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I thought this might be of int

I thought this might be of interest since I took the time to write it up........

Quote:
I think I am paying way too much.....7.25 % interest on a five year auto loan.....where can i find better rates ?
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I'll make a lonnnnnng story short!

When I recently purchased my 87 TR I tried to do a home equity.......but made the mistake of telling the mortgage co. what I was up to...........NOT!

Next was my local bank, who gave me an application that they could plug into many lending options they could provide.

Well they needed a copy of the title and lien release from the current owner.
I got the copies faxed to me by the seller and noticed that he had financed thru an exotic specific lender in MA.. So for the hell of it I called them and they sent me a 1/2 page app. and 15 minutes later they called and said your approved at 7.79%. Not bad...............

Well I took the title and lien release to my local bank and told them that in fact the previous lein holder had offered to finance for 7.29% (felt a .50% decrease was in order! LOL) Banker said see what I can do and would contact me within 24 hours............
Well he did...............

Home equity at 6.2% no problem, but application fee/appraisal/etc.
Car loan, 11% because it didn't fit into their "box" ...............BUT....

He says ,"Hey Kerry don't you have a few CD's here?"..........Yes I do!
Well he says, "I'll lend you the amount you want, secured by one of your CD's, at 1% above the interest rate we are paying you on your CD."!!!!!

So to sum this up....I financed my TR for 1%, still have liquidity of my CD (which is still acquiring interest, compounded monthly) as it is payed down, no lien on the vehicle, and basicly a great rate. I was informed by my banker this is a common practice, that if you ask they tell, otherwise it's NOT the "moneymaker" they want, but are required to offer if it is brought up.

So needless to say this is an option I will use from here on out........great rates/liquidity/no questions asked/I set the terms (ie. length/payment schedule/insurance/NO pre-payment penalty/NO lien)!!!!!!

Bottom line I earn (for sake of demonstrating) $80 a month interest and pay $100 a month interest on the loan.......ie. $20 dollars a month interest on the "car" loan! And the CD interest earnings goes UP each month, and the loan interest goes DOWN each month...............

Kerry
 
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