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re: Better to finance $31,800k at 4.19% or $35,100 at 0%?
Posted on 4/15/19 at 4:37 pm to good_2_geaux
Posted on 4/15/19 at 4:37 pm to good_2_geaux
quote:
The amount you put down doesn't make the vehicle cheaper. And maybe I'm misunderstanding your question, but a truck sold to you for $50,000 is a $50,000 truck whether you put $20,000 down and only finance $30,000 opposed to only putting $10,000 down and financing $40,000.
The only way to make a vehicle "cheaper" is to negotiate a lower selling price.
What?
If a vehicle is $35,100 and you put $5,100 down, the number financed would be $30,100 at whatever % interest. It would certainly make it cheaper. Generally every $1,000 you finance it is about $20. So if this dude put $5K down, he would roughly be saving $100 on his monthly payment.
My confusion (for OP) is, why would you finance @4.19% if you'd qualify for 0% at a higher amount? If this is for the same vehicle.
1
Posted on 4/15/19 at 5:00 pm to momentoftruth87
Im looking at this from a total out of pocket perspective, assuming the OP is doing the same.
If he/she finances for 60 months $31800 @ 4.19% rather than financing $35100 at 0%, the total out of pocket he spends on the loan is only about $203 different at the end of the 60 mths. (looking at the amortization of each option)
agreed
The vehicle still holds the same value was my point. The OP would have less over all out of pocket expense the more money he puts down when financing with an interest rate above 0%.
If he/she finances for 60 months $31800 @ 4.19% rather than financing $35100 at 0%, the total out of pocket he spends on the loan is only about $203 different at the end of the 60 mths. (looking at the amortization of each option)
quote:
If a vehicle is $35,100 and you put $5,100 down, the number financed would be $30,100 at whatever % interest
agreed
The vehicle still holds the same value was my point. The OP would have less over all out of pocket expense the more money he puts down when financing with an interest rate above 0%.
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