I have putting down a lot of numbers into the payment calculators in websites such as edmunds.com and others, and they say, with about 14000 and if the car is 24000, I can be paying somewhere in the range of 230-270 a month for the Z for 5 years. And one of my friends was like, those website calculators are a joke, the real thing is much higher. Is this true? If so , how?
Come on, give me some good news

 

I don't see how your friend can say they're a joke when it's a pretty standard calculation. It all depends on your rate. If you're financing $10,000 then I'd estimate your payment (4.5% rate unless your credit is bad) will be about $183. If you're financing $14,000, your payment will be $261. It all depends on your rate, which depends on your credit.

 

Those calculators are somewhat usefull, but they are not actually as accurate as one might want them to be...What I mean is that they end up giving you an estimated amount, but it has been my experience that you usually end up paying more than what those calculators tell you. Just my .02. The best thing to do is go to talk to an actual finance officer because they can give you the best number.

Also (I keep rambling) never buy a car with the intention of negotiating the monthly payment. A dealer will (almost always) be able to finance a car around your desired monthly payment which doesn't necessarily work out to your benefit (ie longer finance terms with higher interest rates etc etc). Always negotiate on the out-the-door cost of the vehicle which includes tax title and license blah blah blah...

 

The calculators are accurate, but you have to keep in mind you must add the fees such as tax, title, etc. Thats really the only reason payments probably end up being higher than what people thought.

 

I 2nd that. The best calculator I've used for my previous purchase is from CARMAX research tools payment calc

and just below that, there's TTL estimater (which is 99% accurate) for whatever state that you're in.
So if you do your own math then you won't have to bust out a fin. calc.

 

A good rule of thumb is approximately $20 per $1,000 financed. That's at a rate of approx. 7.45% over 60 months. Current rates are much better than that for folks with decent credit. For example, at 4.5%, the rate per $1,000 is $18.64 for 60 months. So, figure somewhere b/w $18.50 and $20 if you think you will qualify for b/w 4.5% and 7.5% and you should be able to get in the strike zone of what your monthly payment will be based on an AMOUNT FINANCED. If YOU know what you can afford, keep that to yourself, but back into the amount financed by working the terms. Don't ever let them know what your payment budget is...as someone else said, they'll find a way to get you there and it is probably not with your best interests (e.g., stretch the term from 60 to 72, not put as much incentive or money in the deal, etc.).

So, with all that said, $280 is a very reasonable estimate for $14,000 financed and if you have good credit, should be on the high side for a 5 year loan. Push it shorter term, and of course it will rise. Change that term from 60 to 48 @ 4.5% interest and that $18.64 per $1,000 financed becomes $22.80.

Hope that helps...and in my experience, most of those calculators are pretty accurate. It's the taxes, tags, and other fees that people forget about...

 

Don't forget when they talk you into getting the extended warranty

But I did it b/c new model first year problems glitches bad design faulty tranny seat covers abnormal wear tire wear window streaks rear hatch not opening all the way throw out bearing noise etc you get the picture

But i have the warranty and it will be well worth when i get to 36K

 

the most accurate calculator to use is my HP12C, hehe

when i was negotiating with the salesman, he said with this X amount of money down, with this X% rate, your monthly payment will be $700.00. i pulled out my HP12c to do some calculations and i told him "BS!!" he got intimidated and had the sales manager sell me the car.. LOL. anywho, you cant go wrong carrying a HP12c when negotiating assuming you know how to use one.. they will respect you and not BS with you

BTW i got the payments down to $375 with the same amount of money down and interest rate the stupid salesman gave me

 

He's buying a used Z, so none of the dealer fees, taxes, etc. are in play. The only ones he'll have to watch out for living in VA are titling and taxes.

Dino, since you'll be putting together your own financing, the range you worked out is about right. The big fear factor for you is going to be insurance. At your age, you are considered a huge risk behind the wheel of a car such as the Z.

 

got that right! im payin $2,600 a yr to insure the Z

 

My insurance won't be that high because I plan to put the car under my dad's name and list myself as a driver. So it'll be his car, but I'll be paying for it. This should be about 140-190 depending on the insurance company.

 

I used the calculator online ..put in my down , set my % and it was dead on.
545.93 /month... I also put in the 650.00 each month that I actualy pay to calulate my pay off, it was totaly reasonable.

 

Fuchao, remember that just because they advertise 4.5% that doesn't mean thats what your going to get. You need to be at least at Tier 2 level of Credit, which is in the mid-to-high 600's. At your age, I highly doubt you'd get that unless you get a co-signer.

 

The first and foremost important rule of car buying: It's always the OUT THE DOOR PRICE. If you talk to the sales ppl in car dealers about monthly payments, they will RIP you off! Make a final OTD price and use that for ur calculations.

 

Yes. find out What are they going to sell you the car for , not how much payment can you afford.

carbuyingtips.com

 

Just out of curiosity...how much does the extended warranty run?

 

I think it was $1600.

$26.66 a month plus the interest, my credit wasn't that great at the time so I am paying 6.something %. I'm thinking about refinancing the remaining balance b/c most of my past credit problems seem to be fixed