i have a loan question since i am new to these and have no idea exactly how they work other than making monthly payments. i plan on getting my Z shortly after i get my tax return in 2006 which i think comes in april. anyway, im planning to put 6k down on my loan but since i have to sell my car in order to get the majority of that 6k, i am curious about something. say i were to find a Z that i wanted before i was actually able to sell my car and i was only able to put 2k-2.5k down on the loan, would i be able to put the money that i ended up making from selling my car onto the loan to lower the monthly payments? the reason i ask is that my current car is my only mode of transportation and my current apartment complex only allows one car per resident so if need be, i could leave me current car at my parents house on the other coast. i hope this question makes some sense. thanks for any help.

 

If you want to put additional money on the loan after you got it, the money would go to principal. It would not lower your payments but would shorten the length of your payments. The only way to lower your payments would be to refinance the loam.

 

nvm.

 

ah ok. so say i had a 60 month loan to begin with but put the extra money down afterward, i could get it lowered to a 48 month loan. is that correct? just want to make sure that i understand. i may end up just refinancing. thanks for the quick response.

 

last question, it concerns depreciation. ive found a couple of 03 performance Z's in good shape around me going for 19k. would it be safe to say that the same model could be going for 18k by may?

 

Let’s get together in April of 2006 and talk this over.

 

Google 'Rule of 78'
Be cautious, no not cautious, scared as hell of a rule of 78 loan. Typically car dealer loans are rule of 78. This is a scam put together by the loan companies years ago and in a nutshell, your interest is calculated so even if you make a big payment to principal, you still end up paying the sum of monthly payment amount times number of payments. Deal with a bank or credit union and ensure you are getting a loan calculated with simple interest and ask to make sure there is no prepayment penalty.

 

99.9% of loans generated from a car dealership are simple interest. I have only seen a couple of banks in the last 6 years finance a sum of payments and that was a very very secondary lender. SO don't be scared as hell, just make sure its a simple interest loan, that is all.

BTW what is a tax return

 

will do. thanks for the help guys. i am more than anxious for the next few months to pass by.