A little off topic here:

Has anyone used a land rover/jaguar employee discount? If so, do they help a lot with your lease/finance rates? I am finding it very difficult to find one from friends & family, and even online, compared to the american cars I own :P

 

are you comparing this to a lease?

if you do a quick comparison and some of this has been highlighted

1. Lease on a base Ftype 70,000
a) standard 10,000 over 3 years
b) residual 66%???
c) 4,296 additional out of pocket + 700 monthly payments 843 monthly payment
d) interest rate ~2.4%

e) disposition / dealer fees $XXX

2) Penfed auto saver
a) standard 15,000 over 3 years
b) residual value 59%
c) monthly payment 794.07
d) interest rate 1.74%

e) no disposition fee

difference over 3 years is about 1700, should more than make up the tax in high tax states.


i think wehen you calculate the actual cost of ownership, the penfeld will come out cheapers - particularly the fact that you have a 12,000- 15,000 mile limit vs only 10,000 . I drive my current car about 11K a year and at .30cents a mile, that's an additional $900 i would be paying at the end of the lease.

 

I was only pointing out that if you intend to keep the car and want to finance the balloon payment interest rates may not be as favorable for a car loan which are almost free currently . I was thinking more along the lines of an R and New York State taxes. The no mileage limit of pensaver is attractive. It is an option to consider. If you intend to own and make a balloon payment, this is attractive also. Seems like in your model it makes sense vs a lease.

 

My Understanding is that with PenFed auto save, if your car is worth less than the balloon payment than you owe that money. Is that correct? They will not take the car back? You need to either buy it or sell/trade it yourself for at least the balloon payment?

 

Yes. It is really a form of loan.