jjflores Posted April 18, 2015 Report Share Posted April 18, 2015 Hi guys so I was doing a bit of thinking after recently purchasing a crossroad has anybody added up monthly payments to the term of the loan and added down payment and everything? Let's say I bought a car for 20,000 before taxes and fees after adding how much I put down and my monthly payments the car is gonna end up costing about 30,000 is this normal? this is my first new car so bare with me tia! Quote Link to comment Share on other sites More sharing options...
jkeaton Posted April 18, 2015 Report Share Posted April 18, 2015 (edited) That's easy enough to figure out with a calculator. I have not because it's always listed on the paperwork. Edited April 18, 2015 by jkeaton dhh3 1 Quote Link to comment Share on other sites More sharing options...
redtomatoman Posted April 18, 2015 Report Share Posted April 18, 2015 Financing costs more. Banks don't lend money for free. I try to never finance anything. Paid cash for my DJ. If I can't pay for something outright, I generally don't buy it. Of course, I did finance my house, but I'm paying that off 10 years early to save $$ in interest. Peace. dhh3 1 Quote Link to comment Share on other sites More sharing options...
dhh3 Posted April 18, 2015 Report Share Posted April 18, 2015 The only things I will buy on time are cars and a house. Everything else, I pay cash. I only use 1 credit card and pay it off each month. You have to figure in your finance rate, which is dependant on your credit score. Make sure that you closely watch the finance officer, because he will start adding things that you may not want. This is where the dealer makes money in kickbacks. When I purchased my DJ, the only option I added was my extended warranty. It is cheaper to do it this way than to wait until your factory warranty runs out. And, I didn't get the most expensive one and it kind of ticked him off. I wouldn't let him talk me into anything else. Paint protection, interior protection are a waste of money. af3ll and rolly 2 Quote Link to comment Share on other sites More sharing options...
silenze Posted April 18, 2015 Report Share Posted April 18, 2015 Next time ask these questions before you sign. Ask the finance guy. Bring a calculator. Dont sign something that you don't understand rolly and dhh3 2 Quote Link to comment Share on other sites More sharing options...
2late4u Posted April 19, 2015 Report Share Posted April 19, 2015 paid cash for my cars and also my house dhh3 1 Quote Link to comment Share on other sites More sharing options...
B4ZINGA Posted April 20, 2015 Report Share Posted April 20, 2015 A lot of factors are involved. Currently I have a 5 year loan on my 2014 R/T AWD. I financed 80% of the purchase price of my Journey, which I bought used two month after the previous owner took deliver (his wife wanted something bigger, so they traded it on a Grand Cherokee... his loss, my gain). After 5 years, I'll have paid $1130 in interest (1.99% rate) and still not be into it for anywhere near the MSRP... about $27,600. Less if I pay it off 6 months to a year early, as I intend to do. Paying cash will always benefit you in the short run, as you won't pay any interest to the bank and you own it right away, not being tied to a monthly note for several years. However, I don't mind financing. Financing establishes credit history and reliability to uphold my end of the loan agreement, which helps to obtain excellent financing for much larger purchases down the road, such as a house. FYI, I'm told 1.99% is among the best rates that you can get outside of special 0% financing incentives that manufacturers sometimes offer. If you have a higher rate (my old car was financed at 4.99%, when my old credit history was credit cards), then I would sit on it for a year or two and consider refinancing at something like a credit union, after that history of on-time payments is established. Big banks tend not to be competitive with credit unions. Quote Link to comment Share on other sites More sharing options...
ezyb Posted April 24, 2015 Report Share Posted April 24, 2015 The other thing to consider is whether you can use that cash to generate a better return than your financing cost. In these markets you should be able to generate significantly more than 2-3% by investing your money wisely. When you're dealing with a depreciating asset (i.e. a car) things can seem a little more complicated, but generally when someone is willing to lend you money at a crazy low rate you really should consider it long and hard vs losing the time value of cash - of course you always want to make your payments on time etc etc. Quote Link to comment Share on other sites More sharing options...
af3ll Posted April 29, 2015 Report Share Posted April 29, 2015 (edited) I just did this sort of math last night. The cost of my Journey will be around $26K and I'll be putting $5K down. I was pre-approved for 1.49% at 36 months, 2.5% at 60 months, and 2.49% at 72 months. Obviously your payment will be lower for 72 months but you'll be paying more interest. If I remember right I was paying about $1650 in interest for the 72 month loan, $1400 in interest for the 60 month loan, and $500 in interest for the 36 month loan. I'm still deciding between the 60 and 72 month. The reason is I don't know completely how my life will be when I move back stateside in August. I can also make bigger payments once I get settled and pay it off faster. Edited April 29, 2015 by af3ll Quote Link to comment Share on other sites More sharing options...
jjflores Posted April 29, 2015 Author Report Share Posted April 29, 2015 Thanks everyone for the response this is the kind if stuff that's going to make me a better purchaser in the future!!! Quote Link to comment Share on other sites More sharing options...
silenze Posted April 29, 2015 Report Share Posted April 29, 2015 Consider buying used. The journey depreciates Very quickly. Quote Link to comment Share on other sites More sharing options...
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