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I'm a business owner and run my finances pretty efficiently, but never took the time to have my company own this car. I'm thinking of changing that as I learn more about the benefits, but definitely am going to re-finance. I spent some time today on the phone with a credit union I like quite a bit and thought I'd pass along what they said as well as ask this community if anyone has seen better rates recently or has any ideas of how to better skin this cat.

I'll start by saying, that my theory on luxury cars is to buy them a few years old and make a down payment that is sufficient to ensure that if life turns south at some point and I want to fire sale my car in a bad economy, I could do it within the month and cover the loan payoff. I don't like owning cars without some debt on them for a number of reasons. I figure that as long as I can sell it to cover the loan, I may as well take the longest term possible on a new loan. My business has very high margins, so from an investment standpoint I really should just keep plugging all my cash into my business.

So, my current 2014 R8 V8 with about 40k miles is probably worth about 70k or more. I really don't know, but it has been well taken care of with no issues and has a 10 year platinum 100k warranty on it, so I do think it is a good example. I plan to keep the car for at least another 5 years and hopefully put 100k miles on it.

I currently owe about 60k on the loan at 3.99 and monthly payments of about 1,400. So, I am going to refinance and the rates quoted today were:

72 month loans:
Credit of 700 to 740 is at 4.99 and 4.74 for over 740. So the payment would be about 1k a month.

84 months:
Credit of 700 to 740 is at 5.74 and 5.49 at 740 or higher so the payment would be about 900 a month.

Does anyone have any thoughts and sorry for the long post.
 

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I just purchased a 2020 A8L. VW credit gave me 72 months at 0% interest. Maybe check with VW credit and see what they will do for you. Credit over 800.
 

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Hi JuddS,

Check with your bank about a line of credit and you can pay it off as quick as possible without penalties. I have a line of credit of prime plus 0.5% which may make financing a used vehicle more affordable. Gotta have amazing credit though, but something for you to look into.
 

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In my opinion credit unions are the way to go as they offer the best rates and a more personalized experience. From and equity standpoint if you aren’t “upside down”, then I’d opt for the longest term possible. Be sure to ask your credit union about any additional savings based on the loan to value and automatic payments as I was able to save 1% on interest on my R8 and 911 Turbo by meeting these milestones.
 

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Another vote for PenFed. I've used them for two of my cars in the last 8 years and they have been fantastic to work with. Great rates and very fast processing. I personally know 10+ people that have used them based on my recommendation and they have had the same experience.

- Travis
 
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