dealsmercedes-benz with $1 million deposit at c1 bank

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I just withdrew my million and then realized I wasn't a Florida resident.

OK Jeeves, put the private jet back in the hangar....no, not that hangar, the other one.

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Not really free, since you don't get to collect the interest for 5 years.

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Im saving up. When does the deal expire?

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If it comes with Hookers, I'M IN!

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@ricardopresas: In a financial sense, $90,000 in five years is not nearly worth $90,000 today. One must use the present value of money to compare values at different times. In other words, you have to discount that $90,000 at the risk free interest rate for five years to see how much it's worth today.

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Best deal out there for a 5-year deal is 1.8% compounded quarterly. Ally has it for 1.68 daily. Either way, not much diff.

So at the end of the 5 years, compounded, you're looking a little above $90k. Do the NPV of it.

Compared to C1's deal:
1.2% gets you slightly above $61k, do the NPV but also add in the value of the car and taxes. But you also get a $60k car.

Basically, is the car worth more than the $30k diff in interest spread over the 5 years? Yeah, it's a deal.

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This is not a good deal from a financial point.

1) In the fine print it says they are paying the full term interest up front and that money is used to pay for the car. You only get the 1 million back at the end of the term(no additional interest) - quote from fine print " At maturity of the full term with no exceptions or withdrawals, the client is entitled to receive from C1 Bank the $1,000,000.00 principal amount of deposited funds only"

2) What is the car worth after 5 years? It is a depreciating asset. So at the end of 5 years in future value dollars you could have a 1 mil + 90k in interest - or 1 mil and a car worth probably 30k.

3) Don't forget the cost to insure and drive the car.

4) Income tax on the entire pre-payed interest this year

I suppose if you were in the market for a new Mercedes it might be a good deal - depends on how it compares to just buying one outright and depositing the rest of the money in another bank.

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Even at the LOWEST CD Interest rates, if this one doesnt let you collect interest then thats AT LEAST $90,000 in SIMPLE (not even compund) interest.

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I was gonna go for it but they didn't have it in blue.

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Only good for upto 2 per household, my mistress and I are in for 1. Wife gets screwed again. It's good to be reach!

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You should just buy the car outright. $1mil can be invested and provide a better return...