First Brand New Car

[jazz4cash]

Our oldest daughter bought her first car today. Even though I have an employee discount, I suggested she buy used. The late model used cars she found were not much cheaper than brand new with our discount and the rebates, so she bought a new Chevy Malibu. GM is wrapping up thier "Presidents Day" promotion, but I was still surprised how busy they were. Her salesman was working three deals at the same time...all Malibus. Looks like she'll get 4.05% for 60 months at her credit union. Always seems odd to me that car loans cost less than mortgages.

I also noticed they have a 5% /5yr CD with only $500 min, so I guess I'll be joining her credit union.

 

[Dawg52]

Our oldest daughter bought her first car today. Even though I have an employee discount, I suggested she buy used. The late model used cars she found were not much cheaper than brand new with our discount and the rebates, so she bought a new Chevy Malibu. GM is wrapping up thier "Presidents Day" promotion, but I was still surprised how busy they were. Her salesman was working three deals at the same time...all Malibus. Looks like she'll get 4.05% for 60 months at her credit union. Always seems odd to me that car loans cost less than mortgages.

I also noticed they have a 5% /5yr CD with only $500 min, so I guess I'll be joining her credit union.

Yeah, good rate. Wish I could afford a new Malibu. I could have afforded a couple of dozen 18 months ago.

 

[Texarkandy]

..... Looks like she'll get 4.05% for 60 months at her credit union. Always seems odd to me that car loans cost less than mortgages.

I also noticed they have a 5% /5yr CD with only $500 min, so I guess I'll be joining her credit union.

This credit union is borrowing money at 5% for a 5 year term and loaning it back out at 4.05% for a 5 year term?

Hmmmmmm.

 

[CCdaCE]

They must be making it up on volume.

-CC

 

[RoccoPacco]

I also noticed they have a 5% /5yr CD with only $500 min, so I guess I'll be joining her credit union.

Can you share which Credit Union this is at? Thanks in advance.

 

[jazz4cash]

Sorry....shoulda put that in before........

It's called FedChoice. I know they are open to at least some Federal Gov't employees, but I don't know all the eligibility rules.
www.fedchoice.org

 

[Leonidas]

Wow - they're giving 10% apy for savings accounts good for one year. Plus they've secured their own insurance and have doubled what the FDIC insures up to $500,000.

Interesting.

 

[jazz4cash]

Wow - they're giving 10% apy for savings accounts good for one year. Plus they've secured their own insurance and have doubled what the FDIC insures up to $500,000.

Interesting.

Uh...I think it's 10% on the 1st $500 only......IOW, a bonus of approx $50

 

[OAG]

That web-site just does not look right, first thing they ask for is your SSN and Last Name. Anyone applied recently except OP's daughter? Wonder how a "NCUA" member can "double" the insurance and who stands behind the "extra" $250K (which after 12/31/09 will be an extra $400K) - 22,000 members - pretty small club. Clicked on their "excess insurance" link brings up a "page not found" - wonder why?

 

[jazz4cash]

Some background on Fedchoice...........
Corridor Inc. - Corridor Finance & Banking: Credit Unions target new customers

 

[OAG]

Some background on Fedchoice...........
Corridor Inc. - Corridor Finance & Banking: Credit Unions target new customers

Pretty old article (2 years). Here is what I would look at if I was really interested in putting money in this CU: http://reports.ncua.gov/data/cureports/index.cfm

 

[jazz4cash]

The link did not work. I checked NCUA and looked at something called a 5300 report, but I didn't know what I was looking at. When I googled the artical, I remembered they changed thier name a couple of years ago. They expanded thier focus from IRS employees to all local federal employees. I am pretty comfortable with putting money in there since I don't have any significant money to deposit anyway....maybe just add a tad to the CD ladder. Daughter's loan was approved and my membership app is pending so we'll see how they perform.
National Credit Union Administration - Credit Union Queries

 

[OAG]

The link did not work. National Credit Union Administration - Credit Union Queries

Sorry about that; I tried it before I left the post but notice this morning it says to start from the main search page (which you have posted).

 

[riskadverse]

I was 41 before I felt I could afford to buy a new car. I had owned 10 used cars over the years from age 16 to 41. If I had to do it over, I would do the same thing again.

 

[Bimmerbill]

A few years ago I was looking for a used Honda Pilot. I found I could get a new one cheaper than used. Insurance and registration costs are higher of course. Got a left over 2006 when the 2007s were out at invoice -$3000 "Hidden" rebate.

 

[jambo101]

At 60 i just paid cash for my first new car an 08 Toyota Yaris,suppose i could have bought new cars in the past but never liked the idea of making payments and thousands extra in interest on an ever depreciating commodity,so i only ever bought what i could afford which was a lot of $1000 to $5000 beaters.

 

[Bimmerbill]

so i only ever bought what i could afford which was a lot of $1000 to $5000 beaters.

I wish I did that. I should go back and add up all the wasted money. But I'm sure I'd cry.

Trying to break the cycle now. 2 paid off cars, one with $9K left.

Now if I can only avoid car fever...