I ended up with a Civic. It's gorgeous and I absolutely love it. Man, I never thought I was into cars -- but this is my new toy and I haven't been able to take my eyes off of it. I think three things contributed to my love for this car.
The first was the that the literature on this car catered to what I wanted. The engineering is top notch, the safety ratings impeccable, and the fuel economy is one of the best. Oh, and the trunk is really large and the car is wide enough for me to put my cello hard case on the rear seats.
The second was that I got a trim level and color that suited me perfectly. The DX lacked many features that I wanted (like air conditioning and cruise control), while the EX had many things that I didn't need (the sunroof comes to mind). And then there was color. I had coveted a blue car since I was a little girl, and never had that wish fulfilled (former cars in my family were red, green, and silver). So now I have a beautiful blue one, and I am so much happier with it than if I had chosen silver or beige.
The last consideration was that I felt that I had gotten a good deal on this car. MSRP, including destination charge, on this baby was $18,355. Edmunds' TMV price for my area is $17,529 while the invoice price is reported to be $16,944. The dealership I went to sold it to me for $16,632. I could have gotten another $200 off if I had settled for silver, gray, or beige. I did seriously consider it, but in the end I felt that the $200 is worth a color that I L-O-V-E, especially since I plan to keep this car for the next two decades. Total price, including taxes and fees, came to just a few dollars over eighteen grand, and the dealer did not try to push any of the extras on me.
It is interesting how human psychology works. If one of these three factors did not exist, I don't think I would be as happy as I am now.
I also applied for the 2.9% financing, since I can put the cash into a savings account paying 5% (In my finance class, I think this is called a risk-free arbitrage opportunity). The financing should be no problem, but I have heard horror stories of people driving the car off the lot and having their app rejected two weeks later, after they've spent hundreds of dollars on insurance, maintenance, third-party supplies, etc.
June 13, 2007
June 09, 2007
My day as a new car buyer
I've been thinking about buying a car for over a year (proof is in the archives), and I'm finally ready to make the leap. Having explored a bit on both new and used cars, I've decided that I would love a new Honda Fit or Civic. Both are well designed and safe cars. The Fit is a new model that Honda introduced recently to satisfy the subcompact market. The Civic needs no introduction, especially since the used Civic prices seem to be astronomically high (for a used car, that is).
I've been looking at Honda Fits forever, and took a test drive in one today. The Fit appealed to me on may levels -- small car, good gas mileage, standard side airbags, standard anti-lock brakes, and an amazing ability to store many many things. During the test drive, however, I didn't feel that the Fit was the "it" care for me. My legs felt a little cramped, my left foot had nothing to rest on, and my elbows were confused. I'm never going to use the paddle shifters, and my hands found the steering wheel slightly uncomfortable.
After returning the Fit, I test drove the Civic. This car is one that I felt very comfortable with. The only thing that took a bit of adjusting to was looking out the front windshield. The new Civics have this interesting design where the dashboard extends quite far in front, thus making the front hood significantly shorter. As a result, the driver simply cannot see the front hood. I didn't know how far forward to go when I pulled up to the first red light, that feeling did subside after a few more lights.
Privately, I had decided on the Civic LX, but I wanted to see what potential deals were available. The Fit is in very short supply, leading to the regrettable result of it selling at or above MSRP. There dealership that I test drove the vehicles had a $2000 markup, along with $750 in dealer-added accessories, on their Fits! Their quoted price for the Fit Sport (which was the one they had in stock), including taxes and fees, amounted to $20,100! This is in comparison with the Civic LX, which they quoted at $19,740.
By the way, I did not get these quotes without a fight. After all the test drives, the salesperson led me to a chair in the waiting area. Before long, a seasoned manager came to talk to me. Boy, I quickly learned what people refer to when they say that there are "high pressure sales" at a car dealership. This dealership simply wouldn't give me an official quoted price! After an hour of telling them, "no, I don't want to fill out these stupid forms, all I want is a quote and to think about these two vehicles," and "no, I don't want to make a decision between the Fit and the Civic right now. I need at least a day to decide," I finally get two official quotes, with the aforementioned prices. As I gather the papers together and put them into my bag, the salesperson apologetically tells me that I can't take the quotes with me. WTF? No matter. I put the sheets back on the table and copy the numbers by hand onto a half sheet of paper that I had in my purse.
