USA buyers: Anyone else concerned with rising US interest rates?

[Hell4Leather]

While I'm still going to buy the car with even a larger downpayment, the rise in interest just sucks. I could be earning $$$ in an actual savings account for once. And

It is nice, but they somewhat make up for it with DMV doc fees. Delaware is currently 4.25% of the selling price or NADA book value (whichever is higher). So my Emira will cost +~$4200 in DMV fees (including registraiton and title fees).

How about the good ol dealer prep and destination, doc fees etc….

 

[Hell4Leather]

While I'm still going to buy the car with even a larger downpayment, the rise in interest just sucks. I could be earning $$$ in an actual savings account for once.

I’m more into generating interest on the street…… especially from the ladies

 

[lion shf]

With how long I've been waiting for this car, I've practically paid it off saving for it.

I hide my mod money in the gun cabinet, where do you hide yours?

 

[Hell4Leather]

I hide my mod money in the gun cabinet, where do you hide yours?

Apparently at the Lotus Dealership

 

[Silver Storm]

I agree completely. I personally have zero debt besides my current mortgage and paid cash for my daily driver. But I will tell you that my father worked in luxury car sales for decades and had many clients with extreme wealth. One example that comes to mind is an executive at a famous "campy" soup company. IIRC, the form his assistant submitted had something like $12m (or maybe it was $20m) written down for income. Turns out that was per month! And he still financed a new Lexus.

That guy financed because he probably could write off his car payments and make it tax deductible. Once you get into a certain wealth category (or tax bracket), you get tax deduction perks that most regular people don’t qualify for.

 

[Hell4Leather]

That guy financed because he probably could write off his car payments and make it tax deductible. Once you get into a certain wealth category (or tax bracket), you get tax deduction perks that most regular people don’t qualify for.

More likely he did the smart thing and took the dealer financing to get the spiff which allows for a deeper discount off the sales price of the car. Then he had 45 days to pay it in cash with no penalty. Doesn’t work for a car like Lotus where the price is on the sticker but a Lexus can probably get another $1500 or so off vs a 100% straight cash sale.

 

[Silver Storm]

Since I joined the bandwagon late, I’m not worried about higher interest rates (yet). Having said that, if interest rates do go double digits like they did in the 80s, then it wouldn’t make financial sense to buy anything, let alone a new car.

My game plan would be to skip the banks and dealer loans, and pay cash and finance the balance through my HELOC. My HELOC rate is at prime, and I can pay as little or as much as I want. I’m not forced to pay an exorbitant amount of interest, and I can pay off my new purchase faster.

 

[MPD]

I have been saving extra to buy the car in cash just in case rates went up. I don't like debt but when money was free for so long then I used it to save the cashola. If rates are around the 5% range then I might finance a chunk instead of paying the whole thing .... too many other things to worry about then financing .... like if the new new new dates will still be legit.

I hide my mod money in the gun cabinet, where do you hide yours?

in the safe in the hidden room. The visible safe keeps anyone from looking further

 

[Maurice R]

Purchase the car trough business and write it off as customer entertainment / appreciation. You can take them to the track. Then also write off tires and services

 

[Hell4Leather]

Purchase the car trough business and write it off as customer entertainment / appreciation. You can take them to the track. Then also write off tires and services

yea, that’s not how write offs work:

 

[Silver Storm]

Purchase the car trough business and write it off as customer entertainment / appreciation. You can take them to the track. Then also write off tires and services

Yes correct. But only if it is allowed by your tax laws. In Canada (where I am), you can only write off if you are in a specific line of business, which unfortunately does not apply to me. US tax laws are very generous in allowing vehicle write offs.

 

[Porter]

It is nice, but they somewhat make up for it with DMV doc fees. Delaware is currently 4.25% of the selling price or NADA book value (whichever is higher). So my Emira will cost +~$4200 in DMV fees (including registraiton and title fees).

Mine will cost 4.15% to Virginia in car sales tax at purchase, plus 4.57% to my county in personal property tax every single year for as long as I own the car. The county's calculation is based on the J.D. Power book value for the car, which on a rare item like a Lotus may hold value a long time.

 

[Cachaco131]

Mine will cost 4.15% to Virginia in car sales tax at purchase, plus 4.57% to my county in personal property tax every single year for as long as I own the car. The county's calculation is based on the J.D. Power book value for the car, which on a rare item like a Lotus may hold value a long time.

8pct + here in CA!

 

[VL3X]

Mine will cost 4.15% to Virginia in car sales tax at purchase, plus 4.57% to my county in personal property tax every single year for as long as I own the car. The county's calculation is based on the J.D. Power book value for the car, which on a rare item like a Lotus may hold value a long time.

Jeeze... 4.75% every year?! Now I see why people used to get PO boxes in DE to register their exotics.

 

[action_turtle]

Mine will cost 4.15% to Virginia in car sales tax at purchase, plus 4.57% to my county in personal property tax every single year for as long as I own the car. The county's calculation is based on the J.D. Power book value for the car, which on a rare item like a Lotus may hold value a long time.

Thats... well, disgusting imo. I get pissed off paying £500 a year road tax

 

[Hell4Leather]

Mine will cost 4.15% to Virginia in car sales tax at purchase, plus 4.57% to my county in personal property tax every single year for as long as I own the car. The county's calculation is based on the J.D. Power book value for the car, which on a rare item like a Lotus may hold value a long time.

Jeeze... 4.75% every year?! Now I see why people used to get PO boxes in DE to register their exotics.

Yup, there’s a Lotus blog where a guy registered his Europa by mail. No PO Box necessary. 100% legal

 

[Porter]

Yup, there’s a Lotus blog where a guy registered his Europa by mail. No PO Box necessary. 100% legal

Well, except for the insurance fraud. Insurance in the US is completely separate by state, and you have to have to attest to the garaging location when you initiate the policy. A Delaware registered car needs a Delaware insurance policy, and if the garaging location isn't in Delaware they likely won't issue the coverage.

 

[Porter]

Jeeze... 4.75% every year?! Now I see why people used to get PO boxes in DE to register their exotics.

If you think that's bad, you should see what we pay in real estate property tax. I think it will break $12k this year. And I know, there are places where it's far worse. But still, it's a wild level of expense in my opinion.

 

[Porter]

don’t think my car insurance ever asked about registration; pretty sure they’ll insure it if it’s registered or not. Talking about vehicles with no liens btw….

They definitely ask about garaging location. The insurance companies have separate legal entities per state, and they don't insure across state lines for regulatory reasons. Check (anonymously) with your insurer to make sure.

 

[Porter]

Regarding the Delaware thing... Here's the first page of the affidavit you need to sign to qualify to register a car in Delaware as a non-resident. Note their point #6 and follow-up #7.