They ask for the window sticker to establish MSRP for the purposes of LTV.
If you borrow over 100% the rates go up.
It’s not like the MRM ever matches the window sticker anyway.
I included my Jeep Wrangler addendum here – you can see the options list they accepted.
How long until you think they catch on that the options in the sticker doesn’t match what you are inputting? I guess you could claim that you have added some of them aftermarket. Or some of them could be “included” in the general spec (which would require them to read all the fine print on the sticker).
Also, if you turned the vehicle back into them, would they have an inspection process which would verify those options weren’t there?
They asked for window sticker for my TRX and I had no issues at all.
Are you referring to the options that lower the MRM?
I noticed americu is listed on hershey’s spreadsheet as requiring checks to be picked up in person. Is that true in all cases?
Not in my experience…However, that experience is based on balloon loan refinance(s), in which case, they have always deposited funds directly into my member share account, and then I order a wire transfer to get the money to where I need it to go. I’ve found with AmeriCu, service is very dependent on the loan officer, it really helps to get a recommendation, versus playing roulette with an online application.
No they overnighted both of my deals directly to the dealer
I was told by a LH member that AmeriCU requires checks to be picked up in person. If that is no longer the case I’ll remove it.
Second sheet update, ballon loan sheet is a WIP, but I have midterms next week and working on a side project so those take priority.
They charge $30 for it to be overnighted just fyi
They only charged me the cost of fedex which was $15 for 1st $24 for second one
AmeriCu has raised rates again. All balloon loan terms are now over 4%.
Thank you this is an awesome thread.
How does one compare two different balloon loans. Looking into the MACH-E and with a credit union the monthly is about 60 less than with Ford Options but the balloon payment is about 4K more. What’s one’s reasoning in picking on over the other?
I was able to find a local credit union offering the AFG program. Financed my wife’s 2023 Rubicon @ 3.9%. We went with the 5 year term as we plan to keep this one for awhile. Payment is about $30/mo less than the 36 month CCAP lease and we can claim the tax credit. Almost too good to be true. Thanks for all of the info in this thread!
Can you share the name of the credit union doing under 4% on balloon loans?
That is an amazing rate right now.
Does a balloon loan ever make sense for a used vehicle? Thinking of doing this for my USB 4Runner but not sure if it it’s a bad idea. I need to do some more research on how they work fully.
The same criteria used to evaluate if a balloon loan is a good fit for a new vehicle can be applied to a used vehicle, as long as it has lower mileage. In most cases, it’s harder with a used vehicle to find a favorable MRM, and the RV will be worse versus new, but in the right conditions it can make sense.
I just encourage everybody using a balloon loan with interest rates at 4% to mind the total interest.
It was Anoka Hennepin Credit Union, but I believe you have to live in the Minneapolis metro area. I found them by searching for “Drive4Less credit union”. It seems a number of credit unions have branded their AFG program as “Drive4Less”.
I just did some quick calculations for my wife’s current vehicle which has 14k miles on it, it’s barely driven.
Lease was up in October but extended in 6 months through USB. Buyout will be 31k with tax. Running the numbers through the calcs above using 36 months:
So essentially, that last payment due will be ~$24k. I have to either pay that, refinance it or sell it, is that right? So I have to try and figure out if I believe the vehicle will be worth that after 3 years to see if the risk is worth it?
You can sell/refinance it at any time during your term, perhaps before the final balloon payment. If you look at the amortization schedule within the second calculator, you can figure out the balance for any month. If do keep it to end of term, then yes the final payment will be around ~$24K
If you think the vehicle will be worth more then $24K in 3 years, the decision is easy. But even if the vehicle is worth less then ~$24K, it may still make sense, you need to compare the total cost of ownership (TCO) of the balloon loan (eg: $35,343) to your other financial options…
