Down Payment?

[Jeong]

im 18, im in the marines. i dont have a credit score but military union banks finance vehicles for a really low apr. problem is i only have a grand on me. so i was thinking of waiting till the end of the year. but either way ill be financing my vehicle through USAA. just wondering if putting down maybe 2-2.5k now or waiting for like 6-7k end of the year will make a big difference.

[Hawaiian]

Originally Posted by Jeong

im 18, im in the marines. i dont have a credit score but military union banks finance vehicles for a really low apr. problem is i only have a grand on me. so i was thinking of waiting till the end of the year. but either way ill be financing my vehicle through USAA. just wondering if putting down maybe 2-2.5k now or waiting for like 6-7k end of the year will make a big difference.

I got mine with only 500 down and a $400 tradein (don't ask. I got the better end of the deal).

[Chewie4299]

12.5 for my trade + 1500 cash - 1500 owed on trade

Financed roughly 14k @ 2.74% for 48 mo

Sent from my Galaxy Nexus using Tapatalk 2

[fistpoint]

Originally Posted by Thunderchicken

Just a quick ref. for every $1000 you put down you only decrease your financed payment by $10.

Incorrect.

It depends entirely on what your APR is first, and even then you're still way off.

http://www.bankrate.com/calculators/...alculator.aspx

Play around with that for a while...for example: borrowing $20k at 2.9% versus $19k at the same 2.9% makes nearly double the difference you claim, almost $18. At 4.9% it's almost $19. At 8.9% it's almost $20. Even at .01%(yes, .01%), it's still over $16 difference.

I don't know where you got that $10 idea. Whomever has been giving you numbers(the dealership I presume?) is blowing smoke up your ass.

The actual number is $16.66 for every $1000 down at 0% APR. As the APR increases, so does that number.

[RRnold]

Originally Posted by Jeong

im 18, im in the marines. i dont have a credit score but military union banks finance vehicles for a really low apr. problem is i only have a grand on me. so i was thinking of waiting till the end of the year. but either way ill be financing my vehicle through USAA. just wondering if putting down maybe 2-2.5k now or waiting for like 6-7k end of the year will make a big difference.

You're definitely in good hands with USAA and would even suggest Navy Fed if you have a branch near you. If I was in your shoes, I would wait. Save up at least 6K to apply as a down and then some for your savings b/c being 18, insurance would probably kick your ass with the premium.

[Thunderchicken]

Originally Posted by fistpoint

Incorrect.

It depends entirely on what your APR is first, and even then you're still way off.

http://www.bankrate.com/calculators/...alculator.aspx

Play around with that for a while...for example: borrowing $20k at 2.9% versus $19k at the same 2.9% makes nearly double the difference you claim, almost $18. At 4.9% it's almost $19. At 8.9% it's almost $20. Even at .01%(yes, .01%), it's still over $16 difference.

I don't know where you got that $10 idea. Whomever has been giving you numbers(the dealership I presume?) is blowing smoke up your ass.

The actual number is $16.66 for every $1000 down at 0% APR. As the APR increases, so does that number.

That's not my point. If it's $10 or $16 off of your monthly payment you'd be better off just paying that amount extra on your monthly payment, just do the math.

I personally would rather pay-less in interest, and pay off quicker then have a marginally lower payment. Because every dollar you pay over on your monthly payment is applied straight to principal.

[Enilder]

Originally Posted by Thunderchicken

That's not my point. If it's $10 or $16 off of your monthly payment you'd be better off just paying that amount extra on your monthly payment, just do the math.

I personally would rather pay-less in interest, and pay off quicker then have a marginally lower payment. Because every dollar you pay over on your monthly payment is applied straight to principal.

I completely agree if you aren't investing.

To the OP, I know everyone says that a life is too short but I wouldn't count every penny to buy this vehicle. Not because I want to pretend like I am your dad (I am no where near that age) but considering the fact that you are saving ~$1000 per month (although I am pretty sure you underestimated this to post it on a web), I wouldn't do it (I know that a finance rate is next to nothing and very tempting). Of course, the choice is yours but I am throwing my 2 cents. GL with whatever choice your make.

[fistpoint]

Originally Posted by Thunderchicken

That's not my point. If it's $10 or $16 off of your monthly payment you'd be better off just paying that amount extra on your monthly payment, just do the math.

I personally would rather pay-less in interest, and pay off quicker then have a marginally lower payment.

