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Better to finance $31,800k at 4.19% or $35,100 at 0%?
Posted on 4/15/19 at 2:27 pm
Posted on 4/15/19 at 2:27 pm
If my math is correct, it would be about $200 cheaper to take the 0%. But my question would be is it worth it to try to refinance the lesser amount at a lower interest rate? Or would that be a gamble?
My wife and I both have credit scores around 750.
Speaking in terms of an auto loan.
My wife and I both have credit scores around 750.
Speaking in terms of an auto loan.
7
Posted on 4/15/19 at 2:45 pm to hendersonshands
Assuming equal terms, you are correct ~$203.
Will you be upside down on the loan if borrowing $35,100? If so you need to think of GAP insurance, which could cost $650-1000 defeating the purpose.
There is usually a fee to refinance ~$100. Maybe get pre-approved else ware for lower then the %4.19, get full disclosure of the new lein holder refinance fee and do some math opposed to making assumption of the availability of a lower rate
Will you be upside down on the loan if borrowing $35,100? If so you need to think of GAP insurance, which could cost $650-1000 defeating the purpose.
There is usually a fee to refinance ~$100. Maybe get pre-approved else ware for lower then the %4.19, get full disclosure of the new lein holder refinance fee and do some math opposed to making assumption of the availability of a lower rate
Posted on 4/15/19 at 3:17 pm to hendersonshands
quote:
or $35,100 at 0%?
how is this even arguable?
Posted on 4/15/19 at 4:09 pm to hendersonshands
Assuming, that’s the choice from a dealership. How many years? At 5, it’s pretty much a wash if you plan to payoff in 5 years. If like 4 years, take the $31k
Posted on 4/15/19 at 5:03 pm to hendersonshands
Why would you want to put any amount down at all if you can finance for 0%? Unless you are simply worried about being more in debt
Posted on 4/15/19 at 5:48 pm to hendersonshands
Not exactly sure what you mean by “cheaper” but,
Car A ($31,800) cost $3,300 less than car B.
4.19% loan on car A has a total expense of about $3,500 over the life of a five year loan vs zero (minus fees) of car B.
Over the course of 5 years you’d be better off with the nicer car IMO if you truly can’t finace the $31,800 at 0% too.
Car A ($31,800) cost $3,300 less than car B.
4.19% loan on car A has a total expense of about $3,500 over the life of a five year loan vs zero (minus fees) of car B.
Over the course of 5 years you’d be better off with the nicer car IMO if you truly can’t finace the $31,800 at 0% too.
Posted on 4/16/19 at 12:00 am to hendersonshands
You are overthinking. 0%. You owe nothing in interest. The other one, you lose money.
Posted on 4/16/19 at 10:03 am to hendersonshands
You really should look at Credit Union rates as opposed to financing through a dealership. If you, or had anyone in your family serve in the military USAA has rates around 3.500% and some Credit Unions are even lower than that.
A new vehicle at 4.19% rate, with your credit score is on the higher spectrum. Sounds like the dealership is holding a half a point, or a full point of APR on you.
A new vehicle at 4.19% rate, with your credit score is on the higher spectrum. Sounds like the dealership is holding a half a point, or a full point of APR on you.
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