catch up my retirement savings, so you won't see me giving you a shopping cart at Wally World when I'm a REALLY old fart.
> 
> When I think about how I wasted my re-enlistment bonuses, I can only shake my head ... I first re-enlisted in 1980, and got a 15K bonus for the re-up. Wife and I spent 5 of the bonus on furniture (I still have the dining room set) and the rest on whatever .... we had TALKED about putting 2K in the stock market in a local communications company (Groton , CT ...) called Microwave Communications, Incorporated. I think it was about 8 or 9 bucks a share back then ...(smack my head and say "I could have had a V8 ...) ...
> 
> ...


I agree and disagree. 

The millionaire would take the 1.9% interest, or the 0% interest and finance as much as he could. He would then take the money he was going to spend on the car and invest it and earn more than 1.9%. My brother just bought a car with 0%. He traded in a Toyota Avalon that was worth $9,000 and got $1400 off on the Impala he bought. He also had around 3200 in GM card earning that he got to use since his card is a GM family card with no limit on rebates. The sticker on the Impala was 27,800. He financed 27,800. He invested the check that he got from the dealer and it is earning interest for him. 5 years from now when the Impala is paid off he will have 20,000 in the investment account and a car worth $5,000 towards his next car.


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## lotaguts (Jan 17, 2006)

Can people state roughly there monthly payment I have always wanted to know how much of a bad deal I got. :confused


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## BobG (Dec 20, 2006)

fergyflyer said:


> I agree and disagree.
> 
> The millionaire would take the 1.9% interest, or the 0% interest and finance as much as he could. He would then take the money he was going to spend on the car and invest it and earn more than 1.9%. My brother just bought a car with 0%. He traded in a Toyota Avalon that was worth $9,000 and got $1400 off on the Impala he bought. He also had around 3200 in GM card earning that he got to use since his card is a GM family card with no limit on rebates. The sticker on the Impala was 27,800. He financed 27,800. He invested the check that he got from the dealer and it is earning interest for him. 5 years from now when the Impala is paid off he will have 20,000 in the investment account and a car worth $5,000 towards his next car.


Question .... Is your brother a millionaire?


The average millionaire owns a 2 or 3 yr old PAID FOR car and has a relatively simple investment strategy. They don't try and beat the banks at their own game.

What your brother failed to take into account is the risk factor. Anytime you're performing a detailed financial investment analysis, there needs to be accounting for risk, otherwise your analysis is flawed. Leveraging a depreciating asset to invest money elsewhere is not sound advice. 

Let me ask it this way ... If you were debt free, would you take out a 27K loan using your car as collateral and invest that money in the stock market?

his investment analysis assumes all goes well, as 5 yrs is the borderline for short term (parking) versus long term investing. Where will he be if the market takes a 3, 4 or 5 yr hit? that's part of the risk analysis.

I'll stand by my points. I don't know if I've convinced you or not. if not, I guess we'll agree to disagree, as this is a performance car forum and not a financial investment strategy roundtable. I will leave you with one thought though ... Do what you can to get out of debt and stay out of debt. Your income is your most important wealth building tool, and if you sign it all over to the banks before you start, you are already behind (been there, done that) ... If, after 5 yrs, you don't like being debt free, and you don't feel that it's working for you, you can always go back out and get a credit card and a car note in a heartbeat ...


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## thecommish16 (Oct 16, 2006)

Quite the debate this is!!

I think Fergflyer made good points...but so does Bob. The GTO is offered with 0% for 60 and 1.9 for 72...therefore you can buy the car without sinking any money in up front, but the payments are bigger. The problem with that is that every month you are forced into a large payment.

I think buying a 2-3 year old car is a good idea...but at the same time that car needs repairs updates tires, etc and it's out of warranty, and there's always that "was this in a wreck and someone hid it" thought...or was this GTO driven on drag strips every weekend for the last 2 years...It's the not knowing to save a few grand. 

Now as for debt, I agree that credit card debt is unacceptable. I won't allow myself to delve into the slightest debt because the 20% interest is outrageous and the number will get higher and higher as you pay, or don't pay much of it off. 