I have done the math, that's why I detailed how and why you were incorrect. You didn't have a point, you made a statement that every $1k results in $10 difference worth of payment. That is, was, and always will be incorrect by a minimum of 67% even with no APR at all. That's a huge discrepancy.

A few k extra down means half or more of a monthly insurance payment. That's reason enough IMO. Using your logic you might as well put zero down, or to be fair, just enough to avoid needed GAP insurance.

[jflogerzi]

For most people about every 1000$ will lower your payment 10-15$ a month. I put 4K + my trade in which I came out on the + side after they paid it off. But do not over extend yourself just to get into this car. If you to wait 6 months to save up for more of a down payment, then do it.

[Thunderchicken]

Originally Posted by fistpoint

I have done the math, that's why I detailed how and why you were incorrect. You didn't have a point, you made a statement that every $1k results in $10 difference worth of payment. That is, was, and always will be incorrect by a minimum of 67% even with no APR at all. That's a huge discrepancy.

A few k extra down means half or more of a monthly insurance payment. That's reason enough IMO. Using your logic you might as well put zero down, or to be fair, just enough to avoid needed GAP insurance.

Lets do the math with a car price of $25,925 + $2,138 taxes @ 8.25% + $200 for dealer fees. For a grand total of $28,263.81 of financed money.

Lets say you have great credit and get 2.9% for 60 months

$28,263.81 with no down payment = $506.61 paid off in July 2017
$28,263.81 with $3000 down payment = $452.84 paid of in July 2017
$28,263.81 with $4000 down payment = $434.91 paid off in July 2017
$28,263.81 with $3000 down payment + $18.00 a month (the difference between putting $4000 & $3000) = $470.84 paid off in May 2017 and May being $253.97
$28.263.81 with $3000 down payment & $1000 1 time payment with 1st payment = $452.84 paid off in May 2017 and May being $207.24

$28,263.81 with $4000 down total interest paid $1,830.88
$28,263.81 with $3000 + $18 a month total interest paid $1827.80
$28.263.81 with $3000 + 1 time payment of $1000 total interest paid $1755.57

Personally I would put down $3000 and take that $1000 you would have used as a down payment and make a 1 time payment with my 1st payment because you make the $1000 work better.

[fistpoint]

Originally Posted by jflogerzi

For most people about every 1000$ will lower your payment 10-15$ a month. I put 4K + my trade in which I came out on the + side after they paid it off. But do not over extend yourself just to get into this car. If you to wait 6 months to save up for more of a down payment, then do it.

I just discovered how you guys are getting this lower number, and incidentally forgot to include one myself.

How many years are we talking about? I was doing the math using a standard 5 year loan. To get anywhere close to $10 a month difference the loan term needs to be 7 years long. Who the heck gets a 7 year loan on a vehicle? Most people don't even own their car that long. Evan at that timespan it's still $12 a month.

You guys stop making up random numbers and just use a calculator instead. Math is not negotiable.

[#87]

I had to put down $4,000 in order to get a loan because of limited credit history. I also have to pay my state sales tax which was an additional ~$2,400

[Thunderchicken]

Originally Posted by fistpoint

I just discovered how you guys are getting this lower number, and incidentally forgot to include one myself.

How many years are we talking about? I was doing the math using a standard 5 year loan. To get anywhere close to $10 a month difference the loan term needs to be 7 years long. Who the heck gets a 7 year loan on a vehicle? Most people don't even own their car that long. Evan at that timespan it's still $12 a month.

You guys stop making up random numbers and just use a calculator instead. Math is not negotiable.

The way we come up with the $10-$15 is you have to add in your Taxes and Dealer fees which is about $2300. I don't know of many dealerships that will pay your TT&L

I always calculate 60 months but the standard is 48 months. Most people choose to go to 60 because it lowers the monthly payment by approx. $100

[fistpoint]

Originally Posted by Thunderchicken

The way we come up with the $10-$15 is you have to add in your Taxes and Dealer fees which is about $2300. I don't know of many dealerships that will pay your TT&L

That doesn't change the way a calculator works. WTF are you talking about?

Look guys, I'm not trying to be an ass, but the OP asked a financial question and some of the responses have numbers that simply do not add up. If you can't get your numbers straight, how likely is anyone to believe the rest of what you say?

Here is an even cooler calculator that changes the amount on the fly. Pretty neat:
https://www.hyundaiusa.com/financial...alculator.aspx

Enter 0% for APR. Make up any amount you want for vehicle price even $99000 if you want, it won't make a difference, all we need to see is the down payment change.