As I walked out the door with my scribbled figures, a manager made one last attempt. "I don't want to lose you as a customer due to price." So I told them that I would definitely give them first consideration when I had decided on a vehicle and was serious about buying. Coming home, I checked prices on cardirect.com. The website could not offer me a Fit -- none of the dealers that they worked with had any in stock. It did, however, offer me a Civic LX for $17,475 before taxes and fees. Edmunds.com showed that the invoice price for the Civic LX as $16,944, and $17,529 as what other people were paying in my neighborhood. These prices were roughly $900 less than the quote I got at the dealership.
Well, I ate lunch and dwelled upon the cars and the prices. At this point, I had pretty much decided on the Civic LX. There was no way that I was paying more for a Fit, and the thought of paying significantly above MSRP was disgusting to me. Having the afternoon free as well, I decided to visit an automall that was about an hour's drive from my house -- a friend had bought her car there and had had a decent experience. On the way, I saw another Honda dealership and abruptly decided to check the place out. They did have both Fits and Civics in their inventory. Fits were priced at MSRP, with no markup. Civics were available at MSRP, and if I wanted to make an offer, they would consider it. So I threw out $16,500 for a dark blue Civic, thinking that that would allow me to bargain up to $17,000, or around invoice. The sales manager thought about it, and said that he could only do that price for the silver and gray models.
Well! That was was unexpected. I asked him about the blue cars, and at first he blustered and said that he could only do MSRP on those. I told him that I'd have to look at the cars on the lot and think about it. As I was looking at the colors, trying to decide if I cared about color, the manager came up and said that he could do blue for about $500 more, or at invoice. Since I was actually on my way to another dealership, I thanked the salesperson, took his card, and promised to call him by Monday if I wanted to buy a car from him.
I drove elatedly to the dealership that I had actually wanted to go to. There, I was impressed. The salesperson that I talked to subscribed more along the lines of high-pressure tactics. He kept wanting to know all about me and tried to push one car over another. I stood firm on the Fit and the Civic LX. They didn't have any Fits; the Civic they had and offered at MSRP. I told him I was looking for a good deal and he said to make an offer. Remembering my previous experience, I offered at $16,000, to which he balked and said no way. I waited for him to counteroffer, but all he did was ask me to raise my price. So I raised it to $16,100, which he also declined. At which point, I asked if he was willing to go below invoice, of which he replied in the negative. This, while all the time trying to sell me the vehicle. He was definitely a very poor salesman.
Having returned home, I've decided to record today's experiences for future reference. The price at the second dealership was the best, and I am thinking of calling them up and giving them the down payment now. But I did promise the first dealership that I would give them first consideration, and so I will honor my word and ask them to beat the price tomorrow. If they match or beat it, then I will buy from them -- despite their general sales tactics, they did let me test drive both vehicles without any fuss or complications, and the sales person that accompanied me on the drive was both friendly and knowledgeable.
I've been looking at Honda Fits forever, and took a test drive in one today. The Fit appealed to me on may levels -- small car, good gas mileage, standard side airbags, standard anti-lock brakes, and an amazing ability to store many many things. During the test drive, however, I didn't feel that the Fit was the "it" care for me. My legs felt a little cramped, my left foot had nothing to rest on, and my elbows were confused. I'm never going to use the paddle shifters, and my hands found the steering wheel slightly uncomfortable.
After returning the Fit, I test drove the Civic. This car is one that I felt very comfortable with. The only thing that took a bit of adjusting to was looking out the front windshield. The new Civics have this interesting design where the dashboard extends quite far in front, thus making the front hood significantly shorter. As a result, the driver simply cannot see the front hood. I didn't know how far forward to go when I pulled up to the first red light, that feeling did subside after a few more lights.
