I have a thought of getting SLK 320 but wondering if this year is a good time to finance a car. after all, the rate is down for couple of months and since APR for car is locked, do you think it's a good time to get SLK?<br>
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thanks
If interest rate is your only deciding factor... (more)
then it means one of two things. If whether rates are say 7% vs. 9% a year ago is the key factor for you, then you can either afford one without a question, or you are too close to the financial edge such that 1-2% would make such a difference in your decision.<br>
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Now if you meant to say financing versus leasing, then it gets to a multitude of factors which include how long you want the car, how much mileage, etc.<br>
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What are you really asking?<br>
I want to finance SLK (not lease) and I am shopping around for APR. Since Fed cuts rate, which means most of banks will also cut their rate for loan. What I am asking is whether I should start financing a car this year or 2002. I don't really need another car since I have a reliability car, but my current car has 160,000 miles already. I am sort of looking for back up car and I am ready to buy. <br>
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so all in all, should I buy this year or 2002 in terms of APR?
The bond market is pricing in a 50 basis point (.50%) rate cut fairly soon. Given the slow economy and the mess caused by the terror attack, it is likely the Fed will follow the market in the next month or two. So if you are budgeting a car loan, figure the payments at the curent rate, and those at a half point less, and see if it makes much of a difference. In truth, the difference is likely to be slight. You may get a better rate on a home equoty loan or line of credit. MB hasn't been subsidizing loans on slk's, I don't believe, but who knows what will happen if car sales go kaput and inventories start building up. So that may be an option, too. In any event, you probably won't lose anything by waiting a bit to finance.
Also, note that loan rates have not been going down point for point with fed cuts
As loan rates are a proxy for risk, and risk hasn't been going down at all, the loan rates are not coming down that fast recently. So you probably won't see a 50 pt. drop in auto rates. Same issue for home loans. <br>
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Bill is spot on that Home Equity loans may offer better rates b/c they're better collateralized and you can take the interest as a deduction...(see your tax advisor.)
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