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

[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.

[4everRS]

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]

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]

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]

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]

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]

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]

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]

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

[mrdave]

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]

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_source=Google&utm_medium=PPC&utm_term=navyfed%20org|b&utm_campaign=Brand

[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.

[kday]

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]

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]

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]

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]

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]

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?

[905084]

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?

Finally seems like people are getting to the point where they aren't willing to put their life on hold. Finally. And as for credit, banks won't lend anyway, so does it matter if your credit is good? I've got great credit, still could never get a loan for real estate, but I'm sure I could walk off any car lot with a 60k car.....wow this is messed up.

[ttboost]

I'm not ashamed to admit that I couldn't have bought this car with cash..mostly because we decided to build our garage with our cash...you know....REAL equity...regardless, I have no problem living on someone else's money ...especially at these ridiculously low rates...Proof in point, we just bought a brand new VW TDI Touareg for 0%...yep...nothing, nada, zilch. VW let us borrow $50k for nothing...for 5 years...probably pay it off in 3 or so, but still won't pay a penny in interest...

[905084]

Just be careful that you consider real estate to be "REAL" equity....not always true....believe me, I know. And of course VW lent you money at 0%, depreciation on the VW will still be way more than you spend on maintenance for the RS.

[QuattroRS]

Kinda harsh there eh

I have owned a RS6 for 5 years.

Regardless of my ability to pay for a 6000 dollar repair or not my RS6 has cost me 600 in repairs over the 5 years.

Financial institution's and risk management? How did MERS work out for everyone? There is your gold standard of risk management.

Cheers to you and your CTSV or the bomb AMG.


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.

[Jimmy Joe]

Pixie, I think you are right on your assesment. But it seems that you stepped on some toes. (not members of this forum, of course).