Privately, I had decided on the Civic LX, but I wanted to see what potential deals were available. The Fit is in very short supply, leading to the regrettable result of it selling at or above MSRP. There dealership that I test drove the vehicles had a $2000 markup, along with $750 in dealer-added accessories, on their Fits! Their quoted price for the Fit Sport (which was the one they had in stock), including taxes and fees, amounted to $20,100! This is in comparison with the Civic LX, which they quoted at $19,740.
By the way, I did not get these quotes without a fight. After all the test drives, the salesperson led me to a chair in the waiting area. Before long, a seasoned manager came to talk to me. Boy, I quickly learned what people refer to when they say that there are "high pressure sales" at a car dealership. This dealership simply wouldn't give me an official quoted price! After an hour of telling them, "no, I don't want to fill out these stupid forms, all I want is a quote and to think about these two vehicles," and "no, I don't want to make a decision between the Fit and the Civic right now. I need at least a day to decide," I finally get two official quotes, with the aforementioned prices. As I gather the papers together and put them into my bag, the salesperson apologetically tells me that I can't take the quotes with me. WTF? No matter. I put the sheets back on the table and copy the numbers by hand onto a half sheet of paper that I had in my purse.
As I walked out the door with my scribbled figures, a manager made one last attempt. "I don't want to lose you as a customer due to price." So I told them that I would definitely give them first consideration when I had decided on a vehicle and was serious about buying. Coming home, I checked prices on cardirect.com. The website could not offer me a Fit -- none of the dealers that they worked with had any in stock. It did, however, offer me a Civic LX for $17,475 before taxes and fees. Edmunds.com showed that the invoice price for the Civic LX as $16,944, and $17,529 as what other people were paying in my neighborhood. These prices were roughly $900 less than the quote I got at the dealership.
Well, I ate lunch and dwelled upon the cars and the prices. At this point, I had pretty much decided on the Civic LX. There was no way that I was paying more for a Fit, and the thought of paying significantly above MSRP was disgusting to me. Having the afternoon free as well, I decided to visit an automall that was about an hour's drive from my house -- a friend had bought her car there and had had a decent experience. On the way, I saw another Honda dealership and abruptly decided to check the place out. They did have both Fits and Civics in their inventory. Fits were priced at MSRP, with no markup. Civics were available at MSRP, and if I wanted to make an offer, they would consider it. So I threw out $16,500 for a dark blue Civic, thinking that that would allow me to bargain up to $17,000, or around invoice. The sales manager thought about it, and said that he could only do that price for the silver and gray models.
Well! That was was unexpected. I asked him about the blue cars, and at first he blustered and said that he could only do MSRP on those. I told him that I'd have to look at the cars on the lot and think about it. As I was looking at the colors, trying to decide if I cared about color, the manager came up and said that he could do blue for about $500 more, or at invoice. Since I was actually on my way to another dealership, I thanked the salesperson, took his card, and promised to call him by Monday if I wanted to buy a car from him.
I drove elatedly to the dealership that I had actually wanted to go to. There, I was impressed. The salesperson that I talked to subscribed more along the lines of high-pressure tactics. He kept wanting to know all about me and tried to push one car over another. I stood firm on the Fit and the Civic LX. They didn't have any Fits; the Civic they had and offered at MSRP. I told him I was looking for a good deal and he said to make an offer. Remembering my previous experience, I offered at $16,000, to which he balked and said no way. I waited for him to counteroffer, but all he did was ask me to raise my price. So I raised it to $16,100, which he also declined. At which point, I asked if he was willing to go below invoice, of which he replied in the negative. This, while all the time trying to sell me the vehicle. He was definitely a very poor salesman.
