My Calculations

Selling price: 25,900
Tax: 6.5% = 1,684
Other Cost: 389
---------------------------
Total 27,973
Financing: 1,339
(4.79%@72m)
---------------------------
Total 29,312/72m
$407/1m

Edmunds Calculation

Selling price: 25,900
Tax: 6.5% = 1,684
Other Cost: 389
---------------------------
Total 27,973
Financing: x,xxx
(4.79%@72m)
---------------------------
Total xx,xxx/72m
$448/1m

Am I doing somthing wrong or is it edmunds?

 

6 years? ouch.

 

Your numbers are incorrect. The interest rate is the percentage applied per year and not simply against the entire loan amount.

 

how much downpayment? but seriously man.. 72 months?! that's wow... the last 2 years all you're going to be doing is paying interest to the bank. serious you should consider 4 or 5 and put a bigger downpay if you can. just some advice. good luck

 

I calculated your numbers on Excel.

At 72 months, your monthly payments will be

$447.78

Hope this helps,

J

 

Gee, I feel like a moron.

superstuddc, its just one more year anyway and i only have a 1,000 to put down (the 447 is 0 down). you all really think 72 months is that bad? im thinking about just selling the car after 3 years.

what do you mean?

 

I think, what he means is that the first two years you will be paying a huge amount of interest and little principle. Also, people who have long terms of payment run the risk of getting "upside down" on their loan. In other words, at some point they could owe more on their car than it's worth. You could total the car, collect the insurance money and still owe the bank thousands.

WayneTN

 

Why don't you consider leasing the car. I'm leasing with 2700 down monthly payments are 449. per month for 3 years. I think everyone is right 7 years is just to long to be paying a car note. Just lease it if after three years you go over your mileage then you can either eat the cost or buy it then sell it. They will sell the car cheaper to you as they really don't want your car! Just something to think about.

Best of luck in what ever you do..

 

I thought 72mo was 6 years? The car not gonna take a nose dive in value I would not think. Unless you abuse the car you could probably sell in three years and not be a negative or not by much.

 

cars are not investments, it's a monthly service you pay for. It's money you are throwing away and never getting back. Remember that. A good rule of thumb is to not let your monthly payment be more than 20% of your TAKE HOME pay. Another rule of thumb is that you never let the worth of your car be less than what you owe the bank (as aforementioned). So, why would you ever want to pay for something for 6 years before you could call it yours?

Now, there's always exceptions, and everyone's situation is different, but i would suggest you be patient get a larger downpayment so that your 4 or 5 year loan would have a payment of around $450. Me personally, I'm waiting till i can pay for at least a 1/3rd of the car at signing because I don't come from a background anywhere near as affluent as some of the backgrounds that are around here.

 

True...but. Some cars will have a higher residual value than others. In fact, in a thread on this site it was pointed out that the Z will retain more of its original cost than any other car in its class. So, in that respect, picking a Z is an "investment" that minimizes your losses.

fwiw,
WayneTN