Official: U.S. 2023 Nissan Z priced at $39,990 Sport, $49,990 Performance, $52,900 Proto Spec (Now Including Exterior/Interior Color Combos)

[Evolution]

Ok I'm going to be honest here, I don't know much about loans since I rarely use them but..... I actually looked in to taking out a loan on my house since I can and the results were bad. Interest rate was ok but I forget what kind of loan it was called, but it was one where you pay most of the interest first. Not like a car payment where interest is the same every month. So if you have a 15 year loan, the first couple years you barely pay off the principle. Not sure if that's the kind of loan you 2 are talking about. If it is, you can see why that's bad, especially if you plan on paying it off early.

Mrs Aussie - sounds like you are on top of things regardless of loan type.

 

[jezzza]

Taking money out on your house to buy a car is just a terrible idea..... just saying.

I couldn't disagree more, it depends how much equity you have in your home.

 

[indio22]

Taking money out on your house to buy a car is just a terrible idea..... just saying.

When wanting to buy something though, people can come up with various rosy financial scenarios to justify.

By paying off my house loan way early, I saved around $200,000 in interest payment. Sure, debt can be used to finance other investments, and I bought stocks after the COVID crash. But my house savings was solid. I'd stay away from diving back into house debt, for something like a car.

 

[Evolution]

I couldn't disagree more, it depends how much equity you have in your home.

How does equity have anything to do with it? More you have, the deeper in debt you can go? My house has doubled in value and I have no want to take money out cause of that.

Do you Aus people get better interest rates on taking out something on your house compared to a car loan? I can get a better car loan apr than house loan right now.

When wanting to buy something though, people can come up with various rosy financial scenarios to justify.

By paying off my house loan way early, I saved around $200,000 in interest payment. Sure, debt can be used to finance other investments, and I bought stocks after the COVID crash. But my house savings was solid. I'd stay away from diving back into house debt, for something like a car.

Yes, when people really want to do something, they do something even if it means.... happiness > the smart thing to do. Been through that before and will never go back.

 

[West Aussie]

Ok I'm going to be honest here, I don't know much about loans since I rarely use them but..... I actually looked in to taking out a loan on my house since I can and the results were bad. Interest rate was ok but I forget what kind of loan it was called, but it was one where you pay most of the interest first. Not like a car payment where interest is the same every month. So if you have a 15 year loan, the first couple years you barely pay off the principle. Not sure if that's the kind of loan you 2 are talking about. If it is, you can see why that's bad, especially if you plan on paying it off early.

Mrs Aussie - sounds like you are on top of things regardless of loan type.

Nah…no idea how paying interest first would work…here you just pay it off usually in monthly instalments and you pay the interest on the loan monthly too…so if you pay the car off in a year instead of three your only paying the interest on the year the banks had it, if that makes sense.
It incentivises paying of your loan quicker

 

[jezzza]

Do you Aus people get better interest rates on taking out something on your house compared to a car loan? I can get a better car loan apr than house loan right now.

Yeah that's exactly it. Our home loans are usually the best interest rates available.

 

[West Aussie]

When wanting to buy something though, people can come up with various rosy financial scenarios to justify.

By paying off my house loan way early, I saved around $200,000 in interest payment. Sure, debt can be used to finance other investments, and I bought stocks after the COVID crash. But my house savings was solid. I'd stay away from diving back into house debt, for something like a car.

Each to their own…as I said loans work differently where you are, we have a qualified accountant as well as being pretty cluey ourselves
Cash is there if we need it.
We too payed our house loan off a long time ago…apart from the $200 we let sit there so we can borrow again without applying to the bank if we need.
I hardly see the difference between this type of loan and a finance arrangement …apart from being around 5% better off in interest than if you go through a dealer.
Its not painting things rosy when you have the means to buy outright..it’s about making your investments work for you so you get paid without working

Things work differently in the two countries obviously, here it makes sense to borrow this way and 90% of people do so…hardly anyone uses dealership finances

 

[West Aussie]

How does equity have anything to do with it? More you have, the deeper in debt you can go? My house has doubled in value and I have no want to take money out cause of that.

Do you Aus people get better interest rates on taking out something on your house compared to a car loan? I can get a better car loan apr than house loan right now.



Yes, when people really want to do something, they do something even if it means.... happiness > the smart thing to do. Been through that before and will never go back.

Home equity loans do not work like that.
You borrow a sum of money, once you pay it off you can use that same loan amount to borrow if you want, you don’t get a larger amount because your house has tripled (as mine has) in price, you can only borrow against the initial amount you borrowed. If you only borrowed 50k that’s all you can still borrow.