Is a car note bad debt? Sure...by definition any debt that you won't make money on or will depreciate is bad debt (much like real estate is considered good debt because of the benefits), but it's a car, and it's something that will in the end hold some value depending on when you sell it. It's also neccessary in today's world, and I struggle to find good cars under 20k bucks. In essence, the GTO is an 7500 dollar "waste" above a car that's probably the same quality without 18 inch wheels and 400 horses. But....

How many other items that you own will you use every single day?? 

I think we've seen some awesome points...and I think there's always the arguement about investing your money, and that's smart, but is 27k on a GTO that you'll probably drive for 8-10 years of your life a bad buy? What about people who buy Z06? Or the Vipers? Or the BMW M6 for 110 grand and are making payments every month on them..I think it's a lot of perspective. When you are 75 years old , I'm not sure you'll say "darn...wish I didn't drive that 400hp sports car for those 10 years of my life..."


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## BobG (Dec 20, 2006)

thecommish16 said:


> Quite the debate this is!!
> ...What about people who buy Z06? Or the Vipers? Or the BMW M6 for 110 grand and are making payments every month on them..I think it's a lot of perspective. When you are 75 years old , I'm not sure you'll say "*darn...wish I didn't drive that 400hp sports car for those 10 years of my life..."*


Well, that depends on whether you're trying to decide how to cook your Alpo, or whether you want to go to Ruth's Chris Steakhouse or the local high end bistro ...

also depends on whether you really intend to keep the goat for 10 yrs. I personally have intended to keep each new car I bought till the wheels fell off .. haven't done that yet ... My record has been actually quite miserable for actually KEEPING a vehicle, till I decided to never make another car payment ... and MEANT it ....

[SOAPBOX]
As for the guys making payments on that 110K Bimmer, etc, they're normal people. My problem with normal is that normal stinks... normal is broke ... lots of nice STUFF but too much month at the end of the money. My sweetie and I woke up a few years back after doing the taxes, and we both said ... "We made THAT MUCH last year ???? what do we have to show for it???? NADA ... ZIP ... ZILCH" We decided then and there ... NO MORE...
We cut up our credit cards, sold our NICE cars (I had a 2k2 Nissan Altima 3.5 SE 5spd, she had a Mazda Millenia ...) and bought a beater truck for 2300 Cash (89 F150). We set a tight budget, paid off a total of about 98K of various debt (including the cars) and haven't looked back. We refinanced our home on a 15 yr fixed note (from a 30 yr note)...We are on track to have our house paid for in another 6 yrs. This home will be paid for *4 YEARS *before the very first house I bought would have been paid for...

We built up a rainy day fund, and guess what? It rained. HARD. Last July we got a call to go visit my Brother on the west coast as he was dying of cancer ... We booked a flight and a hotel and a rental car for a week and paid cash for it all (used a debit card for the rental). This was two weeks before our scheduled Alaskan cruise (which we had saved for and paid cash for). We spent time with him and his family, went home, went on our cruise, and rented a car when we got back from the cruise and drove down to spend one last weekend with him. it was the best decision we had made to that point. He passed away while we were on our flight back to home. My point for this paragraph is that we booked all this stuff without worrying about how we would pay for it, because we weren't financing it. It was a no brainer, as far as I was concerned, to extend the cruise vacation for that weekend and rent a car. Were I putting that on credit cards like normal americans, I'd probably have maxxed out the card on the previous "emergency" of going out to see him for that week, and wouldn't have had any way to pay for the extra weekend. You know what? When I'm 75, I'll look back and say .... "I'm glad I spent that time with my brother..."

In November, my mom came down to spend some time with us ... she passed away suddenly while here, just after Thanksgiving. We were able to pay for our trip back home to the memorial service and not have to worry about where the money was coming from. while there, we were able to help out my sisters who were a bit more strapped for cash, and we didn't have to worry about whether or not we could afford it. 

In February, our 11 yr old dog was diagnosed with an insulinoma ... pancreatic cancer. we were able to pay for his operation... he's still with us, and all the cancer was removed. It wasn't cheap. If we didn't have the money available, we would have had to just had him put down...

