Free Mercedes-Benz when you open a $1M 5yr CD (1.2% APY)

Can I double-dip with the AMEX Mercedes Platinum?

kwest said:   TERMS: Offer is limited to two (2) Mercedes vehicles per household for this promotion.
Limit of 2 kills the deal.

ZOMG that's the longest paragraph of fine print I've seen in a long time:
C1 Bank’s 60 month Certificate of Deposit (CD) special with a minimum opening and required minimum balance of $1,000,000.00 is valid through July 31, 2012. Offer applicable to traditional certificate of deposit accounts only. Individual Retirement Account certificates of deposit are not eligible for this special offer. This offer is for a limited time and may be withdrawn at any time without notice. This offer is applicable for NEW funds and is available for Consumer deposits only. Offer valid for Florida Residents only age 18 years or older with a valid Florida driver’s license. Offer is limited to two (2) Mercedes vehicles per household for this promotion. Subject to the terms and conditions of the deposit contract, C1 Bank will pay a pre-calculated interest rate of 1.19% with an annual percentage yield (“APY”) of 1.20% in advance on deposited funds at the completion of account opening. The 1.20% APY is available for new accounts only opened on or before May 31, 2012. For new accounts opened after May 31, 2012 the interest rate and APY will be based on the 60 month interest rate offered in connection with this promotion at the time the account is opened and compounded daily. The pre-calculated interest in advance amount $61,294.00 based on the 1.20% APY available through May 31, 2012 can only be used towards the purchase of one of four (4) specific Mercedes Benz vehicle models from Crown Eurocars Inc. with a MSRP of $59,585.00 and includes $3,488.34 sales tax, $687.70 delivery fee, $2.50 Florida Lemon Law fee, $6.50 Florida tire and battery fee, $500.00 registration/tag and $24.00 electronic filing fee with a total purchase price, net of $3,000.00 discount, of $61,294.04. Client will be responsible for any other fees or charges incurred in connection with purchase. The four (4) promotional models available for purchase are the 2012 SLK350, E350, ML350, or E350 Convertible, subject to dealer availability and with a $59,585.00 MSRP. Client may select vehicle from available inventory designated by Crown Eurocars Incorporated. If Client selects vehicle from other inventory of Crown Eurocars Incorporated, Client will be responsible for the difference between the pre-calculated interest in advance amount and the purchase price of the vehicle and any related increase in taxes, fees and other costs associated with the purchase of the vehicle. Vehicle colorand options subject to availability. Vehicle may only be registered in the name of the Primary account owner and cannot be exported to any location outside of the continental United States for a period of 12 months from the date of purchase and delivery. Client will be responsible for Insurance, Warranties, Licenses, and any other fees and costs not covered under the terms and conditions of this promotion. Client is responsible for taking delivery of the vehicle at Crown Eurocars Incorporated located at 6001 34th St N Saint Petersburg, FL 33714. Pre-calculated interest earned and paid in advance on the CD may be subject to applicable State or Federal taxes. C1 Bank will issue a same year (2012) 1099-INT Interest Statement for pre-calculated interest earned. Client should consult and discuss any taxation issues with a tax advisor. FDIC deposit insurance covers the standard deposit insurance amount of $250,000.00 per depositor, per insured bank, for each account ownership category, as provided by applicable law. FDIC Insurance Coverage can be calculated using the FDIC’s online Electronic Deposit Insurance Estimator (EDIE) at: www.fdic.gov/edie. Significant early withdrawal penalties will apply to the certificate of deposit available through this promotion. The principal amount will be reduced by any penalty for the early withdrawal of funds. In the event of early withdrawal, C1 Bank will deduct from the $1,000,000.00 principal amount deposited the amount of the pre-calculated, pre-paid interest paid in advance and specifically used for a Mercedes vehicle purchase from Crown Eurocars Incorporated, including any delivery, tax and costs paid with such interest ($61,294.04). In addition to the early withdrawal penalty, C1 Bank will also deduct an early withdrawal fee of $3,000.00 from the $1,000,000.00 principal amount deposited. The early withdrawal penalty and the early withdrawal fee could reduce the earnings on your certificate of deposit account. Partial withdrawals are not allowed. Once the CD is opened, client agrees to be bound by the terms and conditions of the promotional offer and deposit account agreement during the 60-month term of the CD and even after the account is closed. 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. The CD is not auto-renewable.In addition, by accepting the terms and conditions of the promotional offer, the primary account holder forever releases and holds C1 Bank and CBM Florida Holding Company and Crown Eurocars Inc. harmless from any and all liability for any injury, loss or damage of any kind to persons, including death, and property arising in whole or in part, directly or indirectly, from acceptance, possession, use or misuse of the vehicle, or participation in the offer. This promotion and agreement will be governed by the laws of the State of Florida and applicable federal laws and regulations. C1 Bank is not responsible for any incorrect or inaccurate information provided in advertising. C1 Bank reserves the right to cancel or modify this offer at any time without notice. Please visit C1 Bank for full terms and conditions of this limited time promotional offer.

mdabney said:   Offer only available for Florida residents kills the deal ... I'm out.

