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Message
Car Loan Rate/Duration Options
Posted on 12/26/14 at 10:04 pm
Posted on 12/26/14 at 10:04 pm
2.3 for 60 months or 2.99 for 72?
Higher note with larger down payment or lower note and invest a majority of original downpayment
Higher note with larger down payment or lower note and invest a majority of original downpayment
5
Posted on 12/26/14 at 10:17 pm to Lsut81
(no message)
This post was edited on 12/26/14 at 10:57 pm
Posted on 12/27/14 at 6:55 am to Lsut81
I'm not paying any more than I have to for a down payment if they are lending me money at 2.3%, so small down payment and 5 year note.
Posted on 12/27/14 at 7:07 am to TheHiddenFlask
quote:
I'm not paying any more than I have to for a down payment if they are lending me money at 2.3%, so small down payment and 5 year note.
Im saying, would you put down even less and take the 2.9 for a 6yr, investing the difference in the downpayment, or just suck it up and do the 2.3@5yrs?
Posted on 12/27/14 at 7:09 am to TheHiddenFlask
Depends on value of car.....you don't want the loan to have an upside down point....ie, when the remaining value of the car is less than you owe on it. Go to bankrate.com and look at the auto loan calculators. Compare the whole picture: enter the loan values and get the detailed amortization schedule so you truly understand how much you owe at various points during the life of the loan.
If you are USAA eligible, they'll beat those quoted rates.
If you are USAA eligible, they'll beat those quoted rates.
Posted on 12/27/14 at 7:13 am to hungryone
quote:
Depends on value of car.....you don't want the loan to have an upside down point....
Won't be an issue
Just trying to get the boards opinion on those two options... If all other things remain the same.
Posted on 12/27/14 at 7:39 am to Lsut81
I don't know which one I would choose. I picked 5 years because I probably won't keep the vehicle 6 years and I don't want to have to do a note rollover. Keeping the payment a little lower would likely just mean that I spent the extra money, whereas shrinking my down payment would go immediately into a long term savings vehicle.
Posted on 12/27/14 at 7:42 am to TheHiddenFlask
quote:
Keeping the payment a little lower would likely just mean that I spent the extra money, whereas shrinking my down payment would go immediately into a long term savings vehicle.
Yeah, the extra $$$ not going to the down payment would immediately go into a retirement account. The monthly note would also be around 15-20% lower....
Posted on 12/27/14 at 8:25 am to Lsut81
If you're looking at 60 or 72 months for a car loan you are buying to much car. 3 year or 4 max is what car notes should be.
Posted on 12/27/14 at 8:34 am to Lsut81
Put as much down as you can, with the shortest duration loan, with the best interest rate.
Posted on 12/27/14 at 9:07 am to jacquespene8
quote:
If you're looking at 60 or 72 months for a car loan you are buying to much car. 3 year or 4 max is what car notes should be.
Why?
Posted on 12/27/14 at 9:08 am to Lsut81
My Daddy was a wise man and he told us, "do not buy a vehicle that you cannot pay for in 36 months".
So, between the two options go with 60 months.
So, between the two options go with 60 months.
Posted on 12/27/14 at 9:11 am to Blakely Bimbo
My daddy said don't finance a depreciating asset.
Posted on 12/27/14 at 9:13 am to Coach Guidry
Posted on 12/27/14 at 9:22 am to Coach Guidry
quote:
Why?
It just seems too long for me Coach. However, your insight into the car biz is greatly appreciated on this board. I would ask, have you ever financed your/family personal car for 60 or 72 months?
Posted on 12/27/14 at 9:22 am to Blakely Bimbo
quote:
Amortization schedules make me throw up.
If you can make 8% on the money in the market and the loan is only 3%, you are making 5% on that money and still paying your note
Also, vehicle could be bought with cash, but whats the point when rates are so low. Its not like its a 5 or 6% loan.
This post was edited on 12/27/14 at 9:24 am
Posted on 12/27/14 at 9:31 am to cuyahoga tiger
quote:
would ask, have you ever financed your/family personal car for 60 or 72 months?
I appreciate that. Yes, I have. With 0.9% or 1.9% rates. I will always pay up front for the TTL of course. Im just a strong believer of having cash ready for...well...life.
Posted on 12/27/14 at 9:34 am to Coach Guidry
Why put down 30-40 k in something that will lose 17% over the first year? Put 2-3k down for taxes...and have the rest ready to invest in something else. You can make more money elsewhere than throwing it all at a vehicle.
This post was edited on 12/27/14 at 9:35 am
Posted on 12/27/14 at 9:46 am to hungryone
quote:
My daddy said don't finance a depreciating asset.
I don't view a car as an asset. It is the cost of doing the business called life. Part of life is enjoyment.
Posted on 12/27/14 at 10:20 am to Coach Guidry
quote:
Why put down 30-40 k in something that will lose 17% over the first year? Put 2-3k down for taxes...and have the rest ready to invest in something else. You can make more money elsewhere than throwing it all at a vehicle.
Thoughts coach? 60 or 72?
Also, does thinking change if its not a new car?
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