BTW ... My brother's request to me was to buy his goat and keep it in the family. I did. didn't have to get a loan.

bottom line ... I refuse to buy stuff I may or may not want with money I don't have, to impress people I either don't like or don't know, or both.

Our neighbors made fun of us (jokingly, I hope) when we took them out to dinner for watching our animals while we were gone all that time ... He said "are you going to pull out a tattered old envelope and pull cash out of that thing to pay for this meal?" I laughed when he said it, but when the waitress brought the bill, I pulled out a tattered old envelope, pulled the appropriate money out of it, and paid the bill ... I looked at them as I put the envelope away, and they just kinda giggled and shook their heads ... Yep, they're making fun of me, I MUST be on the right track... We'll invite them to the Mortgage Burning Party... [/SOAPBOX]


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## thecommish16 (Oct 16, 2006)

I can't say you don't make valid points, and I can't say I don't agree with many of them and feel the same way. However, this is a pretty cool car for a decent price considering the rebates and incentives. I'm going to head to contact a few more dealers and see what the prices look like..hopefully I'll find one that is ready to move a GTO for a low price.


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## thecommish16 (Oct 16, 2006)

Well im trying the "hows 28k at 0%" today...see how it works


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## rcu316 (Jan 28, 2007)

BobG said:


> this is a performance car forum and not a financial investment strategy roundtable.


Could have fooled me, I would have sworn you were really Dave Ramsey!


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## BobG (Dec 20, 2006)

rcu316 said:


> Could have fooled me, I would have sworn you were really Dave Ramsey!




Well, I AM better than I deserve


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## nottheweakwilled (Apr 22, 2007)

Bob, you're right. I too have a car payment I some days regret. But i am a car junkie and there is no rational thought when it comes to my cars. And guitars. And home theatre equipment.



I'm sure some of you feel this way too.


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## idareu (Nov 20, 2004)

By not giving Dave Ramsey any credit for all of the quotes by him that you are using you are risking a large law suit by the guy who wants to win with money!


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## burnz (Jul 26, 2006)

enjoy life, we all can die like that ( snap) just have to say to your self, do you work hard enough to deserve such of a reward. I bust my hump all day everyday and if you don't reward your self then your just working to stay alive, not to live life. my bosses wife has been into saving for the future so long she's forgeting to live, even the guy that takes care of her retirement told her that she can stop saving and they work on a % BUY THE CAR AND ENJOY. that my 2.50


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## b_a_betterperson (Feb 16, 2005)

When buying a car, you need to look at three things:

1. Price of the car
2. Cost of money
3. Value of your trade

As far as what to spend, you're only supposed to buy what you can afford. Therefore, if you don't have the cash in hand, you can't afford it. Right?

Now, if you can go into your friendly local Pontiac store and scratch a check for your shiny new GTO -- I'd probably go the 0% for 60 months route. Why? All of your payment is going toward the principal of the loan. Sure, 1.9% is dirt cheap -- but it does add up over 6 years.

Whatever you do, don't get into the monthly payments game. Credit is the devil.


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## Tacmedic (Feb 24, 2006)

BobG said:


> Well, I AM better than I deserve


Me too. The house is paid off and I am driving 220 miles tomorrow to pay cash for a used GTO. I paid $7,000 for my '96 SHO seven years ago and now have 180,000 miles on it. Hell, if it burns up in the driveway before I can sell it, I got my money's worth out of it. I have been saving for several years for the GTO and still have my retirement fund and emergency funds going well.

Dave won't sue him for passing the message. He wants more people to hear it. It's really just common sense stuff.


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## thecommish16 (Oct 16, 2006)

Yeah 60 mos looks like the way to go. 

However the dealer called with a used 2005 C6 Vette for a decent price...certified and all. Checking that out too for the heck of it.


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## BobG (Dec 20, 2006)

idareu said:


> By not giving Dave Ramsey any credit for all of the quotes by him that you are using you are risking a large law suit by the guy who wants to win with money!


Nahh, Like Tacmedic said, he just wants the word to get out ... pass the message and drink the cool-aid 

Tacmedic, great job ... you're killin' it (another quote)


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