And yes interest rates in home loan is FAR cheaper than car financing, hardly anyone uses that as everyone knows it’s a rip off….
indeed it’s usually people that don’t have and never have home equity loans that do ..like young people

PS should also note that the loan is not sold with our houses here. You sell a house, you pay what’s left on your loan and then buy a new house with what’s left over….totally Different systems in place

 

[Evolution]

Nah…no idea how paying interest first would work…here you just pay it off usually in monthly instalments and you pay the interest on the loan monthly too…so if you pay the car off in a year instead of three your only paying the interest on the year the banks had it, if that makes sense.
It incentivises paying of your loan quicker

Yeah that's exactly it. Our home loans are usually the best interest rates available.

Well then, welcome to America haha. Not how it works over here. Say you buy a house and have a $2000 payment. The first year you pay $1800 in interest per month. The next year, you are down to 1700 a month in interest. 3rd year, 1600.... you get the point (obviously made up numbers). That really makes the % rate not even matter if paying something off fast while taking a loan out on the house.

 

[West Aussie]

Well then, welcome to America haha. Not how it works over here. Say you buy a house and have a $2000 payment. The first year you pay $1800 in interest per month. The next year, you are down to 1700 a month in interest. 3rd year, 1600.... you get the point (obviously made up numbers). That really makes the % rate not even matter if paying something off fast while taking a loan out on the house.

Well if that’s how it worked here, I wouldn’t be doing it the way we are…that’s just ridiculous…how can they do that?
So there is no benefit for you guys to pay off a house 15years early other than getting it over with

that just sounds absolutely ridiculous to me

 

[Evolution]

Well if that’s how it worked here, I wouldn’t be doing it the way we are…that’s just ridiculous…how can they do that?
So there is no benefit for you guys to pay off a house 15years early other than getting it over with

that just sounds absolutely ridiculous to me

It depends. If you just make your normal monthly payment for 14 years and pay it off at 15, you aren't saving much. If you were to pay 1000 more each month for 14 years and then pay the remainder off at 15 years, it would be a huge savings. There is a set interest amount per month that slowly drops down over time. Starts high, ends low. Any extra over the interest amount you pay per month goes towards the principle balance.

 

[jdm-rhd]

 

[Donalex]

It depends. If you just make your normal monthly payment for 14 years and pay it off at 15, you aren't saving much. If you were to pay 1000 more each month for 14 years and then pay the remainder off at 15 years, it would be a huge savings. There is a set interest amount per month that slowly drops down over time. Starts high, ends low. Any extra over the interest amount you pay per month goes towards the principle balance.

A set interest amount (3%), but not a set interest dollar amount.

Why? Because the interest each month is calculated on a declining balance amount. If you make a $20k principal payment, you pay interest on the remaining balance you'll have at the end of the statement month.

Example: we sold our rental property last year. We took the proceeds and made a substantial principal payment on our current house. We paid $3.84 in interest over four months until it was paid off. Our house payment didn't change, but much more of the payment went to principal because the balance was so low.

Your house is an asset. Use all your assets wisely.

One of the biggest regrets of my financial life was to be frivolous in my spending and investment mindset during my 20's and 30's. I know hindsight is 20/20, but those were the days when Microsoft and Apple formed. I did get some satisfaction when we caught Tesla before the S&P 500 entry in Dec '20 and the 5 to 1 stock split shortly after. $5k turned into almost $75k in about 7 months.

 

[indio22]

Each to their own…as I said loans work differently where you are, we have a qualified accountant as well as being pretty cluey ourselves
Cash is there if we need it.
We too payed our house loan off a long time ago…apart from the $200 we let sit there so we can borrow again without applying to the bank if we need.
I hardly see the difference between this type of loan and a finance arrangement …apart from being around 5% better off in interest than if you go through a dealer.
Its not painting things rosy when you have the means to buy outright..it’s about making your investments work for you so you get paid without working

Things work differently in the two countries obviously, here it makes sense to borrow this way and 90% of people do so…hardly anyone uses dealership finances

Yep there are different ways to skin a cat so to speak. Generally speaking though, on a home loan if you pay down the principle early, that can provide quite a savings on the interested paid.

In the USA (until recently at least), anyone with a good credit rating could get a relatively low interest rate car loan. Typically lower than a home loan interest rate. For that reason, if taking out a loan for a car, it made better sense to get a dedicated car loan.

On a more philosophical level, one has to consider if taking money out of an appreciable asset (home) for a depreciable asset (car), is a good idea. It can be, or not, depending on the situation. Sounds like not an issue for you.

 

[Drseckzytime]

So here's my suggestion... since we know Nissan is most likely monitoring this thread... What if for 2024, Nissan increased the price of the Sport to say $41,490 but it included the LSD... Would you all think that's worth the price? They also could bring the price of the Performance down slightly ($49,490) since that'll for sure decrease the price of the LSD since the volume would increase... you know if they're feeling generous. Lol

That's the biggest blunder here, the omission of the LSD on the Sport, if you ask me. I think the pricing is fine.

That wasn't a blunder by Nissan. That was a purposeful decision, especially since you can see what is put in the Performance trim. Nissan wanted to force the performance trim for premium profits. There isn't $10k worth of upgrades there. Blatant, gouging, cash grab.