Possible to finance with just a VIN

[Martin]

I've heard of a few people financing their Vipers while the car was still being built, and I'm curious to hear of any tips or tricks to getting that done. With rates where they are now, I don't mind making payments on the car even though I don't have possession of it yet. It's just about free money at these rates.

So, is it even possible in this day and age? Do they require you to take out a full insurance policy on the car even though it is still in the custody of CAAP and Prefix?

I figure there will be the usual 0.99% specials right around the holidays, and having a car in D1 status means I have plenty of time to wait for those specials to come around. Just want to make sure I'm not wasting my time waiting for the deals and then have the financing company (probably Pen Fed) tell me to go pound sand until the car is physically in my possession.

[bluesrt]

Dont think that will work due to paperwork ect. Dont think any dealer will stick there neck out and do that

[CarolinaViper]

I've heard of a few people financing their Vipers while the car was still being built, and I'm curious to hear of any tips or tricks to getting that done. With rates where they are now, I don't mind making payments on the car even though I don't have possession of it yet. It's just about free money at these rates.

So, is it even possible in this day and age? Do they require you to take out a full insurance policy on the car even though it is still in the custody of CAAP and Prefix?

I figure there will be the usual 0.99% specials right around the holidays, and having a car in D1 status means I have plenty of time to wait for those specials to come around. Just want to make sure I'm not wasting my time waiting for the deals and then have the financing company (probably Pen Fed) tell me to go pound sand until the car is physically in my possession.

Yes, Done it twice...No insurance until it you get ready to pick it up.

[dmann]

Where do you get rates that low?

[ViperPete]

A lender probably woudn't even know if the car was build yet or not anyway.

[Voice of Reason]

Just put the monthly payment in a savings account and turn the lump sum into a deposit when the car is picked up. Then pick whatever # months you want on the loan.

[EZ 2B Green]

Didn't work for me and the car was at the dealer. Back in the Gen IV days the cars would sometimes arrive before the MCO (Manufacturer's Certificate of Origin) was in hand at the dealer. Without the MCO the lender would not release the cash. I'm told that rarely do the MCO's lag behind these days.

[Policy Limits]

Just put the monthly payment in a savings account and turn the lump sum into a deposit when the car is picked up. Then pick whatever # months you want on the loan.

Pretty good advice, and from a treasurer

[Martin]

Just put the monthly payment in a savings account and turn the lump sum into a deposit when the car is picked up. Then pick whatever # months you want on the loan.

The default choice for paying off the car is to pay for it with cash on delivery, but with money being so cheap right now, I'm trying to look into options to lock in a low interest rate. Who knows how long today's good rates will last - by the time the car is delivered in March/April, we could be seeing 50 basis points higher rates. Also, as I mentioned, a lot of the credit unions run specials around the holiday times to move deals. Last year I was looking at some pretty incredible financing rates, and if the Fed doesn't jack us around in December, I have a feeling that the same rates might be available.

Just trying to be a bit creative in how to best leverage the cheap money that we're seeing right now. I've heard of it being done, but it doesn't seem like it's as straightforward as arranging financing on an in-stock vehicle. I figure a few people here have navigated this one already, and my ears are open to all advice on how to get it done, and which lenders are easiest to deal with.

[ViperSmith]

Assuming your credit is solid getting financing sorted st purchase time isn't an issue. I realize getting a rock solid rate may require something ahead of time but that's more what the lender will let you do

[Martin]

Assuming your credit is solid getting financing sorted st purchase time isn't an issue. I realize getting a rock solid rate may require something ahead of time but that's more what the lender will let you do

Very true. I think I'll do some calling around to see what various places will do. It would be really nice to lock in a rate around 1% (or a bit higher for a long-term loan), but maybe I'll have to just wait a while. There definitely was a time (it was around the time I bought my Gen II) where I knew of a few people who financed a car that was in the build process. But, that was 20 years ago, and things have changed since then...

Of course, if rates go up like mad, then I'm way better off just paying cash. I just hate to throw a big chunk of cash at a car when money is so cheap these days. Maybe we'll see another EU-exit that will drive rates down again.

[Mopar'er no car]

Call Milton bank. They will be able to answer your question. They are one of our sponsors and if anyone can make your Viper purchase happen it's John Jones!! He knows Vipers! Tell him the forum sent you!!

[ACRucrazy]

Good info

[NT-ACR]

Call Milton bank. They will be able to answer your question. They are one of our sponsors and if anyone can make your Viper purchase happen it's John Jones!! He knows Vipers! Tell him the forum sent you!!

