My Cybertruck loan - $100k @ 5.94% interest rate / 72 months

[Pkizle]

Got approved just now for a $100k loan via Navy Federal at a 5.94% interest rate / 72 months. Just sharing so others can see the rate and breakdown. I plan to pay it off early to avoid the full $19k in interest charges.

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[Mini2nut]

Nice to hear you plan on paying off early. A nearly $1700 monthly payment is on the steep side and is well above what the average American can afford.

The $19k profit is why banks and CU's love to approve auto, truck, boat and RV loans.

 

[cyberme207]

I'm thinking of using my home equity line of credit as downpayment since the interest proportion of the payment is recalculated monthly. Whereas, on the autoloan, the percentage of payment applied to interest is a fixed decline over time.

 

[Outdoors]

Ahh the internet advice of financing. If it works for you. Go for it. Remember dollars don't stretch they tear. So does just about everything in life, if one bites off more than they can chew.

In old days it was a block of tobacco. The fellow (hopefully not a lady) would turn green. Today it's how much moolah can one borrow and still live a life.

 

[OUTLAW]

Yeah that’s a “rule of 78s “ loan where interest is loaded on the front end.
my suggestion is to find a simple interest loan which divides interest equally on each payment, getting more principal paid up front.

 

[LexusCyber]

Yeah that’s a “rule of 78s “ loan where interest is loaded on the front end.
my suggestion is to find a simple interest loan which divides interest equally on each payment, getting more principal paid up front.

where would you find such loans? I thought all car loans are interest front loaded... that is how banks make most of their money. they bet most people have trouble paying loan early and therefore they can make the most if not all of the profit on the loan.

 

[Pkizle]

Lmk
well if it’s depreciating from ~$150k then it’s fine. I plan to pay off quick, though

 

[Kuiper__Belt]

Got approved just now for a $100k loan via Navy Federal at a 5.94% interest rate / 72 months. Just sharing so others can see the rate and breakdown. I plan to pay it off early to avoid the full $19k in interest charges.

I'm looking into setting up an account with Navy Federal. But I'm not really sure if I can. My grandfather was in the Navy which makes me eligible but he died in the 90's and I don't know how to prove that he was. Any advice would be appreciated!

 

[DumpsterFire]

Thanks dad….

 

[Pkizle]

I'm looking into setting up an account with Navy Federal. But I'm not really sure if I can. My grandfather was in the Navy which makes me eligible but he died in the 90's and I don't know how to prove that he was. Any advice would be appreciated!

I’d just call and ask. They keep a database so should be really easy over the phone

 

[FarAway]

Yeah that’s a “rule of 78s “ loan where interest is loaded on the front end.
my suggestion is to find a simple interest loan which divides interest equally on each payment, getting more principal paid up front.

Are you sure that is a "rule of 78" loan?

I am not sure how one could tell just by looking at the promissory note as posted unless there was an early payoff penalty clause, or one could see the actual payment schedule with the monthly interest and principal broken out. This loan note states in the first line, "If you pay off early, you will not have to pay a penalty." Also, I thought "rule of 78" loans were illegal by Federal law (since 1992), on loans longer than 61 months.

 

[Pkizle]

Are you sure that is a "rule of 78" loan?

I am not sure how one could tell just by looking at the promissory note as posted unless there was an early payoff penalty clause, or one could see the actual payment schedule with the monthly interest and principal broken out. This loan note states in the first line, "If you pay off early, you will not have to pay a penalty." Also, I thought "rule of 78" loans were illegal by Federal law (since 1992), on loans longer than 61 months.

Yeah, I’m curious as well..

 

[OUTLAW]

OK I looked it up again and Navy Federal credit Union is simple interest. I must’ve been looking at another federal credit union so you’re in good shape you’ll pay off principal faster.

For the guy that posted about his grandfather in the Navy. I think they have a policy that the relative has to be alive. That was what I found out when I try to get a USAA insurance policy.

 

[Kuiper__Belt]

OK I looked it up again and Navy Federal credit Union is simple interest. I must’ve been looking at another federal credit union so you’re in good shape you’ll pay off principal faster.

For the guy that posted about his grandfather in the Navy. I think they have a policy that the relative has to be alive. That was what I found out when I try to get a USAA insurance policy.

Oh man thank you for that info. That stinks though. I’m going to call them tomorrow and find out if I can get a loan or not.

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