Need some financial advice please?

jaedub · 09-22-2010, 04:53 PM

10k down should be enough. I put 8k down with payment of 500 every month. My credit was avg.

dad · 09-22-2010, 05:03 PM

Don't finance beyond 60 months, the money sent on the interest isn't worth spending.

daleks · 09-22-2010, 05:09 PM

You have to meet minimum loan-to-value (LTV) amounts to qualify for certain loans. Generally if you have a 20% LTV (20% of principle paid up front) you should quality for the best rate. Beyond that it's a function of what you want to pay now and what you want to pay later. I think the main point is that if you don't put money down towards the car, be sure to do something useful with it. Otherwise it would've been better spent on paying down the car. Small variations in interest rates amount a couple grand over the life of the loan, which may or may not be much depending on your situation.

wilsonp · 09-22-2010, 05:54 PM

Quote:

Originally Posted by daleks

Otherwise it would've been better spent on paying down the car. Small variations in interest rates amount a couple grand over the life of the loan, which may or may not be much depending on your situation.

I agree - given current savings rates, I realized I was better off paying cash then getting a loan. Saved much more money not paying interest than earning slowly.

Also, I like to buy used these days - forced into it by my desire for an NSX, but find it has advantages in addition to letting someone else eat the depreciation. I'm not afraid of buying new, though, since I tend to keep a car 10 years.

09-22-2010, 05:03 PM	#2 (permalink)
dad Grand Prix of Endurance Join Date: Nov 2008 Location: Tennessee Posts: 3,476 Drives: Mulsanne Straight Rep Power: 27	Don't finance beyond 60 months, the money sent on the interest isn't worth spending. __________________ We can do without any article of luxury we have never had; but once obtained, it is not in human nature to surrender it voluntary.

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09-22-2010, 04:53 PM	#1 (permalink)
jaedub Track Member Join Date: Aug 2010 Location: Los Angeles Posts: 906 Drives: 2010 Black 370Z MT Rep Power: 306	10k down should be enough. I put 8k down with payment of 500 every month. My credit was avg.

09-22-2010, 05:09 PM	#3 (permalink)
daleks Enthusiast Member Join Date: Apr 2010 Location: St. Louis Posts: 424 Drives: 2011 Evo X MR Rep Power: 17	You have to meet minimum loan-to-value (LTV) amounts to qualify for certain loans. Generally if you have a 20% LTV (20% of principle paid up front) you should quality for the best rate. Beyond that it's a function of what you want to pay now and what you want to pay later. I think the main point is that if you don't put money down towards the car, be sure to do something useful with it. Otherwise it would've been better spent on paying down the car. Small variations in interest rates amount a couple grand over the life of the loan, which may or may not be much depending on your situation.