Question About Car Down Payments

[HIMBOB]

Perfectly reasonable question. I still have my college debt but I'm also not paying rent at the place I'm living at because I work from there. So I wouldn't be struggling to make ends meet every month with a car note. My credit card debt is pretty low and I don't have any other expenses (child support, alimony, medical bills)

Worse comes to worse, I'll keep my current car and just ride it til the wheels fall off. But I like having options

What interest are you paying on your college debt?


Australia has a really good government loan program for tertiary study, I pay 1.9% on my uni loans and earn 2.5% on my savings account. After tax I lose out but it's worth it for flexibility.

 

[HIMBOB]

It won’t lower his monthly note, I should have been more clear.

But the amount thrown straight to principle does more damage on the total number of months you have to pay out, knocking interest out and overall paying less total for the course of the loan.

Not always!!!!!!!!

Be careful.

It's not uncommon for the interest payable to be locked in on car loans.

It's a complete fucking scam that a few people I know have been tricked into. Totally legal but dodgy as fuck.

Say you borrow $20k and the total of repayments is $28k over 4 years.
If you pay off $10k early you still have to pay out another $18k, saving you exactly no money in interest.

Be sure to ask what happens if you make early or extra repayments.

 

[90 50]

Not always!!!!!!!!

Be careful.

It's not uncommon for the interest payable to be locked in on car loans.

It's a complete fucking scam that a few people I know have been tricked into. Totally legal but dodgy as fuck.

Say you borrow $20k and the total of repayments is $28k over 4 years.
If you pay off $10k early you still have to pay out another $18k, saving you exactly no money in interest.

Be sure to ask what happens if you make early or extra repayments.

Yeah I know that’s why I said “if you can”

Some damn mortgages are getting like that too I’ve heard.

 

[badascan]

buy a vehicle you can afford... you've made questionable financial decisions already... why continue to go into debt then be stuck? just because every other moron does it doesn't mean you have to...

 

[Deleted member 409801]

sounds a little high for a 20k financing

Maybe.....depends on the guys credit. Either way , you ain't getting in a 2019 Tacoma for 350 bucks a month without putting 10 grand down or so. Maybe base / stripped down / single cab/ 2 wheel drive/ something an uber frugal 68 year old Asian man would drive model excluded.

 

[Brother Numsi]

Maybe.....depends on the guys credit. Either way , you ain't getting in a 2019 Tacoma for 350 bucks a month without putting 10 grand down or so. Maybe base / stripped down / single cab/ 2 wheel drive/ something an uber frugal 68 year old Asian man would drive model excluded.

My credit score is in the low 700s so it's pretty good not great. As far as Tacoma's go, I wasn't planning on getting a brand new one if I went that route. Like I said, just weighing all the options.

 

[Brother Numsi]

Why the lease hate?

I have leased before and it works out really well.

A couple benefits

1. Never deal with major (expensive) problems like transmission, timing chains, brakes, or anything beyond oil changed really

2. Peace of mind knowing that my woman will never be stranded in a mall parking lot with a dead battery or on the side of the road with a busted trans.

3. It’s like a long term rental and I don’t really care about the car

4. Cars with high resale value have a high residual value which means in some cases a lease can be really cheap on a great car because I’m paying difference between the lease price and the residual value

Exactly. There are pros and cons to any financial decision. Some people on here acting like I'm trying to get a Benz or BMW.

 

[kahiljabroni]

Finally an actual question. Damn...lol

I was thinking about getting a 2019 Honda Accord. Good gas mileage and affordable. I was also looking at the Toyota Tacoma

Great car but I wouldn't buy new. I just bought a 14 with 20k miles for 14000$...basically half price and barely broke in

 

[Brother Numsi]

Great car but I wouldn't buy new. I just bought a 14 with 20k miles for 14000$...basically half price and barely broke in

You talking about the Honda Accord, right?

