Down Payment?

[Thunderchicken]

Originally Posted by fistpoint

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.

You have to add car price + TT&L + dealer fees which gives you total amount financed.

If your total financed is $28000 @ 1.79% no money down = $488
but if you decided to put $1000 down = $471 which is a difference of $17 so as you add $1000 you will on average lower your payment by $17. If it was financed @ 4.99% no money down = $521
with $1000 down = $502 which is a difference of $19 so for every $1000 it would lower it by $19

[fistpoint]

Originally Posted by Thunderchicken

You have to add car price + TT&L + dealer fees which gives you total amount financed.

If your total financed is $28000 @ 1.79% no money down = $488
but if you decided to put $1000 down = $471 which is a difference of $17 so as you add $1000 you will on average lower your payment by $17. If it was financed @ 4.99% no money down = $521
with $1000 down = $502 which is a difference of $19 so for every $1000 it would lower it by $19

Congratulations, you did it!

Now then, can you explain to me how $17 and $19 equals the $10 I pointed out as being incorrect that you originally said?
$10, became $17 and $19 correctly. It was never $10 and never will be(unless you goto an 8 year loan, which you can't).

[Thunderchicken]

The point off putting money down is to get the payment to a point where it is manageable with your own finances. Putting too much down hurts you because it only saves you on average $10-$20 for every thousand put as a down payment on your monthly payment. If you can afford $452.84 a month on $28,263.81 @ 2.9% with $3000 down take that $1000 that you would have used as a down payment and spend it else where because it will only lower your monthly payment by $18.

However if your monthly price point is $434.91 then by all means put down $4000

[Thunderchicken]

Originally Posted by fistpoint

Congratulations, you did it!

Now then, can you explain to me how $17 and $19 equals the $10 I pointed out as being incorrect that you originally said?
$10, became $17 and $19 correctly. It was never $10 and never will be(unless you goto an 8 year loan, which you can't).

If you are trying to make quick calculations $10 is the easiest and it's not like you are talking hundreds of dollars. So if you have calculated your monthly payment with no down and get $507 you can quickly say for every 1000 I put down I'm going to lower my payment by $10. So when you are looking at cars you can easily see if you can afford the car or not.

Plus I have no clue what interest rate you qualify, how much you own on your trade in if you are upside down on your trade in for those are things you have to account for.

[thill]

Wow.

My advice. Never get a car loan over 4-5 years. Technically I don't like making car payments on a car that is no longer covered under warranty, so ideally you would want to put down as much money as you need to have comfortable monthly car payments on a 36-48 month loan. 5 years max.

Most investing is like gambling. You may or may not come out ahead, and a car is a bad investment no matter how you look at it if you are making payments on it.

I also would not recommend a car payment, insurance, etc to exceed 8-10% of your take home pay. So if you took home $4K a month after taxes you would want to target a car payment+insurance in the $320-400 a month range or so on a 36-60 month loan. But this also depends on what other loans and debt you have. 10% may be way too much if you have excessive school debt, house payment, medical bills, etc.

[Jeong]

well i make about 1900 after taxes each month (paid bi-weekly). i dont have any bills to pay so i think that id be able to pay off the loan possibly under 2 years. problem is i dont know how these loans work too well. I'm not too sure how putting too much or too little down payment will affect my monthly payments. i never realized buying a car would be so complicated -.- i can wait a few months. I dont really know how much i should save but i was just thinking 5-6k as down. anyone willing to enlighten me about all this financial stuff?

[Enilder]

Originally Posted by Jeong

well i make about 1900 after taxes each month (paid bi-weekly). i dont have any bills to pay so i think that id be able to pay off the loan possibly under 2 years. problem is i dont know how these loans work too well. I'm not too sure how putting too much or too little down payment will affect my monthly payments. i never realized buying a car would be so complicated -.- i can wait a few months. I dont really know how much i should save but i was just thinking 5-6k as down. anyone willing to enlighten me about all this financial stuff?

I hope you are accounting for property tax and insurance at least (I am not too familiar with these rates in CA but for ex., CT, it costs an arm and a leg compared to other states). Based on what I've read for how much others are paying for insurance, that's an easy 600~1000+ per 6 months. These 2 things along will shave your 1900 monthly pay check and possibly, a next month pay check as well.

At least for myself, this will be a simple commuter car (I got a weekender), so I am most likely going to lease it. I just haven't figured out the insurance part.