Having returned home, I've decided to record today's experiences for future reference. The price at the second dealership was the best, and I am thinking of calling them up and giving them the down payment now. But I did promise the first dealership that I would give them first consideration, and so I will honor my word and ask them to beat the price tomorrow. If they match or beat it, then I will buy from them -- despite their general sales tactics, they did let me test drive both vehicles without any fuss or complications, and the sales person that accompanied me on the drive was both friendly and knowledgeable.
June 07, 2007
30 days notice
It's official! I gave my thirty days notice, and I will be "unemployed" starting the mid-July. That will give me two weeks to move and get settled in for school.
It's looking less likely that I will buy a place before school starts. The rising interest rates are making it less likely for me to finance a home at a reasonable price/monthly payment. Additionally, I just spent a few days there to look around and get a feel for the place. Atlanta still has lots of land available, and way too many condos either in development or on the market. I am concerned about resale value if I end up with a condo, as no one seems that interested in buying an old one -- including me. So maybe a townhouse or a SFR would be a better investment. It would require more initial cash and my monthly payments would probably be a lot higher because the purchase price would be higher.
Well, a solution might be to rent a place month-to-month for the first year and just go with the flow. If it was destined to be, then it will happen. If not, no biggie. I saw an apartment that I absolutely loved -- 2 bed / 2 bath, 1300 s.f., 9 ft ceilings, completely updated with modern appliances and a huge kitchen, walk-in closets, energy efficient. Walking through the place simply felt like I would be extremely comfortable here. Rent is $1200 a month. Two things have prevented me from immediately signing on the dotted line -- a 13-month lease and not having a roommate. The latter will resolve itself, I'm sure, in the near future, but I don't want to commit when it's just myself.
It's looking less likely that I will buy a place before school starts. The rising interest rates are making it less likely for me to finance a home at a reasonable price/monthly payment. Additionally, I just spent a few days there to look around and get a feel for the place. Atlanta still has lots of land available, and way too many condos either in development or on the market. I am concerned about resale value if I end up with a condo, as no one seems that interested in buying an old one -- including me. So maybe a townhouse or a SFR would be a better investment. It would require more initial cash and my monthly payments would probably be a lot higher because the purchase price would be higher.
Well, a solution might be to rent a place month-to-month for the first year and just go with the flow. If it was destined to be, then it will happen. If not, no biggie. I saw an apartment that I absolutely loved -- 2 bed / 2 bath, 1300 s.f., 9 ft ceilings, completely updated with modern appliances and a huge kitchen, walk-in closets, energy efficient. Walking through the place simply felt like I would be extremely comfortable here. Rent is $1200 a month. Two things have prevented me from immediately signing on the dotted line -- a 13-month lease and not having a roommate. The latter will resolve itself, I'm sure, in the near future, but I don't want to commit when it's just myself.
June 05, 2007
AirTran Airways charging for seat assignments
Today I got an e-mail from AirTran Airways trumpeting the beginning of charging for seat assignments. Previously, seat assignments were only available for regular fare or business class passengers. Those with sale or discount tickets had to wait until check-in to get a seat assignment. Now, for an extra $5 each way, you can choose a seat upon purchase. For an exit row seat with an extra 8 inches of legroom, it's an extra $15 each leg.
I'm not sure I approve. I've been trained by AirTran over this past year to compulsively check the time so that right at 24 hours before departure I rush to my computer, log into my account, and check in for the best coach seat I can find. This usually lets me secure a window or aisle seat in rows 10-11, the first two in coach. Being the cheapstake I am, I'm not sure I want to pay the extra $10 to ensure "one of my usuals."
I'm not sure I approve. I've been trained by AirTran over this past year to compulsively check the time so that right at 24 hours before departure I rush to my computer, log into my account, and check in for the best coach seat I can find. This usually lets me secure a window or aisle seat in rows 10-11, the first two in coach. Being the cheapstake I am, I'm not sure I want to pay the extra $10 to ensure "one of my usuals."
May 29, 2007
Yield to Maturity vs. actual return
I've decided to audit a summer class at the Haas Business School at UC Berkeley. Having virtually no formal training in economics or finance, I have found the perfect class: Introduction to Finance.
