Hey guys and girls I'm new to this site, I plan on buying my first ever 350Z which will be the new 2007 Touring (AT) model. I have been saving my money for awhile (I'm 23 years old) and I plan to put down 20 thousand in cash for my 07' Z but all my friends are telling me it's a bad ideas! They kept telling me it's better to put down as little as possible but I want to pay this car off as soon as I can because I plan to get a house in a few years (about 4)! What do you guys think? I don't want high monthly payments but I don't want to feel like an idiot if I put down 20K on a new car??? Thank you for the help everyone!

P.S. - I will try to work a deal to pay less than 37,000 after tax and title out the door. I will be trading in my 2003 Ford Mustang V6 but I will be upside down about 1,000 in January.

 

theres never too much to put down if you have the $$

 

The question is, seeing that you want a new house in the future, could you possibly buy an older model and save some money? I'm not greatly familar with all the models, but the 07 should'nt be much different than this year model.

 

If you have $20,000 for a 350Z, why is there a lien on the Mustang?

 

buy an 05 because there jsut as good as the 06's and you will get one for about 26k

 

Thats a good point, if you want to buy a house pay off your car and save more money.

 

 

I had 14k saved but only put 7k down. The reason being the payments were not much more, I planned on paying double payments (so not worried about paying more in interest), and would rather have the money in the bank getting 5.5 % interest in a CD so if anything came up I could have access to the money (early withdraw was only like $30).

 

The reason why I still owe on my Mustang is because I don't want to pay it off it they are going to take it as a trade in for almost what I owe on it. I will get about 6 for it in January and I only owe 7 on it so I will let them pay if off for me! I think that's a good idea?

 

Not me.

Pay-off the Mustang, It will be yours free-and-clear. Equity in the car will be yours.

 

Never pay a down payment that will be more than what you think the car will be worth when you sell it. This is the best way to buy a car. IF you put 20k down, trade the car when you can get 20k for it (3 years or so). This will allow you to always have a 20k down payment and low monthly payments (doing this is better than leasing IMHO). Just plan on getting a new (or used) car every 3 years or so...

In your case, I'd put 16k down on the car and keep making payments - it will help your credit and give you 16k if you ever need to get rid of the car within the next 4 years... Besides, if a car costs 30k new, you will only be financing 14k, or about 250 per month....

 

The amount to put down depends on the interest on the loan. I would NEVER put anything down on a 0% loan because I could put that money somewhere else and make money on it. If you can make more money than you're paying in interest, it makes sense to put that cash somewhere other than a downpayment.

 

Wow...
There is no such thing as too much down. The more you put down, the less you will have financed. That means you'll be putting less $$$ to interest. That means you'll be 'throwing away' less money. If I were you, I would put everything down that you could, and finance the rest with as short a term as you could get/afford. As for the Mustang, if you are thinking about it this far ahead, you have time to sell it. DON'T TRADE IT IN. Dealers never even want to give you the actual trade value of the car so they can make as much profit as possible. IMO you should sell it right before you buy the Z. If you have to you can go get a $10-a-day rental to cover the gap between selling the Mustang and buying the Z (assuming there is a gap...). GL

 

put 5 grand down on the car, invest 15grand for 3 years and you will make more on interest of 15 grand...then the interest on making payments on a Z for a few years....putting down a ton of money on a car is not a smart move unless you are buying a 50,000 car......

 

Interest rate for a 350z > Interest rate for a house.

If you're spending the money either way, would you rather be paying 6% or +8% on a car loan?

If you must have the car, buy the car first cause the interest rate will be higher. The ONLY reason you would consider borrowing money instead of paying cash would be if you had some sort of sure fire investment that could pay you +6% return. Always move your money towards the higher rate - basic rule of thumb.

 

The fact that you have still owe $7k on the Mustang and wanting a Z in the near future is poor timing.

First, the Mustang doesn't hold its value well. The depreciation is so crappy that it will be eating into the residual value of the car after it's paid off. In which case I suggest you either drive the living **** out of it and skip the Z or get rid of it quickly to minimize chances of negative equity on it. So it looks as though you won't be getting anything for ur Stang.

Now, you have $20k for the Z. It seems as though it's about 50% value of the vehicle, which I think is on the high end. It's not exceptionally high, but near the threshold. I say this because it also depends on the APR they give you.

If the APR is bearable at 6% or less, making 48 to 60 month payments w/ the 20k down will obviously lower your monthly payments which in return give you the opportunity to save a bit each month for your future home. It'll give you more financial flexibility in case of rainy days occur.

From what I know, the larger the down, the lower the APR goes.

Anyways, I wouldn't put too much down on something that depreciates compared to a home that appreciates over time. That should be obvious. You have to plan out how much of your total paycheck you want to spend on the car, mine is around 25% assuming I make 2k a month.

So given that, also keep in mind how big your paycheck is. The deeper your pockets are, the larger the 25% for the car becomes thus enabling you to purchase a better car.

The statement w/ no putting more than what your car is worth in the end is very good advice. In Aug '01, I put down 10k on a 23k RSX and just finished the 5 yr payments this past Aug and the car is worth $13.5k. But it's also due to the fact that it holds its value well.

Monthly payments in the <450 range is typically sustainable and most ppl fall in that range. Cars depreciate the most during the first two years, keep that in mind as well.

 

Doesn't seem obvious to me.

The car will depreciate by the same amount, whether you put down zero, 20%, 50%, or pay 100% cash.

And the home will appreciate by the same amount, whether you put down zero, 20%, 50%, or pay cash.

BTW, I started buying homes for investment about 15 years ago, and bought most of them for zero down. So I have earned 50-75% appreciation, without investing any of my money.

bill

 

Get a old Porsche 911 turbo...

 

definitely dont buy it new..just got a great deal on an 06 Z for $22,000 with only 17,000 miles on it and its in mint/new condition.. keep searching till u/find one with very low mileage, there are plenty out there, especially now with coming winter months sales are slow on this car.
i would put very little cash down, and save the rest for real estate, which as stated will APPRECIATE, your car will DEPRECIATE, good buys out there now, its a buyers mkt.

 

You mean 2005, right?