There is a $17,976 And 2019 car that I’m interested in getting. After fees like title and registration total goes to $19,396.42. IF I were to make a down payment of $5,000 my monthly would be $230 lowest for 72 months! (Doesn’t sound fair to me). If I were to make a 10% ($1,800) down payment my monthly would be $275 for 72 months. APR will be 3.9%. For those of you who are experienced buyers and good with numbers please tell me your input. I’m young and inexperienced but want to learn so I won’t get scammed haha. Salesman said if I go with the last option I can always pay more a month (if I want to) which will pay off the car faster and decrease the 72 months lease term.
Eva2020-04-01T19:27:28Z
You don't want to draw out the payments for 6 years. That's much too long. Find a car you can pay off in 4 years or less.
A 72 month car loan is really stupid . Take an adult that's financially smart to the car dealership with you. 😉Your post is confusing .Are you buying or leasing the car ?
Rates are always higher the longer the term & the less you pay down. Sounds like he has run you through 2 different lenders. Never would you put down more & have to pay more each month unless the rates are different. You can usually pay more like they said & reduce the term, but if you do, make sure you tell them each month that you want the extra amount applied to principal. Otherwise they just reduce it off the next payment amount.. So if your payment is $300.00 & you pay $350.00 you need to tell them to apply the extra $50.00 to principal. Otherwise they just apply it, and show your next payment due as $250.00 which doesn't cause the term to reduce...l
" good with numbers please tell me your input." You're overspending on a *want* instead of a need. If you can't afford to pay cash or at least have a much shorter term, then you need to look at cheaper options.
The salesman is doing exactly what car salesmen do. They are figuring out how to structure it so that you think it works in your monthly budget. It might, but that car is going to cost you way more than it needs to. You mentioned 'lease' at the end. Did you mean 'loan'?
All you need to know is that if you can't afford the payments on a 36 month loan, you can't afford the vehicle.
As for what you don't think is fair - all it takes is simple math. The difference between $5k down and $1,800 down is $3,200. The difference in payment of $45 x 72 months is $3,240. A difference of only $40. So the interest on that extra $3,200 you are borrowing because you are putting less down is $40. That's unfair?