GT500 Financing
1/5/10, 01:40 PM
#21
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1/5/10, 04:42 PM
#22
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I took my loan for 72 months, for several reasons. 1st, the payment is only $230 a month (because I got D-Plan and put down $15,000 in cash), of which I have paid $250 each month since my 1st payment was due back in March 2006. Since I pay extra each month, my payoff now is very very low. It will be paid off VERY soon!!!
Also, I didn't want a high car payment, like others in case something comes up that requires extra money (like the medication I take for my liver transplant, which costs me almost $200 a month alone). Plus I have a part mortgage on a house I bought with my sister. I pay a portion and I wanted a low payment due to the house payment.
Back in 2006, I wanted my car, as I almost died waiting for a transplant back in October 2003, and once I got better, I realized things can end for ANYONE at ANYTIME! Don't wait to do something you want to do, as you may never get the chance! So when I bought my car, I wasn't "upside down" like some are with car loans since I put down ALOT of money upfront. I didn't hesitate to finance it for 72 months. I'm keeping it for as long as I'm around!!
And lastly, a side note. Please do what Karman says, and don't kill the dreams of others on here who want a Shelby (or whatever automobile), and have to finance it longer than your recommend ideas. Personally, if you ask me, you sound like you have a SERIOUS chip on your shoulder. Leave others alone when it comes to what they want to do with their money. Its their money and their dreams!!
Last edited by 05fordgt; 1/5/10 at 04:48 PM.
1/5/10, 04:43 PM
#23
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"You can't handle the truth."
The truth is that you and I are blessed individuals that can afford whatever we need and then some.
To put down people that are not quite as well off, (which is what you are doing) is callous.
Please grow a heart.
You are a lucky young man with a good job and a keen mind.
Don't screw it up by being insensitive to other people's dreams.
When you are older you may understand better what I am getting at.
The truth is that you and I are blessed individuals that can afford whatever we need and then some.
To put down people that are not quite as well off, (which is what you are doing) is callous.
Please grow a heart.
You are a lucky young man with a good job and a keen mind.
Don't screw it up by being insensitive to other people's dreams.
When you are older you may understand better what I am getting at.
1/5/10, 07:18 PM
#24
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Forgive me for trying to help people not financially ruin themselves. A good rule of thumb is the MSRP of the car should not be more than 1/3 of your gross yearly income. The only reason to take a 72 month loan is if it is 0% APR. Otherwise that "killer $25k X-plan price" comes out to $32k after interest in 6 years. Ripoff.
1/5/10, 09:19 PM
#25
Tasca Super Boss 429 Member
Sometimes it's worth paying more in the long run to get what you want. I wanted a cheaper payment, so Jeff gave me all the number on a lease 2 years ago, and I did the math. I could finance and have a $500 payment, or lease for 2 years with a $300 payment then buy it at the end with around a $400 payment. In the end I may pay a little more, but it made the car more affordable each month.
1/5/10, 10:16 PM
#26
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I'll have to agree with eci on this...
a 7 year loan... on a car. Said aloud it just doesn't make sense. (unless of course 0% which you'll never see.)
Interest wise, you get took SOOOO bad... many times 15-20% of the vehicle's worth added to msrp.
I can see a 4-5 for the 'give it to me now, i'll pay a lil more...' aspect
but 7... ehh... you're reachin
The car's value will be substantially less than what it's worth with inflation, not to mention it depreciates so rapidly, that you'll never have any equity in the car. For typically it'll lose 1/3 it's value as soon as you drive it home. Not only that, you'll be throwing away $8,000 alone in interest...
(using the 4.74% rate... of which you'll probably have to have God's credit score to obtain...).
Dealers love 7+ years. It cuts down on the monthly payment to the consumer, but boosts the sales in the long run. And say god forbid you want to update your car in 5 years, but you have this 7 year loan... your balance on the loan is bigger than the value of the vehicle securing it... so you'll have that compiled on top of it...
So I mean, what's worth more to you? Having an allotment of 8k over 7 years ($1150/year)- of which it's future value and purchasing power will be more of 8.5-9k. Or buying that car NOW as opposed to say waiting a year... having a $630 bill every month for 7 years... of which a year's payments will go to paying the interest alone. If pissing away 8+k means nothing to you, then I do recommend the 7 year loan.
but typically 7 year car loans... are bad on the consumer end. Of course some and many can work out... but the math and the numbers... you get took so bad... You buy a 45k car you pay 53 (that's with that 84 month, 4.74%. rate said before) realistically look at 7-8%.
at 7.5% you'll pay an extra 13k in interest... Shot, I'd rather flush the money down the toilet. That way at least some of it might come back up...