Today we learned about Coupon Bonds and yields to maturity (YTM). YTM is essentially the coupon (interest rate) that a particular bond yields divided by the current price of that bond. For example, if a 10-year bond coupon is 5% and it currently sells for $1,000, then its YTM is 5%. On the other hand, if the coupon is 5% but the bond sells for $500, then its YTM is around 13% ($100 [interest + appreciation] / $750).
The problem of using YTM is that a typical investor will assume that this interest rate is compoundable. This is NOT the case, as one cannot assume that one can re-invest the proceeds at the same rate in the future. In a worst case scenario, one cannot re-invest them at all, and this translates to an APR of 7%. As a result, a bond investor needs to understand that the YTM and the APR are two different beasts and invest accordingly.
Today we learned about Coupon Bonds and yields to maturity (YTM). YTM is essentially the coupon (interest rate) that a particular bond yields divided by the current price of that bond. For example, if a 10-year bond coupon is 5% and it currently sells for $1,000, then its YTM is 5%. On the other hand, if the coupon is 5% but the bond sells for $500, then its YTM is around 13% ($100 [interest + appreciation] / $750).
The problem of using YTM is that a typical investor will assume that this interest rate is compoundable. This is NOT the case, as one cannot assume that one can re-invest the proceeds at the same rate in the future. In a worst case scenario, one cannot re-invest them at all, and this translates to an APR of 7%. As a result, a bond investor needs to understand that the YTM and the APR are two different beasts and invest accordingly.
May 27, 2007
Yapta -- Your Amazing Personal Travel Assistant
Yahoo! Finance has an article on Yapta, a new tool that can detect changes in airfare on specific flights. For example, say I buy a round-trip ticket to Atlanta on airtrans.com for a July weekend. If I tag those specific flights, then Yapta will track the changes in airfare for me. If the prices tumble, then Yapta will e-mail me and include the procedures for getting a refund or a voucher. It doesn't yet work on all travel sites, but this little tools seems to be a great idea.
May 25, 2007
Atlanta housing
I would really like to buy a place in Atlanta. I shake my head ruefully at the thought though, because I'd be paying the mortgage during my student years with student loan money. There is something that's just not right about using debt to pay off debt. Regardless of what I do, however, I have to live somewhere. Given Atlanta's rental rates and condo prices, I believe that owning a place there would not have to be significantly more expensive than renting an apartment.
I've placed a few feelers for mortgage products and rates. As a student, I'll have virtually no income. That already means that I can't qualify for any traditional mortgage product. Add to the fact that I currently have a mortgage, and my debt-to-income ratio, as well as my debt-to-assets ratio, will fly through the roof. Here is where I am very happy to have access to the subprime mortgage lending industry. They do a lot of "stated income" (aka liar loans) and "no doc" loans. Since I have no future income, I'm looking at no doc loans. Essentially, these loans only require that you have a good credit score and enough money in your bank account to close. In return, they charge a higher rate, theoretically because these loans have a higher rate of default. Quotes that I have gotten so far range between 7.5% and 9% APR, depending on how much I put into a down payment. It's not ideal, but it is workable.
I estimate that the maximum I'd be willing to spend on a one-bedroom is $1000 per month and $1500 per month on a two-bedroom. Taking into account HOA fees, insurance, and taxes; and assuming that I finance 100% of the home, those monthly figures work out to be approximately $90,000 for a one-bedroom and $145,000 for a two-bedroom. Being used to Bay Area prices, I look at those figures and say, "no way." Fortunately, Atlanta is not San Francisco. In Atlanta, there are a few older condos that are that cheap. I'd have to investigate further, but thus far, this idea of buying a condo is not D.O.A.
