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Help me pick a "new" car...


KillJoy

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It always shocks me that people would finance a car over more than 4 or 5 years.

 

I love looking at stuff like this.

 

For every 10k you finance assuming 6%. Of course different loan terms will mean different interest rates, but I'm just wanting to compare apples to apples.

 

1 year: $860/month. Total interest is $327. Total % Interest is 3.27%

2 year: $443/month. Total interest is $636. Total % Interest is 6.36%

3 year: $304/month. Total interest is $951. Total % Interest is 9.51%

4 year: $234/month. Total interest is $1272. Total % Interest is 12.72%

5 year: $193/month. Total interest is $1599. Total % Interest is 15.99%

6 year: $165/month. Total interest is $1932. Total % Interest is 19.32%

 

So another way to look it is that going from a 5 to 6 year loan you payment/month drops 18%, but the total interest paid increases 20%. In actuality the risk is more for a longer term loan so the interest rate goes up, negating some of those savings/month.

 

I'll never even do a 5 year loan again, probably 3 at most, if I ever even finance a car again. I won't finance another car if I can.

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I love looking at stuff like this.

 

For every 10k you finance assuming 6%. Of course different loan terms will mean different interest rates, but I'm just wanting to compare apples to apples.

 

1 year: $860/month. Total interest is $327. Total % Interest is 3.27%

2 year: $443/month. Total interest is $636. Total % Interest is 6.36%

3 year: $304/month. Total interest is $951. Total % Interest is 9.51%

4 year: $234/month. Total interest is $1272. Total % Interest is 12.72%

5 year: $193/month. Total interest is $1599. Total % Interest is 15.99%

6 year: $165/month. Total interest is $1932. Total % Interest is 19.32%

 

So another way to look it is that going from a 5 to 6 year loan you payment/month drops 18%, but the total interest paid increases 20%. In actuality the risk is more for a longer term loan so the interest rate goes up, negating some of those savings/month.

 

I'll never even do a 5 year loan again, probably 3 at most, if I ever even finance a car again. I won't finance another car if I can.

 

I agree, but at 0% it's free money... :bangbang:

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I agree, but at 0% it's free money... :bangbang:

 

The only companies offering 0% are cars you don't want to own and will essentially be worth nothing in a few years....so your 0% gets you exactly that, zero! Then again, a new car purchase is a nightmare for some... :(

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I'll never even do a 5 year loan again, probably 3 at most, if I ever even finance a car again. I won't finance another car if I can.

 

Yeah, I'll never do more than 2 or 3 years on an auto loan, although I plan on buying my next car cash for sure. It feels so much better driving a cheaper car and having the title in your hands than making payments every month on something more expensive.

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I agree, but at 0% it's free money... :bangbang:

 

Agreed

 

The only companies offering 0% are cars you don't want to own and will essentially be worth nothing in a few years....so your 0% gets you exactly that, zero! Then again, a new car purchase is a nightmare for some... :(

 

VW offers it regularly, Audi offers it regularly on CPO vehicles, Honda, Toyota, Chevy, Ford etc. They have all offered 0% for 60-72 months, and dozens more have offered it for 36 months.

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Agreed

 

VW offers it regularly, Audi offers it regularly on CPO vehicles, Honda, Toyota, Chevy, Ford etc. They have all offered 0% for 60-72 months, and dozens more have offered it for 36 months.

 

Not all models, it's typically only on certain models (usually ones that aren't moving)....even then it's usually the previous year run now that the new models have arrived...

 

Honda, Audi, BMW, etc. have offered 0.9% for 12-36 months but only a few are doing 60-months (again on cars I wouldn't recommend)....

 

Some sweet deals on Hummer, Saturn, Pontiac, etc... something you don't want to own...

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Not all models, it's typically only on certain models (usually ones that aren't moving)....even then it's usually the previous year run now that the new models have arrived...

 

Honda, Audi, BMW, etc. have offered 0.9% for 12-36 months but only a few are doing 60-months (again on cars I wouldn't recommend)....

 

Some sweet deals on Hummer, Saturn, Pontiac, etc... something you don't want to own...

My wife's Audi, 2006 that she bought in 08, factory + CPO warranty and 24k miles, 60 months, 0 down, 0.9% through Audi. Jones got the same deal on his S-line as well...and that's for a USED car.

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My wife's Audi, 2006 that she bought in 08, factory + CPO warranty and 24k miles, 60 months, 0 down, 0.9% through Audi. Jones got the same deal on his S-line as well...and that's for a USED car.

 

To bad they aren't still offering those deals, credit for some is very short right now....

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