Plus I mean with this logic, once this year (2010) ends... you'll be owing your 2003 mustang...
when meanwhile you can peck one off for for it's present day price. A year or 2 down the line...
It's worth it in many cases to wait an extra year, or some additional time frame to lower the monthly period.
Buy what you can afford. If you stay up at night, crunching the numbers and saying what you can live without and what you can cut down on in order to buy it... chances are you can't afford it yet.
Also, a lot of you give eci a bad rap, but he's just very curt and real, just as anyone else...
He said nothing wrong... I find some of his posts on other threads I'm in agreement too.
Just my 2 cents.
a 7 year loan... on a car. Said aloud it just doesn't make sense. (unless of course 0% which you'll never see.)
Interest wise, you get took SOOOO bad... many times 15-20% of the vehicle's worth added to msrp.
I can see a 4-5 for the 'give it to me now, i'll pay a lil more...' aspect
but 7... ehh... you're reachin
The car's value will be substantially less than what it's worth with inflation, not to mention it depreciates so rapidly, that you'll never have any equity in the car. For typically it'll lose 1/3 it's value as soon as you drive it home. Not only that, you'll be throwing away $8,000 alone in interest...
(using the 4.74% rate... of which you'll probably have to have God's credit score to obtain...). Dealers love 7+ years. It cuts down on the monthly payment to the consumer, but boosts the sales in the long run. And say god forbid you want to update your car in 5 years, but you have this 7 year loan... your balance on the loan is bigger than the value of the vehicle securing it... so you'll have that compiled on top of it...
So I mean, what's worth more to you? Having an allotment of 8k over 7 years ($1150/year)- of which it's future value and purchasing power will be more of 8.5-9k. Or buying that car NOW as opposed to say waiting a year... having a $630 bill every month for 7 years... of which a year's payments will go to paying the interest alone. If pissing away 8+k means nothing to you, then I do recommend the 7 year loan.
but typically 7 year car loans... are bad on the consumer end. Of course some and many can work out... but the math and the numbers... you get took so bad... You buy a 45k car you pay 53 (that's with that 84 month, 4.74%. rate said before) realistically look at 7-8%.
at 7.5% you'll pay an extra 13k in interest... Shot, I'd rather flush the money down the toilet. That way at least some of it might come back up...
Plus I mean with this logic, once this year (2010) ends... you'll be owing your 2003 mustang...
when meanwhile you can peck one off for for it's present day price. A year or 2 down the line...
It's worth it in many cases to wait an extra year, or some additional time frame to lower the monthly period.
Buy what you can afford. If you stay up at night, crunching the numbers and saying what you can live without and what you can cut down on in order to buy it... chances are you can't afford it yet.
Also, a lot of you give eci a bad rap, but he's just very curt and real, just as anyone else...
He said nothing wrong... I find some of his posts on other threads I'm in agreement too.
Just my 2 cents.
1/6/10, 06:43 AM
#27
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I'll have to agree with eci on this...
a 7 year loan... on a car. Said aloud it just doesn't make sense. (unless of course 0% which you'll never see.)
Interest wise, you get took SOOOO bad... many times 15-20% of the vehicle's worth added to msrp.
I can see a 4-5 for the 'give it to me now, i'll pay a lil more...' aspect
but 7... ehh... you're reachin
The car's value will be substantially less than what it's worth with inflation, not to mention it depreciates so rapidly, that you'll never have any equity in the car. For typically it'll lose 1/3 it's value as soon as you drive it home. Not only that, you'll be throwing away $8,000 alone in interest... (using the 4.74% rate... of which you'll probably have to have God's credit score to obtain...).
Dealers love 7+ years. It cuts down on the monthly payment to the consumer, but boosts the sales in the long run. And say god forbid you want to update your car in 5 years, but you have this 7 year loan... your balance on the loan is bigger than the value of the vehicle securing it... so you'll have that compiled on top of it...
So I mean, what's worth more to you? Having an allotment of 8k over 7 years ($1150/year)- of which it's future value and purchasing power will be more of 8.5-9k. Or buying that car NOW as opposed to say waiting a year... having a $630 bill every month for 7 years... of which a year's payments will go to paying the interest alone. If pissing away 8+k means nothing to you, then I do recommend the 7 year loan.
but typically 7 year car loans... are bad on the consumer end. Of course some and many can work out... but the math and the numbers... you get took so bad... You buy a 45k car you pay 53 (that's with that 84 month, 4.74%. rate said before) realistically look at 7-8%.
at 7.5% you'll pay an extra 13k in interest... Shot, I'd rather flush the money down the toilet. That way at least some of it might come back up...
