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dallastiger55 
LSU Fan
Fort Worth, TX
Member since Jan 2010
1868 posts
| thoughts on down payment for new car (Posted on 12/4/12 at 5:12 pm)
ok guys need some advice
looking for a new car(new as in new to us), could be brand new or less than 30k miles
we've saved about 3,500 and ive heard two arguments on putting money down, half say to do it, half say dont
what say you??
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schexyoung
LSU Fan
Deaf Valley
Member since May 2008
2565 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 5:24 pm to dallastiger55)
Depending on your credit score and debt-to-income ratio you might not have a choice.
Most will require some amount of down payment. If you can get an interest rate <1.0% then I would consider lowering the DP if you need the money now.
There are alot more variables surronding your personal finances that will affect the monthly payment that is best for you.
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TheHiddenFlask 
Clemson Fan
The Welsh red light district
Member since Jul 2008
16383 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 5:42 pm to dallastiger55)
quote:
we've saved about 3,500
quote:
for new car
Is that your total savings or specified savings for a car down payment.
Either way, you probably can't afford a brand new car. In the latter, you definitely can't.
ETA: What ever happened with this?
LINK
This post was edited on 12/4 at 5:46 pm
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dallastiger55
LSU Fan
Fort Worth, TX
Member since Jan 2010
1868 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 5:47 pm to TheHiddenFlask)
3,500 is JUST for new car
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OTIS2
LSU Fan
NoLA
Member since Jul 2008
18513 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 5:49 pm to dallastiger55)
Pay down. Financing a vehicle, while for many is a necessity, is still a bad investment. Pay down to reduce interest expense, and work toward the ability to complete a cash purchase in the future.
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dallastiger55
LSU Fan
Fort Worth, TX
Member since Jan 2010
1868 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 5:53 pm to OTIS2)
my perfect world would be a slightly used 1-2 year old car with under 30k miles
i dont want to buy new, problem is that the two cars we want- Acadia and Pathfinder both have new body styles for 2013 and i dont want it outdated already
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OTIS2
LSU Fan
NoLA
Member since Jul 2008
18513 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 5:59 pm to dallastiger55)
 Keep up with style, or set it , later in life. I drive a 2001 Chevy 4x4 with 226,000 miles on it to hunt and knock about town. I drive a 2012 Audi A8L, tricked out like a mofo, the rest of the time. I'm over 50...the splurge was my choice. (and I paid cash for both). buy used...pay it off ASAP , and build for your cash purchase by saving the monthly payments even after you've paid the current vehicle mortgage. Don't worry about style issues until you can afford to do so. 
This post was edited on 12/4 at 6:01 pm
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dallastiger55
LSU Fan
Fort Worth, TX
Member since Jan 2010
1868 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 6:29 pm to OTIS2)
Hidden flask
Got an update coming soon, been meaning to do it. Stay tuned
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LSUBrad5277
LSU Fan
North Louisiana
Member since Jan 2011
8225 posts
 Online
| re: thoughts on down payment for new car (Posted on 12/4/12 at 7:39 pm to dallastiger55)
I always pay the TT&L and then usually put 10% downpayment. otal usually is between $6000-7000 total payment at time of purchase.
TT&L=$2700.
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MoreOrLes
LSU Fan
Member since Nov 2008
14913 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 7:55 pm to dallastiger55)
BUY USED
PAY CASH
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jso0003 
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4456 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 9:25 pm to OTIS2)
quote:
Pay down. Financing a vehicle, while for many is a necessity, is still a bad investment. Pay down to reduce interest expense, and work toward the ability to complete a cash purchase in the future.
Buying a car isn't an " investment"
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OTIS2
LSU Fan
NoLA
Member since Jul 2008
18513 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 9:32 pm to jso0003)
Poor word choice...insert what you like...
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jso0003
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4456 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 9:45 pm to OTIS2)
quote:
Poor word choice...insert what you like...
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OTIS2
LSU Fan
NoLA
Member since Jul 2008
18513 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 9:46 pm to jso0003)
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jso0003
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4456 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 9:56 pm to OTIS2)
I drive a used car paid for in cash also, but I don't think there is anything wrong with financing a car as long as you could easily liquidate something and pay it off if the need arose without digging into a retirement acct or something like that.
For example If I have 50k to spend on a car why should I pay cash when I can finance it out over 5 years and put that 50k to work with a reasonable amount of risk in something I can easily liquidate as the need arises.
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Siderophore
LSU Fan
Member since Nov 2010
3334 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 10:02 pm to jso0003)
I think the intelligent use of credit is such a rare quality nowadays.
You either see the folks who abuse it and become swamped by debt, or the ones who are zealously over conservative and refuse to use anything other than cash.
Especially now, with as low rates are...
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OTIS2
LSU Fan
NoLA
Member since Jul 2008
18513 posts
| re: thoughts on down payment for new car (Posted on 12/4/12 at 10:05 pm to jso0003)
Rates are cheap, but I can't see paying interest to acquire a depreciating asset, if it is avoidable.
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