 

[Lord_Impaler]

Leasing is a good idea if you're stupid.

Some of the deals that come up for leasing make it worth it to lease. I have a new 2018 Ram 1500 extended cab....0$ down 199 per month, three year lease. That’s pretty damn cheap for a new truck.

 

[DoctorTaco]

So I plan on getting a new whip this year probably in the later Spring. I have a good idea what kind of car I plan on getting (feel free to offer any suggestions anyway) I was thinking about putting down a few grand for a down payment on my vehicle so the monthly costs won't be as high.

But my buddy says to me that down payments on cars are pointless because it really doesn't decrease your monthly payments and if it does it would only be by like 30 dollars or something to that nature. He's bought way more cars than I have so I'm kind of taking his word for it. I only bought one car and I paid for it flat out with no monthly payments.

You guys agree with my boy about car leasing? Yay or Nay? Oh and the car or truck I plan on purchasing will probably be in the 25k-35k range so nothing fancy. I'm still paying student loans and shit LOL

Call me crazy, but why not just spend 4-5k on a decent used car so that you own it and aren’t wasting money on interest?

 

[Brother Numsi]

Call me crazy, but why not just spend 4-5k on a decent used car so that you own it and aren’t wasting money on interest?

Crazy

 

[Pure Peace]

Since i deduct is as a business expense, ive leased my past 6 cars.

In certain situations, leasing is preferrable.

 

[Jim Cozad Jr.]

You should put down as little as possible or nothing with interest rates so low, assuming you have decent credit...

 

[DoctorTaco]

Since i deduct is as a business expense, ive leased my past 6 cars.

In certain situations, leasing is preferrable.

im curious about this- I’m an independent contractor who works as a striking coach and pad holder. I filed W-9s for the few gyms I teach at and then I meet people at their gyms or homes to work with them. I wonder if I could do the same thing and write off a lease like that

 

[MoFracky]

I've scanned the replies. I agree with the ones that describe avoiding going into debt with a car purchase.

My advise is find a used vehicle in the price range that allows you to buy it outright. Drive a piece of shit, and work toward eliminating existing debt, building your bank account, and having a 6-12 month emergency fund. Once all of that is in place then you might be in position to deal with a car loan. But, people that live debt free and have substantial savings (etc) plus an emergency fund are typically living a "personal finance life style" that doesn't involve car payments.

Also, the op sounds young and there maybe no helping him. Seriously.

 

[HunterSdVa29]

the main drawback from leases, AFAIK, is the mileage restriction

 

[Midnighter]

Some of the deals that come up for leasing make it worth it to lease. I have a new 2018 Ram 1500 extended cab....0$ down 199 per month, three year lease. That’s pretty damn cheap for a new truck.

That's cool, do you not plan on owning it?

 

[Brother Numsi]

I've scanned the replies. I agree with the ones that describe avoiding going into debt with a car purchase.

My advise is find a used vehicle in the price range that allows you to buy it outright. Drive a piece of shit, and work toward eliminating existing debt, building your bank account, and having a 6-12 month emergency fund. Once all of that is in place then you might be in position to deal with a car loan. But, people that live debt free and have substantial savings (etc) plus an emergency fund are typically living a "personal finance life style" that doesn't involve car payments.

Also, the op sounds young and there maybe no helping him. Seriously.

No, I'm not young. If I was, I probably wouldn't be looking for feedback for getting a vehicle on a MMA Forum. I probably would have just gone out and bought a whip and showed pictures of my new car on here. I haven't bought anything yet and there's a good chance I might hold off or go through with it when the time comes. Do you really think if I was that far in debt I would consider buying a new car?! That's just asinine

Thanks for your input though

 

[kahiljabroni]

You talking about the Honda Accord, right?

Yeh the accord. An accord is just a-b transportation and you can get killer deals like mine so never buy new. The Tacoma resale is absurdly high..u get almost no discount for buying used so might as well buy new