Plus I mean with this logic, once this year (2010) ends... you'll be owing your 2003 mustang...
when meanwhile you can peck one off for for it's present day price. A year or 2 down the line...
It's worth it in many cases to wait an extra year, or some additional time frame to lower the monthly period.
Buy what you can afford. If you stay up at night, crunching the numbers and saying what you can live without and what you can cut down on in order to buy it... chances are you can't afford it yet.
Also, a lot of you give eci a bad rap, but he's just very curt and real, just as anyone else...
He said nothing wrong... I find some of his posts on other threads I'm in agreement too.
Just my 2 cents.
a 7 year loan... on a car. Said aloud it just doesn't make sense. (unless of course 0% which you'll never see.)
Interest wise, you get took SOOOO bad... many times 15-20% of the vehicle's worth added to msrp.
I can see a 4-5 for the 'give it to me now, i'll pay a lil more...' aspect
but 7... ehh... you're reachin
The car's value will be substantially less than what it's worth with inflation, not to mention it depreciates so rapidly, that you'll never have any equity in the car. For typically it'll lose 1/3 it's value as soon as you drive it home. Not only that, you'll be throwing away $8,000 alone in interest...
(using the 4.74% rate... of which you'll probably have to have God's credit score to obtain...). Dealers love 7+ years. It cuts down on the monthly payment to the consumer, but boosts the sales in the long run. And say god forbid you want to update your car in 5 years, but you have this 7 year loan... your balance on the loan is bigger than the value of the vehicle securing it... so you'll have that compiled on top of it...
So I mean, what's worth more to you? Having an allotment of 8k over 7 years ($1150/year)- of which it's future value and purchasing power will be more of 8.5-9k. Or buying that car NOW as opposed to say waiting a year... having a $630 bill every month for 7 years... of which a year's payments will go to paying the interest alone. If pissing away 8+k means nothing to you, then I do recommend the 7 year loan.
but typically 7 year car loans... are bad on the consumer end. Of course some and many can work out... but the math and the numbers... you get took so bad... You buy a 45k car you pay 53 (that's with that 84 month, 4.74%. rate said before) realistically look at 7-8%.
at 7.5% you'll pay an extra 13k in interest... Shot, I'd rather flush the money down the toilet. That way at least some of it might come back up...
Plus I mean with this logic, once this year (2010) ends... you'll be owing your 2003 mustang...
when meanwhile you can peck one off for for it's present day price. A year or 2 down the line...
It's worth it in many cases to wait an extra year, or some additional time frame to lower the monthly period.
Buy what you can afford. If you stay up at night, crunching the numbers and saying what you can live without and what you can cut down on in order to buy it... chances are you can't afford it yet.
Also, a lot of you give eci a bad rap, but he's just very curt and real, just as anyone else...
He said nothing wrong... I find some of his posts on other threads I'm in agreement too.
Just my 2 cents.
And to let you know, we DON'T do 7 year financing here at work. 72 months (6 years) is our limit.
1/6/10, 06:46 AM
#28
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Forgive me for trying to help people not financially ruin themselves. A good rule of thumb is the MSRP of the car should not be more than 1/3 of your gross yearly income. The only reason to take a 72 month loan is if it is 0% APR. Otherwise that "killer $25k X-plan price" comes out to $32k after interest in 6 years. Ripoff.
1/6/10, 07:19 AM
#29
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Just curious, but why is everyone so wrapped up in the financial details here?? The guy wants a GT500... Once he gets it, he'll prob keep it for a while (10+ years?). I know I wouldn't get rid of it.
If that's the case what does it matter what it's worth in 4 years? 6? 10?
Just get it an enjoy it! That's what they were made for...
If that's the case what does it matter what it's worth in 4 years? 6? 10?
Just get it an enjoy it! That's what they were made for...
1/6/10, 09:00 AM
#30
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Just curious, but why is everyone so wrapped up in the financial details here?? The guy wants a GT500... Once he gets it, he'll prob keep it for a while (10+ years?). I know I wouldn't get rid of it.
If that's the case what does it matter what it's worth in 4 years? 6? 10?
Just get it an enjoy it! That's what they were made for...
If that's the case what does it matter what it's worth in 4 years? 6? 10?
