Celestial

Hey guys, I'm getting an 08 Z this summer. I was thinking about just covering taxes and not putting down any downpayment for it. Views and opinions?

Blck350z

iTrader: (10)

The more down payment you have... less the finance charge??? unless your going to pay it off a couple years early.... I just got an '08 in feb for a great deal like everyone is talking about and I put a large d/p on it and my payments are down below $350 on a 4 yr loan.... sooo I should have it payed off in a year or two.... I hate paying for money haha

Z1 Performance

iTrader: (564)

if the money factor is still advantageous and the leasing company lets you do it, and assuming you can swing the payments, putting only the tax down is the way to go on a lease

Celestial

Right but I'm not leasing it. Major reason I don't want to put down downpayment is because if I did I would want it to go towards the principal and not have the dealer put half of it towards interest and the other half in their pocket

Which is why I believe that if I just pay for the taxes they can't get nothing and then I can actually pay for the car itself instead of just interest.

danisr1

iTrader: (5)

all depends on your finance rate IMO. If you are getting a great rate, put as little down as you can get away with.

MB33

iTrader: (6)

I just put 2k down on my 03 financing the rest need to build more credit history =)

davidv

iTrader: (2)

This is not a 350Z unique question. It’s a personal finance question. Do what best suits your needs.

Z1 Performance

iTrader: (564)

huh? If you pay the cash towards a downpayment, it comes off the price you negotiate for the car, not towards interest

if you take that downpayment $ on day 1 after buying the car and send it to the bank, most of it will go towards interest, not principal - you have to follow the amortization schedule and see when the balance shifts to paying more principal vs interest

Celestial

You're right dude. Damn now I don't know if I should save up for a downpayment and how much :-(

E-licious

What? When I financed my car I made the first payment as usual, then made another payment in a week of around $10,000 and it ALL went to principal, none to interest. The amount that I paid in interest in subsequent months went way down as it should have. I ended up only paying a few hundred bucks in interest on that "loan".

Celestial

That's my point guys. If you put a downpayment down the dealer mafia will twist the numbers around somehow someway so that they get as much as they can out of it.

Another buddy of mine told me the same thing that his friend adviced him and many others to NOT put any downpayment when buying a car.

Once you buy a car interest is accruing on a loan, percent of your principal goes towards the interest. If you were to pay a huge amount AFTER purchasing the car that money will go against the principal owed PLUS any interest that accrued.

dhays

iTrader: (10)

From your questions it is apparent that you don't have a lot of experience or knowledge about loans and finance. You may want to learn a bit before your commit to an auto loan.

1) Any down payment simply lowers the amount of the car that is financed. NEVER negotiate a car purchase based on monthly payments. Negotiate a selling price and only after the price is agreed upon do you then see what the manufacturer has to offer in the way of financing. Compare their financing to what you can get through your own bank or credit union. The down payment has nothing to do with the price of the car.

2) Often there is a loan fee that is dependent on the size of the loan. The more you borrow, the higher that loan fee is. The higher the down payment, the less the loan, the less the loan fee.

3) Once you have a loan in place, most of the time any additional payments will go towards principle. You do need to read the loan docs carefully and understand what you are signing. However, if your loan payment is $250 and you make a regular payment of $300 (on time) then that extra $50 will go towards reducing the principle and reducing the term of the loan and the amount of interest that you will ultimately have to pay.

4) Despite items 1-3 above, a car loan is a bad financial move unless you can get 0% financing. Save your money and buy a car you can afford. If you can't pay cash, you can't afford it. If you always pay cash for cars, you will be way ahead of the game financially down the road.

Celestial

So basically until I got 25 grand I can forget about my Z? :-(

Celestial

Guys to make the long story I'm looking for a black 08 stick hardtop either enthusiast or track model. I want to get a good deal and not get screwed by the dealer and I don't know how much IF ANY downpayment I should put down so I'm looking for help :-(

davidv

iTrader: (2)

Money is tight for auto loans. Consider 20 percent down.

Celestial

K thanks man

NoHyperbole

Please just do what dhays said. Make a $500 payment to yourself each month without fail. In 5 years, you will be able to buy the $30,000 car of your choice and not have to worry about financing. That's the easiest and most sensible way to go about it.

E-licious

+1, especially for a sports car, which is a luxury. If you need to take a loan out for a $5000 beater so you can get to work, that's understandable. The Z is not a beater.