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Old 10-16-2013, 05:30 PM   #113
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Quote:
Originally Posted by Carsten View Post
Apr: 13.99
Down payment: $3500
Monthly:$604
Term:72 months
Total cost: $46,988
Quote:
Originally Posted by forzajuve View Post
The fact that your total cost = $46,988 is completely absurd!!

With that total you could buy a bmw, sti, evo, OR call me crazy, 1 new frs and 1 used frs. 10-series if over rated.

Perhaps this will add some clarity for the benefit of all:

Given his figures above, the loan value = $29,319.84

$29,319.84 for 72 months @ 13.99% = $604/month x 72 = $43,488 (plus $3500 down = $46,988 TOTAL COST)

The cost of "buying" the money = $14,168.16

Yikes!

The high interest rate and the long loan term of 72 months created this problem.

The buyer in this deal will probably be "upside down" throughout the ownership of this car. Upside down means that at a given time, he owes more on the loan than the car is worth. He has "negative equity" in the car.

It is best to avoid upside down scenarios.

This is a poor financial strategy.

Deals like this can be the first step along the road to bankruptcy.

I hope this has been helpful.

Last edited by Porsche; 10-16-2013 at 05:41 PM.
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Old 10-16-2013, 05:35 PM   #114
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Great points. I was being a little sarcastic/fun with my comment but I totally agree with you.
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Old 10-16-2013, 05:43 PM   #115
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Here's what Scion offered me when I got my car, and I'm in Canada, so our cars our actually a little more expensive.

Age: 19
Apr: 3.99
Monthly payments: $403
Term: 60 months
Total price of car at the end of it all: $35,500

This included Trd exhaust, Trd intake, upgraded audio, tint, spoiler
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Old 10-16-2013, 05:55 PM   #116
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I'm 19, turning 20. I started out getting a credit card, then i bought a Used 07' Impreza last January. (4 year loan, 4000 down payment, 10.99%apr. $290 a month) Credit is now above a 720. Got a loan offer from my credit union. 4 year loan, 2.94% with 10,000 down (trade in was included) total amount for car after four years? $19,920! Not to shabby for almost 30k on the BRZ limited.
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Old 10-16-2013, 06:24 PM   #117
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Reading this thread makes me really happy I went with Toyota/Scion Carlsbad...

I'm 19 as well, one year of credit history, no cosigner, did it all by myself.

500 down, 72 month term, 3.99% APR, $435 monthly payment.

Total cost $31,320.

Again, I'm also 19, with only one year of credit history, and no cosigner whatsoever. My income was also barely at the $2,000 a month minimum at the time.

In the end, choosing who you do business with is everything.
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Old 10-16-2013, 06:29 PM   #118
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Its not the dealer that sets the apr though, thats all handled by the financial institution that offers the loan. Its all about what the credit report, income and risk factor that determine your apr.

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Old 10-16-2013, 06:45 PM   #119
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Originally Posted by Hanni_0176 View Post
…although I've been told that paying it completely off every month raises my credit the same as carrying interest does, but whatever.
That is my understanding, yes. It is NOT necessary to carry over a balance and pay interest on your credit cards in order to build a credit history.


We charge virtually every single thing we purchase, groceries to gas, and we pay off the balance every month. We have not paid any interest on credit card balances in decades. Our FICO score, the gold standard of credit scores, is 850. Yes, you read that correctly.


It IS possible! Have I mentioned that we're old?


I recommend that everyone stop paying interest on credit cards unless you're unable to pay off the balance by the due date, in which case pay as much as you can … and try not to buy what you cannot pay for by month's end.


I know that these days things are tough and that's not always possible, especially when confronted with unexpected expenses.

Quote:
… and somehow got suckered into purchasing an extended warranty for $1,500 extra (stupid, I know)...
Young people regularly get "pressured" into that. It may be possible to cancel that extended warranty, if you wish, and get a refund. After all, you have not used it yet.

There are a number of threads on these forums addressing this issue.
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Old 10-16-2013, 07:48 PM   #120
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Originally Posted by Porsche View Post
That is my understanding, yes. It is NOT necessary to carry over a balance and pay interest on your credit cards in order to build a credit history.


We charge virtually every single thing we purchase, groceries to gas, and we pay off the balance every month. We have not paid any interest on credit card balances in decades. Our FICO score, the gold standard of credit scores, is 850. Yes, you read that correctly.


It IS possible! Have I mentioned that we're old?


I recommend that everyone stop paying interest on credit cards unless you're unable to pay off the balance by the due date, in which case pay as much as you can … and try not to buy what you cannot pay for by month's end.


I know that these days things are tough and that's not always possible, especially when confronted with unexpected expenses.