Just get it an enjoy it! That's what they were made for...
1/6/10, 09:53 AM
#31
MOTM Committee Member
Just curious, but why is everyone so wrapped up in the financial details here?? The guy wants a GT500... Once he gets it, he'll prob keep it for a while (10+ years?). I know I wouldn't get rid of it.
If that's the case what does it matter what it's worth in 4 years? 6? 10?
Just get it an enjoy it! That's what they were made for...
If that's the case what does it matter what it's worth in 4 years? 6? 10?
Just get it an enjoy it! That's what they were made for...
1/6/10, 10:26 PM
#32
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Forgive me for trying to help people not financially ruin themselves. A good rule of thumb is the MSRP of the car should not be more than 1/3 of your gross yearly income. The only reason to take a 72 month loan is if it is 0% APR. Otherwise that "killer $25k X-plan price" comes out to $32k after interest in 6 years. Ripoff.
1/7/10, 07:00 AM
#33
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hehe... I resemble that.. Bought my 05 Focus new in 04, and since it has been paid off have been saving up for an 11 or 12 Mustang.
Last edited by Coupe66US; 1/7/10 at 07:02 AM.
1/7/10, 09:13 AM
#34
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1/7/10, 10:24 AM
#35
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Hey Mike, he won't get it. Plus, his calculations he used for the numbers he posted were using an 8.25% rate or something like that. WAY TOO HIGH in todays times. I know I can get someone a 6% rate or there about for 72 months. But whatever we all say, ECI always will be right and we'll be wrong.
1/7/10, 11:23 AM
#36
Mach 1 Member
ECI may be confused. The intrest calculation he is referring to is an "add on interest " calculation that is used by banks/finance companies to collect the interest up front typically on a house. I.E first payment of a 72 month loan is 1/72 principal ($10 of a $720/mo payment) and 71 parts interest ($710).
If a loan company used this method to finance cars, I'd NEVER finance one!!! The calc auto loans is usually calculated on doubles the interest rate but not to this extent. Example $10 K loan at 6% should be 10600. It actually turns out to be $11200 or 12% due to the interest calculation. This is an over simplification but it works.
The way to cut the loan term period in half (sometimes) is to pay extra during the initial periods to reduce the amount of principal the loan is calculated on.
It's a smart move if the loan is more than you can afford. It keeps the monthly down and gives you the option to pay extra to reduce the time frame of the loan. But the required monthly payment is not going to put you in the poor house. So take the extended period loan..just pay more early in the loan each month, if you can. This method is not as effective for auto loans, at least the one's I'm used to, but it helps.
If a loan company used this method to finance cars, I'd NEVER finance one!!! The calc auto loans is usually calculated on doubles the interest rate but not to this extent. Example $10 K loan at 6% should be 10600. It actually turns out to be $11200 or 12% due to the interest calculation. This is an over simplification but it works.
The way to cut the loan term period in half (sometimes) is to pay extra during the initial periods to reduce the amount of principal the loan is calculated on.
It's a smart move if the loan is more than you can afford. It keeps the monthly down and gives you the option to pay extra to reduce the time frame of the loan. But the required monthly payment is not going to put you in the poor house. So take the extended period loan..just pay more early in the loan each month, if you can. This method is not as effective for auto loans, at least the one's I'm used to, but it helps.
Last edited by 825LTRGT; 1/7/10 at 11:33 AM.
1/7/10, 12:08 PM
#37
Legacy TMS Member
I think people are going to pay what ever they think the car is worth to them and they will pay as long (36 -72mo)as they think its worth it to them. Which is not reterded! I think that is a novel way of thinking and more power to them. I could not have afforded my car if my intrest rate wasn't zero. <---- Good stuff. I did take out a 6 year loan tho.
1/7/10, 09:28 PM
#38
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I'm sorry but i love how the only action this board gets is when a few over-opinionated (albeit intelligent) people argue about:
1. God
2. Money
3. Politics
i guess at some point, this may actually be a mustang source as opposed to a forum of beat arguments
and to the guy who will inevitably reply, "well if you don't like it then why are you reading it?" please don't bother replying
1. God
2. Money
3. Politics
i guess at some point, this may actually be a mustang source as opposed to a forum of beat arguments
and to the guy who will inevitably reply, "well if you don't like it then why are you reading it?" please don't bother replying
1/8/10, 12:38 AM
#39
MOTM Committee Member
post more than six times before you start complaining about the forum. I don't care how long you've been lurking, you can't really complain unless you make a positive contribution yourself
