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I once sold cars..just playing along here:
Purchase Price: $30000 <----did you pay more than this? if so too much
Down Payment: $3000 (assumption)
Value of Trade/Sell: $0
amt borrowed = $27,000
Interest Rate for Loan: 7%(assuming you in tier three or four to get less than ideal rate)
Number of Months for Loan: 72
Here's the payment information:
Monthly Payment: $460.32*
Total Interest Paid: $6143.27*
so if your paying $535 x 72 youre paying back $38,500
theres two grand you paid too much on either car, or rate
I have advised folks above 5% it starts to make less sense, at 7% you really better be aware of the value and want the car that bad.
Its true not everyone will qualify for .9% or 2.9%
no biggie, try and put more down to borrow less if your scores are lower than you like
either way not the end of the world, lots of folks with less than stellar credit need a loan that they fullfill to improve their scores, so this may be a stepping stone if you play your cards right
do not take 6 years to pay this back whatever you do, as far as fiscal advice
that said lots of folks do what they gotta to enjoy a car and life
thats alot for a 86 unless you plan to pay back your loan early, in the next 30 months may make sense to keep it, and may improve your scores in a short while, then its worth it
short of that sell before you get too much negative equity or you will never get out and have to drive it to the ground for 6 more years
..or keep it drive it and smile, tho this is bad fiscal practice unless your cash flow can sustain it I wouldnt advise it.
can you sell another asset and pay loan off early? thats the most sensible thing to do if you want to avoid the interest and keep the car, atleast all you loose is some money and not the car
loosing the car will cost you the car, but may be the wisest to unload yourslef of a debt like that if you will need full term to payback. improve your score and get into something maybe a better deal would be
60 months not 72, 4.9% or better, and put more down to borrow less=less impulsive
now go out for a drive and dont be down on yourself, we all make mistakes
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