Other threads here have talked about how anyone can join Pentagon Federal Credit Union. I joined up and am definitely going to use them for my MINI.

They also have another loan which they call the "payment saver option" which looks like a lease but isn't. The monthly payment is based on the purchase price less the estimated residual value of the car at the end of the loan term. So the monthly is really low.

At the end of the loan period you owe the residual which you can payoff or refinance. In some states like mine, this looks interesting since with a lease, my state taxes the whole purchase price of the car up front and then you have to pay sales tax again on the residual on a buyout of the lease to keep the car or even trade it in. (I understand other states only tax the monthly lease payment).

The loan is at 4.5% but you are carrying the residual value and paying interest on it for the term of the loan. But it does give you a very low payment during the term and you wind up with a loan value which is at or near the market value of the car at the end of the term.

Has anyone taken a look at this kind of loan? Any thoughts as to how it would compare to a lease?