Young people regularly get "pressured" into that. It may be possible to cancel that extended warranty, if you wish, and get a refund. After all, you have not used it yet.

There are a number of threads on these forums addressing this issue.
True, but $5 a month to me is extremely negligible. I'm not hurting for cash right now. I keep most of my bills low, I don't pay much in rent, I'm single with no kids, etc. For some people, every penny counts, but for me... meh, I'm just not worried about it. And some months, it's only like $2 in interest.

How would I go about canceling that extended warranty? Should I speak to the dealership, or contact TFS?
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Old 10-16-2013, 07:55 PM   #121
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Some of the post on this thread I call BS on thus the beauty of a keyboard. The main thing that worries me about the thread starter is not qualifying for CC. I started building credit at a young age and carry a zero balance on a CC with a 10k limit. I only charge on road trips then pay it off when I get home. Again each their own I just take offense to him calling someone out when in reality they were working with him and doing their best to let him get what he wants.
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Old 10-16-2013, 08:01 PM   #122
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mine is very similar to this, I'm also 19, and got approved at two dealerships.. (was impatient) lol

oh and if you have really bad credit for a CC, the last thing you should be buying is a brand new car..
Quote:
Originally Posted by Zach3794 View Post
Reading this thread makes me really happy I went with Toyota/Scion Carlsbad...

I'm 19 as well, one year of credit history, no cosigner, did it all by myself.

500 down, 72 month term, 3.99% APR, $435 monthly payment.

Total cost $31,320.

Again, I'm also 19, with only one year of credit history, and no cosigner whatsoever. My income was also barely at the $2,000 a month minimum at the time.

In the end, choosing who you do business with is everything.
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Old 10-16-2013, 08:01 PM   #123
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Get up and walk the fuck away. Get a dept store credit card, gas card or a Visa/MC card with $500 and start building your credit. It's better to wait than to get stuck with a 60 or 72 month loan.

Those numbers are insane! He's screwing you and your co-signer w/out any KY and with coarse sand.
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Old 10-16-2013, 08:01 PM   #124
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Here is another scenario you folks might wish to consider:

What if we do not wish to commit to the higher payments of a 3-year, 36 month loan, and take a 5-year, 60 month loan. We're concerned about the much higher payment being a problem should we encounter any unpleasant financial surprises in the next few years. After all, <bleep> happens, right?

But, assuming all goes well, and we make larger payments, the same payments as we would have been required to make had we signed a 36 month loan contract, what will happen?

Then your loan will be paid off in exactly 36 months.

You might lose a little by doing it this way because they might have offered a lower interest rate originally had you signed up for the 36-month loan. If not, then the cost will be the same.

Let's look at how much we will save using one of the previous scenarios:

Let us say that you borrow $20,000. Now study the figures below:

$20,000 for 60 months @ 14.99% = $475.69/mo. x 60 mo. = $28,541.40

So, the cost to borrow this money on these terms = $8541.40

They gave you $20,000. You gave them back their $20k plus $8541.40. Clear?

Instead, pay $693.21/month, and the loan will be paid off in 36 payments.

$693.21 x 36 = $24,955.56

So, the cost to borrow this money on these terms = $4,955.56.

By paying an extra $217.52/month, you will save $3585.84, and you will own your car, free and clear, in only three years.

This plan will require additional discipline. But, in a financial pinch, should something unfortunate happen, you can revert to paying the regular monthly payment of $475.69 and keep your payment record perfect. That would extend the total number of payments, but you'll be safe and your payment history will be unblemished.

Oh yes, be certain to instruct the bank to apply your excess payment to the principal. Otherwise, they may call it an "early payment" for next month's bill. (They really are swine.) Make sure they apply it to paying down the principal and reducing the loan balance.

Last edited by Porsche; 10-16-2013 at 08:30 PM.
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Old 10-16-2013, 08:04 PM   #125
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Originally Posted by Derrick View Post
mine is very similar to this, I'm also 19, and got approved at two dealerships.. (was impatient) lol

oh and if you have really bad credit for a CC, the last thing you should be buying is a brand new car..
Not sure if you were referring to me as having the bad credit, but when I bought the car, with one year of credit history, my score was a 748...pretty sure that's Tier 1
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Old 10-16-2013, 08:06 PM   #126
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I have not said this, but I'll say it now. While I cannot know for certain what the dealership was charging for the car in those original scenarios the OP showed, because he failed to show exactly what extras were purchased ... it looks to me as though they were charging the OP more than MSRP for the car. For a 2013, now last year's car, that's not a good deal.

Another clue: They "pretended" they didn't know how much the car cost when the OP asked. Yeah? So, how did they compute the tax? On a mystery number?

Oh, please.
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