If you plan to own the vehicle for, say, 5 years+, financing is definitely the way to go and you should put the most money upfront (again, granted that you are not into investing). As far as determining how things change based on your down payment, you should be able to get a rough estimate from scion website. What is your target payment anyways?

[kappaknight]

Originally Posted by Jeong

well i make about 1900 after taxes each month (paid bi-weekly). i dont have any bills to pay so i think that id be able to pay off the loan possibly under 2 years. problem is i dont know how these loans work too well. I'm not too sure how putting too much or too little down payment will affect my monthly payments. i never realized buying a car would be so complicated -.- i can wait a few months. I dont really know how much i should save but i was just thinking 5-6k as down. anyone willing to enlighten me about all this financial stuff?

If you truly want this car, what better excuse than to use it as motivation to learn everything you can about auto loans, basic finance, and other related things such as insurance, taxes, annual taxes, maintenance, etc.? Don't be lazy and ask here; dedicated as much time as you spend researching this car and actively pursue the answers to your finance questions anywhere you can find it - you'll be glad you did one day.

[Griffdawg]

Originally Posted by RRnold

Wow! Is 5K all that you were able to qualify for? Was your 505 based on late/missed payments or because you didn't have any established credit?

I had a repo from 2007 on a 2002 Mustang GT Convertible which killed my credit. Lost my job and it got repoed.

[kendalldwhite]

I put 18k down I saved up for a while

[crazyfrenchbiker]

I put $10,000 down, in addition to the $1000 college grad rebates. I am financing in 2 years and my payment is ~$700 a month including my tax/title.

[avp1]

If you worry about cash flow (monthly payments), sport car is not for you. When you talk about downpayment, you need to balance interest rate against possible return from low risk investment. At 3% interest, it is better to give as much down as you can, because it is hard to find any financial instrument that brings you more than 3% return after tax. But if interest is 2% or even less, you may be better investing because credit is so cheap.

[artizhay]

Originally Posted by kappaknight

If you truly want this car, what better excuse than to use it as motivation to learn everything you can about auto loans, basic finance, and other related things such as insurance, taxes, annual taxes, maintenance, etc.? Don't be lazy and ask here; dedicated as much time as you spend researching this car and actively pursue the answers to your finance questions anywhere you can find it - you'll be glad you did one day.

Definitely some of the best advice here. My only other car was purchased at age 15 so my parents handled all the financials and they just told me what to pay them. Now that I'll be doing this on my own - same as most people here I assume; no one's going to be there at the bank or dealership to hold your hand - I've been researching everything nightly. I actually like math, so I sort of veered off of auto loans and looked at home loans and other loans in general, so I learned about refinancing, equity, etc.

Anyway, some good things to look are:

• What your lender will require you to purchase on your auto insurance
• TT&L estimates
• If your lender covers TT&L, only the auto price, or a percentage of the auto or purchase price
• Specific down payments required by your lender

Anyone with questions should just take some time to learn from legitimate websites. The responses on here are already all sorts of skewed and incorrect, so this is obviously not the place for financial advice.

In a few nights you can learn all sorts of things like what kind of APR you not only can afford, but what you qualify for. Perfectly fine to negotiate APR or compare various lenders. You can learn what kind of insurance features are required by the lender, what kind of insurance features you would like to add, etc. Plus you can estimate TT&L, calculate down payment and precision trade-in value, and see if your loan covers the full purchase price, or only a percentage of the purchase price or a percentage of the auto (some lenders will only pay 80-100% of MSRP, not including TT&L, while others will cover 100% full purchase).

And best of all, you can learn to negotiate and what mistakes to avoid.

Estimate TT&L by state:
http://www.carmax.com/enus/tax-title...r/default.html

Geico provided the best auto quote based on my current policy from Progressive (parents' policy), despite an accident from November 2008 which has hugely impacted the quote from most other insurance providers, including Progressive, in case anyone cares.

[Zaggeron]

Originally Posted by RRnold

Since we don't know your financial situation, that's your call. However, putting too much down on a car that will depreciate might not be that good of an idea, esp with on how low the interest rates are going for new cars.

What does depreciation have to do with it. You pay for the entire price of the car one way or the other. If we were talking about a lease, that's different. But if you are buying the car you will always pay less the more money you put down. The only time you should consider putting down less than you can afford is if you can make a higher rate of return on your cash than the interest you are paying.