Some members have had mixed results with Milton Bank. For instance, it's very likely that your local credit union could beat their rates.

[Voice of Reason]

Some members have had mixed results with Milton Bank. For instance, it's very likely that your local credit union could beat their rates.

Not to pile on a sponsor but I agree. I've had around 2% for both my 13 then 14 from my credit union and when I cross referenced Milton it was laughable how much higher their rates were. Granted this was 2+ years ago so maybe they are better now. But then it was a serious LOL.

OP - you've found 1% somewhere? And I don't mean 1.9x% but an actual 1%? I think we'd all be interested in hearing where.

[NT-ACR]

Not to pile on a sponsor but I agree. I've had around 2% for both my 13 then 14 from my credit union and when I cross referenced Milton it was laughable how much higher their rates were. Granted this was 2+ years ago so maybe they are better now. But then it was a serious LOL.

OP - you've found 1% somewhere? And I don't mean 1.9x% but an actual 1%? I think we'd all be interested in hearing where.

And yet I still get accused of never posting anything of value...

[Martin]

Not to pile on a sponsor but I agree. I've had around 2% for both my 13 then 14 from my credit union and when I cross referenced Milton it was laughable how much higher their rates were. Granted this was 2+ years ago so maybe they are better now. But then it was a serious LOL.

OP - you've found 1% somewhere? And I don't mean 1.9x% but an actual 1%? I think we'd all be interested in hearing where.

Right now, you can get 1.49% at Pen Fed, and they have a tradition of offering .99% right around the holidays. There are also a bunch of credit unions and online lenders out there that are advertising sub 1% rates. I got an email from Western Financial for a 0.74% three year rate - which seemed pretty good, but I didn't look into the terms and conditions much.

I just Googled "best auto loan rate" and saw a few sites that are posting what look to be good rates - not as good as they were six months ago, but still worth checking out. Who knows where rates will go in the next year - so I'm looking at options to try and get something locked in now.

[Bill Pemberton]

Banks will usually not hold a rate much longer than a month , and you can not buy a car without the MSO ( Manufacturer's Statement of Origin) - since the Bank or C/U will demand it to ensure their lien is on said. Not really much need to do something now , as it is highly unlikely the loan rate given will hold very long and if your credit is good there will probably be not much change.

[Vprbite]

Right now, you can get 1.49% at Pen Fed, and they have a tradition of offering .99% right around the holidays. There are also a bunch of credit unions and online lenders out there that are advertising sub 1% rates. I got an email from Western Financial for a 0.74% three year rate - which seemed pretty good, but I didn't look into the terms and conditions much.

I just Googled "best auto loan rate" and saw a few sites that are posting what look to be good rates - not as good as they were six months ago, but still worth checking out. Who knows where rates will go in the next year - so I'm looking at options to try and get something locked in now.


Penfed has been great with me and I got the 1.49 as well. Also no penalty for early payment. IIRC, they will hold your loan (amount and rate) for at least 30 days but it may be 90. I understand wanting to have it locked in just in case stuff goes crazy after the election. Call them up and ask them about financing on just a vin. I would say the idea of putting your monthly in an account and using it as a down payment is a pretty good idea though. Plus it's risk free. And I've never seen pen fed higher than 3.49%

[Bill Pemberton]

PenFed is not going to finance just on a Vin as the Dealership has to provide an MSO to them or prove that we have a title -- or their check to us will not clear. Frankly it is fraud and you and the Dealer would be financing something neither of you own. There are very few Banks , anymore, that have a prepayment penalty , but always good to ask.

[Vprbite]

Good point, Bill. I've never tried to finance just a vin but it makes sense. That is a big risk on their end to loan money on a car that for whatever reason could not get built. Being that it is the collateral for the loan.

I think the idea of the savings account is a good idea. And PenFed has beaten any other reputable bank I've seen in the past 6 years. As I said I never saw them higher than 3.49 in that time, so saving up the several grand in a high yield savings account might come in as the lowest net money out. Make for a nice big down payment, lower the principle significantly, even at a slightly higher rate it may be less money out, in total. It certainly isn't a bad idea.

OP, good luck and enjoy your new car when it comes. Whatever you do I hope it works out well for you.

[ClayR]

In Kansas, we can submit a Title Application form and secure funding before a vehicle arrives. Every State is different.

[Martin]

I'm thinking of opening a couple of different checking accounts with Pen Fed and stashing $50k in each of them. They are paying .5% interest on a checking account, so if I get enough money in those accounts and use them to pay the loan when the car arrives, that should provide a pretty good solution to the issue.

