How much did you finance your FR-S for?

[moniz]

Originally Posted by dori.

I have a question about this. Will paying the loan off early lower your payments going forward, or is it just to accrue less interest over the life of the loan?

Originally Posted by DeeezNuuuts83

Not exactly, it would be less expensive to just get a 48-month loan and pay it off in 48 months than it would be to get a 60-month loan and pay it off in 48 months. If you look at the amortization tables for both options (which you can look at on some iPhone apps) as far as how much interest is charged each month, you'll still get charged more in interest overall, even if paid off early at 48 months.

But admittedly, at 1.9% for a ~$30,000 car (assuming you put $0 down) doesn't amount to a big difference in the scenario we've been discussing (48-months vs. 60-months paid off in 48 months). I think it ended up being a ~$230 difference in the end, if my calculations are correct.

Uh, my answer IS EXACTLY correct based on what the OP asked. Now if he/she had asked which term would be better to pay less interest, then I too would have given your answer.

[thill]

Originally Posted by smallfun

Just curious, but has anyone considered borrowing from their 401k to finance? I worked out the numbers and total fees to set up and maintain the loan account amount to just under $90 for a 36 month loan of $11k. The interest rate of 4.25% (4.69% apr) works out to be around $750 over the course of the loan, but gets deposited back into the 401k account. In other words, it's like you're paying yourself interest. Aside from reduced earning potential, and assuming you're going to still be working with the same company during the term of the loan, are there any downsides to this?

I would never borrow against a 401K to buy a car. The only time I would touch my 401k is if it was an extreme emergency.

[Zgrinch]

Originally Posted by benjoke

Got approved also thru Penfed @ 1.99% for 60 months. Thanks to Zgrinch for the advice!

Try to shop around thru local banks and credit union rates before going to the dealer and hope that they may be able to beat the rates you inquired for.

Goodluck!

You are welcome. Glad to hear it worked out.

[DeeezNuuuts83]

Originally Posted by moniz

Uh, my answer IS EXACTLY correct based on what the OP asked. Now if he/she had asked which term would be better to pay less interest, then I too would have given your answer.

You know what, you're right. I mis-read it, my bad. But at least we're on the same page.

[feedbag]

Originally Posted by whiteout fr-s

My interest is unbelievable, payments are close to $700. But that's what you get when you've got school loans but own your own business, no financial backing. Oh well, 6 months to a year and I'll refinance.

Originally Posted by whiteout fr-s

^72 months, was going to put $5000 down but they gave me the car with 138 miles on it even though I put a deposit on it in February. I knew I was going to have insane interest because I am a business owner, young and have less than favorable credit.

Originally Posted by whiteout fr-s

I was driving a cheap car, have to start somewhere and yes your right 47000 is what it is financed at right now but with steady payments it takes less than a year to finance at a normal rate so I will never pay that much for the car. A car is the easiest way to rebuild credit fast and the fr-s is what I wanted, no sense in wasting money driving some beater when I can kill two birds with one stone.

[neutral]

Put 5500 down, 21k at 2.65% for 60 months

[wallace03]

can someone help me understand financing a little more. if i decide to deposit money on a brz and dont like what they offer me through their bank for financing when the car comes in, i can go to my own bank and get it done there correct? and how much would 1.9% monthly payment be on a 29k car?

[Sigh-on-Rice]

3.25@60mo

[DeeezNuuuts83]

Originally Posted by wallace03

can someone help me understand financing a little more. if i decide to deposit money on a brz and dont like what they offer me through their bank for financing when the car comes in, i can go to my own bank and get it done there correct? and how much would 1.9% monthly payment be on a 29k car?

Yes, you can get a car financed through a different financial institution of your choosing, but that has to be done before you can complete the sale of your car. It's best to have these things done before you go into the dealership.

Assuming that $29k is the out-the-door price, at 1.9% over 60 months with $0 down, your monthly would be $507.04, and at 48 months, it would be $627.89.

[kevinnivek8877]

2.9%/63m with 10k down. my monthly payments are around 400/m.