I am sure this was discussed way back when, but I thought I would re-post in case folks are considering the resale guarantee. My assumptions are as follows:
I found it interesting that the interest cost difference was over $4,200 at the 36 month mark. That is fairly expensive insurance. Basically, assuming you are going to finance the car anyway, you are paying a >4% premium to be able to walk away from it at a specified value in three years. I am not offering an opinion as to whether it is worth it or not, but just wanted to share the observation.
I will note that for those that plan to finance at 72 months or 84 months, the difference is much lower since DCU's rate increases dramatically ($3,822 and $1,734 respectively). Thus, it is much cheaper insurance if you plan to finance over a longer term, but get rid of the car in 3 years.
- Tech Credit Union (since available in almost all states) vs Digital Credit Union (well publicized low rate)
- $110,000 purchase price (not including sales tax since Tech CU will not finance that)
- 15% down payment
- 66 month loan term
- 2.99% TCU
- 0.99% DCU
I found it interesting that the interest cost difference was over $4,200 at the 36 month mark. That is fairly expensive insurance. Basically, assuming you are going to finance the car anyway, you are paying a >4% premium to be able to walk away from it at a specified value in three years. I am not offering an opinion as to whether it is worth it or not, but just wanted to share the observation.
I will note that for those that plan to finance at 72 months or 84 months, the difference is much lower since DCU's rate increases dramatically ($3,822 and $1,734 respectively). Thus, it is much cheaper insurance if you plan to finance over a longer term, but get rid of the car in 3 years.
