This is for a moderately equipped Dodge Challenger Scat Pack. Options are auto trans and driver convenience.
Year, Make, Model, and Trim: 2020 Dodge Challenger Scat Pack RWD
PenFed MSRP: $43,605
Actual MSRP: $43,380
Sales Price: $41,581 (4.2% pre-incentive)
Point of Sale Rebates: $6350 ($4850 Power Dollars $1000 PenFed TDM $500 Conquest)
Post Sale Rebates: $250 (Allstate Bonus Drive)
Taxes: $2,794
DMV fee: $596
Dealer fee: $389
Months: 24
Mileage: not to exceed 15K/yr
Monthly Payment: $334
Effective Drive-Off Amount: $2250 ($2500 DAS minus $250 Allstate Bonus)
APR: 2.99%
Residual: 70%
Final Payment: $30,833
Region: New Jersey
I am financing this with a balloon loan from Pentagon Federal. This means I am responsible for the residual value of the vehicle after the payment term expires. I’m taking on some risk, but the monthly payment is low, and as a 3rd vehicle to replace my C43, I won’t put very many miles on it. The market value of used Challenger Scat Packs is pretty outstanding and I believe it will outperform the forecast from PenFed.
What say you fellow hackers??? Been working on this for a while and think it’s pretty sweet.
I think I could sell it in 6 months and make money on it. Thanks for helping find a reasonable dealer!
Yes, manual, but I enjoy this in a weekend car. The problem w/ options is the PenFed balloon loan program does not properly factor options into the residual calculation. Once you start spending above base MSRP it goes out of whack, fast. In fact, I could get into a base Hellcat for less then an optioned Scat Pack.
Sorry didn’t mean to sound negative if I came across that way but this thread is going to get wacky quick lol. So the ballon is based on MSRP are they taking current market conditions into play? And are you required to buy the vehicle or cover the dealer in the event these cars resale come back to to earth?
No worries, balloon loans are not for everyone and are certainly more risky then a traditional lease. Your point is very valid.
Yes, the delta between MSRP and RV.
Present market conditions are captured by the bank in the 70% RV after the 24 months, however this value is fixed at the time of purchase and does not adjust.
I am required to buy the vehicle from the bank for $30,303 after 24 months. I can choose to move to traditional financing, such as a 72 month loan, I can opt for another balloon loan, I can sell the car and pay the bank back or I can trade the car in for my next car. I believe the car will be worth closer to $34K after 24 months so I suspect I will actually have positive equity.
It’s interesting and and as you said not for everyone or every car. But the scats I think will hold value even better than the Hellcats because they are more obtainable and practical.
I agree cash flows are low for the 24 months but won’t the total cash flows be the same if you put standard financing on it and sell in 24 months? (Actually a little less due to less interest)
Also if you get in an accident best case is it’s totaled.
I compared traditional financing from both Ally (72mo with a 2.80% APR) and PenFed (72mo with a 2.99% ARP). In both cases, with a $9000 down payment the monthly was about $440/mo.
Traditional: After 24 months I would have paid $19,560 and would owe around $19K
Balloon: After 24 months I would have paid $10,026 and would owe around $30K
If the vehicle sells for $34K after 24 months, with traditional, I would get $15K back so total cost around $5K. With balloon, I would get $4K back, so total cost around $6K, So… yes… slightly lower total cost of ownership with a traditional finance BUT much less cash outlay to get very close with balloon.
If you take the exercise one step further, and I can get $34K as a trade-in, the total cost of ownership is reduced another $2252 in tax credits – With the balloon loan that means I’ve paid only $3800 for 24 months ($156/mo effective).
Serious lack of inventory combined with crazy used market value and these dealers act like they are sitting on gold. It was not a fun experience to try and get below MSRP. I would say I got at least 20 quotes at MSRP and my worst quote was MSRP plus $1495. I could do a factory order and get 4% below invoice, but I would need to wait 12 weeks and would be subject to the prevailing rebates, residual value and market conditions at that time. At 4% below invoice I would save another $1000 and bring the payments down around $40/mo. The dealer just doesn’t have a ton of holdback in these things.
I was so desperate that I asked @ElectricEliminator to work his magic and 1.8% was the best he could do with his connections.
Am I calculating something wrong? That is 73% of the $41565 MSRP (72.9, actually).
BTW, I agree with the reasoning at the moment. 2018 Scat Packs with 20k’ish miles are trading at auction for ~$37k. Hopefully it stays that way for you.
I have been negotiating with the dealers as if this was a cash transaction. The dealer must be on PenFed’s approved dealer list, but every Dodge dealer I’ve inquired about so far has been on the approved list. The way it works is PenFed overnights funds in the form of a bank check made out to both the customer and the dealership. I am all approved but my check won’t show up until Monday.
For some reason PenFed calculates the MSRP of this build at $42,880. It seems they also charge a $300 purchase option fee. So the actual RV is $30,000 (~70% of $42,880) plus the $300 fee. Didn’t notice that fee before just now.