I've placed a few feelers for mortgage products and rates. As a student, I'll have virtually no income. That already means that I can't qualify for any traditional mortgage product. Add to the fact that I currently have a mortgage, and my debt-to-income ratio, as well as my debt-to-assets ratio, will fly through the roof. Here is where I am very happy to have access to the subprime mortgage lending industry. They do a lot of "stated income" (aka liar loans) and "no doc" loans. Since I have no future income, I'm looking at no doc loans. Essentially, these loans only require that you have a good credit score and enough money in your bank account to close. In return, they charge a higher rate, theoretically because these loans have a higher rate of default. Quotes that I have gotten so far range between 7.5% and 9% APR, depending on how much I put into a down payment. It's not ideal, but it is workable.
I estimate that the maximum I'd be willing to spend on a one-bedroom is $1000 per month and $1500 per month on a two-bedroom. Taking into account HOA fees, insurance, and taxes; and assuming that I finance 100% of the home, those monthly figures work out to be approximately $90,000 for a one-bedroom and $145,000 for a two-bedroom. Being used to Bay Area prices, I look at those figures and say, "no way." Fortunately, Atlanta is not San Francisco. In Atlanta, there are a few older condos that are that cheap. I'd have to investigate further, but thus far, this idea of buying a condo is not D.O.A.
May 24, 2007
Edamerica it is
So I finally got around to calling Edamerica to ask about their deferment policies. The rep was really friendly and knowledgeable and was able to clarify it in no time. Yes, the 1.3% interest rate rebate will be applicable to deferment and yes, the interest will only be capitalized at the end of all continuous deferment. This means that if I defer throughout medical school and residency, then interest will only capitalize at the end of residency. As a result, I won't pay interest on interest. Hallelujah! I'm definitely trying out Edamerica this year for the PLUS loan. It offers the best front-load deal, the terms look good, and I got my question answered in a minimal amount of time.
In regards to the Stafford loans, I've decided to eschew Graduate Leverage and go with the AAMC Medloans program instead. Front-end wise, it's interest rate is slightly higher than GL's, but I prefer their policy of capitalizing only once, and they have much better incentives once I enter re-payment.
In regards to the Stafford loans, I've decided to eschew Graduate Leverage and go with the AAMC Medloans program instead. Front-end wise, it's interest rate is slightly higher than GL's, but I prefer their policy of capitalizing only once, and they have much better incentives once I enter re-payment.
May 16, 2007
Narrowing down Lenders
With the recent student loans scandals, one realizes that one cannot trust university financial aid offices for sound financial advice. So, I've been scouring the internet for various sources of Federal Stafford and Federal Grad PLUS loans. While these loans carry fixed rates of 6.8% and 8.5%, respectively, each lender is allowed to offer additional benefits for the borrower. These can include rebates and interest rate reductions. A big problem in comparing the various offerings, however, is that there is no standard way to compare them. For example, how is one to compare the benefit "0.6% interest rate reduction at disbursement" with "3% principal rebate after 180 days"? Here, student loans can be a black box because a standardized APR is not required.
I've determined that an immediate reduction, a.k.a. front loading, is a better benefit than interest rate reductions further down the road. That's because a) while I know the present, I can't predict the future, b) future interest rate reductions, a.k.a. back loading, have contingencies that I may or may not honor in the future, and c) I have the option of consolidating.
Based on my own criteria, I've narrowed it down to three companies for the GradPLUS, and two for the Staffords.
GradPLUS, base rate is 8.5% fixed, w/ 3% origination fee:
1. AAMC Medloans: Offers 0.6% interest rate reduction (IRR) at disbursement, an additional 0.75% IRR with on-time repayment, and 0.5% IRR at repayment with auto-debit. Interest is capitalized once, after continuous deferment. Rate reductions contingent upon on-time payment, benefits can be re-instated once after 24 on-time payments.
APR in school: 8.57%
APR in school+residency: 7.02%
APR after residency: 6.65% (best case)
2. EdAmerica: Offers 1.25% IRR at disbursement, an additional 0.5% IRR at repayment with auto-debit. Interest (I think, will need to double check) is capitalized once, after continuous deferment. Rate reductions contingent upon on-time payment, benefits can be re-instated once after 24 on-time payments.
