Hey,

Right now I'm saving up money for a pretty good downpayment but I dont know where to save up until...

my current plan is to save up 3K (right now I have 2) and plus when I sell my corolla for another 5K I should have around 8,000 for a downpayment.. my goal with this is to have the lowest montly payments as possible so do you guys think this is enough?

-Emo

 

Yeah I would say so :D

A stock auto tC with 8,000 down and a Excellent Credit (6.0 apr) $152/month for 72months. Not too bad

 

I'm putting $10K down. I would rather put more down then give the bank my money.

 

You guys make me feel cheap. I'm putting 3k down and whatever I get for my truck.

 

i'm a 28 year old accountant and i only put down tax and tags ($1,700).
i'm financing 17,000 over 5 years @ 5.1% and my payments are only $320 a month. Invest that other $$$ in stocks or something. Chances are you're not going to have this car in 5 years anyway.

ps...dpeending on your age, you won't qualify for tier 1 financing. i'm married, have good-excellent credit and own a home and i still am tier 2.

 

i am just a new college grad, 25, and just get a job rencently, city toyota quote me for 4.9% apr, guess i am in tier one......

i will put all my saving money toward downpayment, guess that's around 8 - 10k. and i will try to make the car pay off in 24 month. car's value going down each year, not worth to pay the bank my $$ for that.

 

i hope u guys dont' go all crazy with the downpayment.. save a few Gs for insurance and aftermarket parts.. btw Im 23, financing through my credit union at 3.79apr (their lowest available) I checked my credit scores back in January when I was planning to get a Lexus IS300 which I just turned 23 for a couple months and my scores were 754 for equifax 769 for experian and 756 for transunion.. I hope those r good scores.. what is the highest? can't believe that since then its already 6 months and the tC is out.... I never thought that I would have waited this long for the tC.. still driving my beater though coz my white 5spd standard hasn't come in yet!!!

o yeah forgot.. i'm gonna put down 4-5G for downpayment..

 

72 months??? that's a freakin long time man... you're gonna be losing a lot of money.

 

what's the point in putting that much down? seriously, wouldn't you rather have a $300 payment and 10k in the bank then a $100 payment and zero in the bank? sure, you're paying more interest in the long run (20k loan over 5 years = around 3500 in interest) but if you put 10k in the stock market right now instead, you would have a chance at more than 3500 in gains.

besides that, you guys are young...you should save that money for a house. you can get into a nice house ($250k) for as little as $15k down plus closing costs. seriously, consider saving you cash (speaking from experience)...you can always pay the car off sooner if need be. My payments are $300 on my tC, but i'm probably going to pay an extra $100 here and there.

 

Try to pay the loan off in 2-3 years versus 5-6 years. Financing companies love the 5-6 years because just as your loan is paid off, it is time to buy another car and another 5-6 years. Plus you will be saving a ton of interest money by paying off years in advance.

Kevin

 

I think I am going to put 3K down, since that is what I'm hoping to get for my 95 Camaro. Trying to keep the payments around under $300/month.

I think I would finance $15,000....

 

paying 264 a month for 60 months w 4.25% with a 5 year payment, and plan on paying more than the usual each month, a couple hundred here and there adds up! Hope to have in paid in about 4! And yes, put the money in the bank, or the market, or a combination of the two!!

 

How much did you put down? I am trying to get my payments around that, as soon as I sell my stang I should have 5k to put down which will put me around the 200 mark for payments.

 

i just put it ALL down, and got everything i wanted from the dealer so i didn't have to buy anything afterwards! You should have seen the look on his face when he asked me how much i had for a down payment, and i said ALL of it...LOL....Priceless

 

My dealer had me at 7.10=342 a month for 60 months, too much so I went to my credit union and they got me a 5.49=329 a month for 60 months, so much better then the dealer. Oh yeah! thats with a 1K down.

 

The only time that it makes sense to stretch the payments out is when you are getting an interest rate that is less than inflation. Inflation is less than even the tier 1 rates, so it would be best to make the down payment as large as possible and reduce the term of the loan.

Good point. I took a course many moons ago called "engineering economics" The first half of the course consisted of boring stuff like pricing the cost of development, design, manufacturing, etc. The second, and more useful, part of the course was called "How to survive on an engineer's salary.

Rule #1 was "Don't buy a new car. Buy a used car and let someone else pay the depreciation."
Rule #2 was "Don't rent your dwelling. Buy a house as soon as you can"

I followed those rules, and paid off my house (in SoCal) before I was 35. Without house payments, I can afford toys like our xB.

 

I think the "don't buy a new car" applies if you are one to buy/sell a car every 2-3 years. For me, I keep cars 8-10 years so buying a new car is pratical for me. By the time I sell, the car has nearly fully depreciated.

Kevin

 

I took out the minimum loan of $5000 in order to get the college grad discount. They gave me 5.2%... I'll just pay it all off; 5.2% is more than I'm earning on my invested money at the moment.

 

I feel you on that one scionracerxb! It was nice to buy a car that was inexpensive enough so I didn't have to finance it. I just picked up my Black Cherry Pearl tC last night and it is awesome. Time to go for a drive....

 

lol wow... I didnt expect so many comments on this

anyway... a lot of you are asking me (us) why such a big downpayment? well I'll tell you why...

Right now... I am 19..just finished High School (starte one year late) and about to go to college in the fall....

my current job is 11/hr making around 1300 a month after tax... I know..that's actually pretty good for a 19 year old but when you get a future 300 tC payment, a 250/mo Insurance on it... a cell phone bill, cable bill... gas, food and all that.. and when you add college into the mess... it gets nasty! this is why I want to finish paying off this car asap and get it over with

-Emo