Any one encounter a credit union not willing to finance a 9 year old RS6?

**bobski** · November 19th, 2012, 20:08

Any one have a work around? I may have my car sold, but my potential buyer may have a credit union that will only go back 8 years or so. Hard to believe such a firm policy would exist. Any ideas?

Thanks for your thoughts.

**4everRS** · November 19th, 2012, 21:09

Not uncommon at all. Most have a 10 year provision. Not surprise to hear about an 8.

Answer: get a new financing company. Use a bank.

**bobski** · November 19th, 2012, 21:12

Thanks. I have never used a credit union, so there you go. Hopefully he can work it out as we have an agreement on price.

**ben916** · November 19th, 2012, 23:22

My CU took over the double digit interest rate that I had with Wells Fargo and dropped the interest rate in half (only due to age of the car).

**Chung** · November 19th, 2012, 23:47

Originally Posted by bobski

Any one have a work around? I may have my car sold, but my potential buyer may have a credit union that will only go back 8 years or so. Hard to believe such a firm policy would exist. Any ideas?

Thanks for your thoughts.

I had to shop around. I almost had to fund it myself. Eventually I found someone that would lend. The two things I ran into were age and mileage.

**vitalian** · November 20th, 2012, 00:29

I also had to shop around -- my bank wouldn't lend based on the age of the car, but a different bank hooked me up.

**voidopolis** · November 20th, 2012, 18:19

I'm not sure if PenFed has those restrictions to 03 but I was able to get a loan on a low mileage 2004 M3 last year. Anyone can join and they had excellent rates when I shopped the loan.

**kvicen** · November 27th, 2012, 23:30

I bought my RS6 a few months ago. I financed it through One Touch Credit Union in Tx. I got it financed for 1.99%. They were better than my regular Credit Union I use. One Touch goes by how many miles are on the car more than the year of the car. Hopefully this helps someone.

**kday** · November 27th, 2012, 23:31

Wow, 1.99% for a 9 year old car? That almost makes it seem dumb to pay cash.

**mrdave** · November 28th, 2012, 00:07

My CU recently gave me a 1.74% loan for my RS6 this spring. Regular rate was 1.99% but they were running a special that month.

**ttboost** · November 28th, 2012, 02:26

Yeah I used Navy Federal CU a couple years ago..It was 2.99% back then...I don't think they have any limits....Might cost you $20 bucks to open an account...

https://www.navyfederal.org/?utm_sou...campaign=Brand

**PixieVC** · December 1st, 2012, 15:42

I'm amazed anyone is financing an RS6 without requiring a full powertrain warranty. It's a failure of the finance institution's risk management practices - why would they write a loan that would seem to me to be set up to default? Given that most people who would need a loan on an RS6 probably can't easily cough the $6000+ when their tranny inevitably grenades. And what then? Car payments on a cool looking gargoyle for your driveway until you come up with the funds? What you gonna drive in the interim? Oy vei.

**kday** · December 1st, 2012, 18:12

It's probably not correct to assume that people who finance cars do so because they could not afford them otherwise. Personally I've never done so but I know plenty of well off people who finance or lease cars they could purchase outright. I would have considered a loan at 1.99% if I was aware of the possibility... That's cheap money.

**mrdave** · December 1st, 2012, 20:46

Originally Posted by PixieVC

Given that most people who would need a loan on an RS6 probably can't easily cough the $6000+ when their tranny inevitably grenades.

I'm curious as to how you came to this conclusion.

Why on earth would I shell out $20-$30k or more in cash when I can get a loan for less than 2%?

**4everRS** · December 1st, 2012, 22:36

Sorry Pixie. You're incorrect. I purchased my RS6 using a loan. At the time, the rate was at 2.39%. I had the money to pay cash for it, however, I would have had to sell some investments to do so. I rarely leave more than 6-8k in cash. It gets invested. Now, the investments I owned (many I still do) have appreciated 70 to 95% since then.

In economics we call this opportunity cost. If that interest rate would have been 15% I would have undoubtedly sold investments rather than loan at that rate.

Of course I didn't know exactly if or how good the investments would do, but 2.39% is pretty easy to beat. And I still have it available in case something unforeseen comes up.

**PixieVC** · December 1st, 2012, 23:38

I'm not wrong at all.

Note what I said... "Anyone who would NEED a loan". You're both in a position to pay cash for the car without the loan...

**905084** · December 2nd, 2012, 02:29

Originally Posted by PixieVC

I'm amazed anyone is financing an RS6 without requiring a full powertrain warranty. It's a failure of the finance institution's risk management practices - why would they write a loan that would seem to me to be set up to default? Given that most people who would need a loan on an RS6 probably can't easily cough the $6000+ when their tranny inevitably grenades. And what then? Car payments on a cool looking gargoyle for your driveway until you come up with the funds? What you gonna drive in the interim? Oy vei.

+1 It's like a real estate loan without PMI.

**ttboost** · December 2nd, 2012, 13:03

I think a lot of the burden is on the individual too..why would someone buy a rare, "one-off" car, that you KNOW would be ridiculous to maintain...if you couldn't afford it?... unless you really don't care about your credit...In which case, the risk is BACK on the lender...but not everyone in this economy is liquid, and most are also not willing to put life on hold, especially for a stupid opportunity to own one of these stupid cars......wait.....what?

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