APR in school: 7.33%
APR in school+residency: 6.56%
APR after residency: 6.75% (best case)
3. Graduate Leverage: Offers 1.3% IRR at disbursement, 3% origination fee rebate 120 days after disbursement. Interest is capitalized annually.
APR in school: 7.28%
APR in school+residency: 7.23%
APR after residency: 7.2% (best case)
Stafford Loans, base rate is 6.8% fixed:
1. AAMC Medloans: Offers 0.3% IRR at disbursement, and an additional 1.0% IRR at repayment with on-time payment and 0.75% IRR with auto-debit. Interest capitalizes once, after continuous deferment.
APR in school: 6.11%
APR in school+residency: 5.54%
APR after residency: 4.75% (best case)
2. Graduate Leverage: Offers 1.0% IRR at disbursement. Interest capitalizes annually.
APR in school: 5.80%
APR in school+residency: 5.80%
APR after residency: 5.80% (best case)
I've determined that an immediate reduction, a.k.a. front loading, is a better benefit than interest rate reductions further down the road. That's because a) while I know the present, I can't predict the future, b) future interest rate reductions, a.k.a. back loading, have contingencies that I may or may not honor in the future, and c) I have the option of consolidating.
Based on my own criteria, I've narrowed it down to three companies for the GradPLUS, and two for the Staffords.
GradPLUS, base rate is 8.5% fixed, w/ 3% origination fee:
1. AAMC Medloans: Offers 0.6% interest rate reduction (IRR) at disbursement, an additional 0.75% IRR with on-time repayment, and 0.5% IRR at repayment with auto-debit. Interest is capitalized once, after continuous deferment. Rate reductions contingent upon on-time payment, benefits can be re-instated once after 24 on-time payments.
APR in school: 8.57%
APR in school+residency: 7.02%
APR after residency: 6.65% (best case)
2. EdAmerica: Offers 1.25% IRR at disbursement, an additional 0.5% IRR at repayment with auto-debit. Interest (I think, will need to double check) is capitalized once, after continuous deferment. Rate reductions contingent upon on-time payment, benefits can be re-instated once after 24 on-time payments.
APR in school: 7.33%
APR in school+residency: 6.56%
APR after residency: 6.75% (best case)
3. Graduate Leverage: Offers 1.3% IRR at disbursement, 3% origination fee rebate 120 days after disbursement. Interest is capitalized annually.
APR in school: 7.28%
APR in school+residency: 7.23%
APR after residency: 7.2% (best case)
Stafford Loans, base rate is 6.8% fixed:
1. AAMC Medloans: Offers 0.3% IRR at disbursement, and an additional 1.0% IRR at repayment with on-time payment and 0.75% IRR with auto-debit. Interest capitalizes once, after continuous deferment.
APR in school: 6.11%
APR in school+residency: 5.54%
APR after residency: 4.75% (best case)
2. Graduate Leverage: Offers 1.0% IRR at disbursement. Interest capitalizes annually.
APR in school: 5.80%
APR in school+residency: 5.80%
APR after residency: 5.80% (best case)
May 06, 2007
Is there any point in a certified used car?
In a recent New York Times article, certified used cars aren't what the consumer expects them to be. The certification program supposedly only certifies the best used cars and gives consumers peace of mind by guaranteeing the used car against any defects and offering a standard warranty. The article, however, points out that certifying and repairing the car falls on the dealers themselves, and not the manufacturers. Thus, buying a certified car from a reputable dealer is probably fine, but buying one from a shady one could result in buying a lemon or a car that was welded together from two separate lemons. The problem is, how does one tell if the dealer is honest and conscientious?
So it happens that buying "certified used," or "certified pre-owned" ends up being the same as buying any used car -- buyer beware.
So it happens that buying "certified used," or "certified pre-owned" ends up being the same as buying any used car -- buyer beware.
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