Well, im planning on trading my accord to the dealer to get one of these wonderful boxes, and I would like to knwo what would the monthly payments look like. Trade in values around 4000.

 

I financed thru TFS for 5yrs @ 4.5%. My box was $15050, put $2000 down. Payment is $251/mo.

 

I hate being 19. My credit isnt really established, other than my cell phone. Will tha effect my monthly payments?

 

absolutely, you'll probably get 11% interest rather than 5 or 7%... so how big a deal is it??

things you should know...
#1... you will pay sales tax on the purchase price, but you will not pay sales tax on the trade in money, so essentially a $14k car minus a $4k trade in menas you will pay tax on $10k... don't know where you live but let's say 8%, so $800... loan amount is $10,800
#2... a rule of thumb is to divide by 50 to get an approximate loan amount... so $210 to 200/month is what you are looking at, but this is based on about 8% interest...
#3... always pay your car note on time, never ever skip... 30 days late payments show up on your credit...
#4... a car note is a great way to establish credit...
#5... a cosigner will help you get a lower percentage, but that person will have to be able to afford the payment on their own credit... so if your mom has good credit and lower income but is paying on the house, she can't finanace your car to help...

 

That is wrong. Regardless of down payment you are going to pay tax on whatever the car costs. If the car costs $14,000 and you put $4,000 down you still pay tax on $14,000. It doesn't matter what form the money is in - trade in, cash or a genie pops out of a bottle and poofs a great big pile of money into existance - the government will always get theirs.

Basically you want to put as much cash down as possible in addition to your trade to get your payments down. Don't opt for any of the dealer accessories, you can always buy them for cash at a later date. And DON'T be fooled by any salesmen that make bogus claims. Don't buy any of the bogus undersealant or cloth protection or any of that crap. About the only thing you will not be able to avoid is the processing fee, which can range from $39 to $400 ish. Just buy the car as it comes from the factory, nothing else.

 

Mine was 15,900 minus 4,000 down for 48 months $315 per month!

 

The wonder that is the Internet

 

You wouldn't be doubting the credibility/accuracy of anything that has been said, are you??? We all know that if it is on the internet, it's gotta be true. Oh, and if someone says something, they must know what they're talking about.

 

well, since you obviously think I am incorrect, then explain to me why I my trade in of $18,000 on my $15,000 xB had ZERO taxes?? take 5 minutes of your day stop by and talk to ANY dealership, ask them about the taxes on trades... you obviously have no clue... I have bought and sold a dozen cars, I have no question as to how the taxes work on car purchases...

here's the explanation... you already paid tax on the first car, since it has remaining value and it is being traded in on a barter type system, then there is no tax system in place... so the value of the purchase is the difference between your new car value and your old car value... you are getting ripped off if you are paying taxes on your trade... PERIOD...

 

sorry, try again

 

trade value is deducted before tax calculation... I stand by this fact...

down payment and trade are completely different forms of payment...

here's an equivalent... go to store, buy an item for $5+tax... then go back the next day and return the item for store credit, buy an item for $10... total tax paid on second day is based on sales tax of difference... so trade in value was $5+tax, out the door total was $10+tax... total paid on second day was $10+tax MINUS $5+tax... according to OMAC you would pay sales tax on $10 the second day and the previous sales tax would be disregarded...

if it weren't for the sales tax benefit of a trade fewer people would take the approx 10% hit on the trade value VS the private party value...

 

This is true for you because you live in Colorado.

In Colorado you can reduce the sales price by the value of a trade-in when calculating sales tax.

However, California law does not allow for this, so here we have to pay sales tax on the amount the new vehicle is being sold for, regardless of trade-in amount.

The same goes for manufacturer or dealer rebates, some states allow tax to be calculated after the rebate is taken off the price, while other states require that the tax be calculated and then the rebate taken off of that price.