I certainly hope the rates don't go nuts in the near future - I've managed to refi everything at crazy low rates, but I sense the age of free money coming to an end soon. If the fed doesn't raise rates in December, I think we may be good till June - and then everything will work out fine. But, there's a lot of pressure to hike rates right after the elections. Would be a stupid move in some ways, but I can see the logic in doing it after whoever manages to get elected.

[Vprbite]

I'm thinking of opening a couple of different checking accounts with Pen Fed and stashing $50k in each of them. They are paying .5% interest on a checking account, so if I get enough money in those accounts and use them to pay the loan when the car arrives, that should provide a pretty good solution to the issue.

I certainly hope the rates don't go nuts in the near future - I've managed to refi everything at crazy low rates, but I sense the age of free money coming to an end soon. If the fed doesn't raise rates in December, I think we may be good till June - and then everything will work out fine. But, there's a lot of pressure to hike rates right after the elections. Would be a stupid move in some ways, but I can see the logic in doing it after whoever manages to get elected.

Cars are fairly safe loans for the bank cause it's easier to take the collateral back than say, a house. So I don't think cars would go sky high overnight. Even if it got to 5%, you could offset some of that by paying a little extra every month or by having money stashed. Yeah 5 is a lot higher than 1 but rates on bank loans are take a while to catch up to the fed rate. I wouldn't be overly worried.

However it works out, enjoy your new car.

[SSGNRDZ_28]

PenFed is great although Capital One 360 has 0.75% savings rates.

I'm not so sure rates are going to rise, especially to a point where it will make a big difference, they might even fall. It is tough to predict of course but I remember thinking rates were going to rise in 2013, 14, 15... Some are predicting a downturn in the economy and negative interest rates for the future.

[ACR Extreme]

PenFed is great although Capital One 360 has 0.75% savings rates.

I'm not so sure rates are going to rise, especially to a point where it will make a big difference, they might even fall. It is tough to predict of course but I remember thinking rates were going to rise in 2013, 14, 15... Some are predicting a downturn in the economy and negative interest rates for the future.

Just curious .75 what's the max amount my guess is not so much.

Borrowing on a VIN - c'mon.

Read the fine print of exiting early borrowing on a depreciating asset - why not take out a home equity if your borrowing and gain a deduction.

[Martin]

Just curious .75 what's the max amount my guess is not so much.

Borrowing on a VIN - c'mon.

Read the fine print of exiting early borrowing on a depreciating asset - why not take out a home equity if your borrowing and gain a deduction.

I'm not sure about the Cap One deal, but I think it has something to do with the new rules around money market accounts that can theoretically "break the buck". Money has flowed out of those recently for a number of reasons, and some banks are trying to lure people back into them. Again, I'm not totally sure about that because I haven't researched it, but it wouldn't surprise me.

I know borrowing on a VIN sounds strange - but I've heard of people doing it. So, I asked...

Home equity is another option. But, the appraisal process is a gigantic pain in the butt in my particular situation. Most appraisers come to my place and run away like their hair is on fire. Long story on that one - but I own a property that is quite unique, and if there aren't any comps, it's really hard to lend on it. Went through hell doing a refi on it (went from hard money loan to a 3.5% 30-year fixed - which made my life much easier in the long run but it was a full-time pain in the butt). Auto loan at 1.49% or whatever seems so much easier - and I'm the type that likes to lock things in and move on to other things that need attention.

[SSGNRDZ_28]

Have been a Capital One 360 customer for over 10 years, formerly ING Direct. The savings rates are simply always one of the highest available, have been for 10+ years. Have had mortgages through them as well. Very easy, very secure, no issues in my experience. The only downside I can think of is they are an online only bank, you have to tie your accounts to a "brick and mortar" bank. I closed all of my other savings accounts after opening an account with them.

[Martin]

The rise we're seeing in savings rates is one of the reasons I personally think it's smart to take out whatever low-rate loans now that can be had. Pretty soon, we'll most likely see insured savings rates climb, and I'd like to have the cash to take advantage of that (rather than plopping money into a depreciating asset). My gut tells me that this might be a once in a lifetime chance to easily make the system work for us, rather than the other way around.

To me, the stock market is way too risky to be playing with presently. Many will disagree with my strategies, but I'm almost completely out of the market now.

Ironically, the last time I completely bailed out of the market and went all-cash was in the '07/'08 timeframe, and the money I would have lost when things went south was the money I used to buy my '09 ACR.

In this situation, I tend to agree that giving up on the idea of a low-rate VIN-only loan is smart, and stuffing money into insured accounts that have decent yields is probably going to get the same result in the end.