I was about to jump on it too.

jkimcpa said:   ironfist99 said:   In for 250.JCarterVA???
LOL! Strangely, ironfist99 edited out the message.

LawDawgAtl said:   That's the way that I am reading it as well. It's kind of a strange offer. Why would you invest any amount of money at 1.2% for 5 years (the fact that interest is prepaid up front doesn't affect the effective yield all that much) and be forced to use that interest towards a car purchase?

Even if it was 1.2% AND a Mercedes over a 5 year period, that would only make it a warm offer, as you can get 5 year CD yields in the low-mid 2% range right now.The bank didn't really want anyone to take advantage of the offer, they just wanted the free marketing, which seems to be working well. Pretty clever actually.

This offer is insulting.

rezzor said:   I went for their other less poplular small timer deal of a Free 1971 Ford Pinto when you open a $25K 5 yr CD.
You'll get the million $ from ford when your pinto explodes

And even worse is none have sticks

where do you find the penfed 5% CD. I see it 1.99% only

I wish it were a 2006 crown vic.

uutxs said:   jkimcpa said:   ironfist99 said:   In for 250.JCarterVA???
LOL! Strangely, ironfist99 edited out the message.OK somebody sift through ironfist99 posts and cross reference in the JCarterVA thread...

Sounds like a perfect scheme to collect money legally, albeit immorally.

LongDongSilver said:   FDIC will cover you up to $250,000. Good luck with the remaining $750,000 if the bank goes under.

Hard pull?

absolutiza said:   lazybummm said:   LOL, with $1 Million cash, I can turn it into a nicer Mercedes every year, say a conservative 7% return

If you could guarantee a "conservative" 7% return without volatility(as it sounds like you are saying), you should probably start your own hedge fund and drive ferraris instead of mercedes. And you know there is this thing called taxes right?

The 7% he is referring to is not necessarily in conservative investments: rather I believe he was referring to a 'conservative estimate of 7% average annual return. It is not hard to earn 7% on investments, especially with a 1 million dollar brokerage account.

And preferred stocks offer 6-8% right now, albeit with some volatility, however, barring another financial meltdown in the financial industry, preferred shares are a relatively good spot place for a portion of your $1,000,000, but with some volatility.

caramelito said:   I wish it were a 2006 crown vic.

'06 is for chumps. '96 is where it's at!

PatrickM213 said:   absolutiza said:   lazybummm said:   LOL, with $1 Million cash, I can turn it into a nicer Mercedes every year, say a conservative 7% return

If you could guarantee a "conservative" 7% return without volatility(as it sounds like you are saying), you should probably start your own hedge fund and drive ferraris instead of mercedes. And you know there is this thing called taxes right?

What if you sold the car for say 50k

Wouldn't your gross ROI be 6.2%?huh? Getting $50K on your $1MM investment over 5 years is 1% per year.

LawDawgAtl said:   omahagreg said:   The 7% he is referring to is not necessarily in conservative investments: rather I believe he was referring to a 'conservative estimate of 7% average annual return. It is not hard to earn 7% on investments, especially with a 1 million dollar brokerage account.Really, it is not hard to earn 7% on investments over a 5 year period? Over the past 5 years S&P500 has averaged about 1.10%/year. Do I even need to mention how silly it is to compare FDIC insured guaranteed rate to a potential return in equities?

And preferred stocks offer 6-8% right now, albeit with some volatility, however, barring another financial meltdown in the financial industry, preferred shares are a relatively good spot place for a portion of your $1,000,000, but with some volatility.Right, with a potential swing in their value higher than 6%-8%, which means that your net return can easily be negative, especially over a 5 year period. I won't even mention the fact that people who need to keep their principal safe through FDIC insured vehicles have no business even considering equities.

I switched to preferred shares and Inflation Protection Treasuries about 5 years ago for my fixed income portion of my portfolio. That has given me an average annual return just north of 7% (while my other equities have returned about 3% including dividends). I do not consider FDIC insured investments 'safe' as they lose money every year after inflation and taxes. So while I agree equities have not been a stellar place to put money in the last 5 years, it is silly NOT to compare bank investment rates to equity rates. Additionally, preferreds are a hybrid equity, more like a high yielding bond trading on a stock exchange.

I am not recommending any specific investment to anyone, however I was clarifying what a previous poster stated: one can expect a much higher return than is offered by the subject of this forum, and a properly balanced portfolio of $1 million should return at least 7% over the long haul.

And those that want to lock in low guaranteed returns in FDIC insured investments can lock in a rate around 1.7% today.

uutxs said:   Wonder if they will allow the prepaid interest to be applied towards a used Crown Vic. Could get 20 or more of them!
It is obvious, you must own a taxi business.

SUCKISSTAPLES said:   rezzor said:   I went for their other less poplular small timer deal of a Free 1971 Ford Pinto when you open a $25K 5 yr CD.
You'll get the million $ from ford when your pinto explodes

Don't forget the privilege to use the Ford Pinto bumper sticker:

"Go ahead! Hit me and we blow up together!"

My boss might like this. Passed it on.