How many of u guys finance your cars?

**rajiv1998** · 05-27-2010, 12:58 PM

Well guys im in the process of buying a new car. Iv got a few in mind but now the financial part comes into play so I have 2 questions...

How many of you financed a car?
Is it better financing or paying a lump sum ammount?

I ask because I got a quote from the bank for about $300 a month if I put 10k down (assume the car I want is 20k) and then finance the remaining 10k. My interest charges will be about $50 a month and im looking into paying it off within 36 months if I finance. I am in the position to give the 20k cash to the seller, but is it a smart move? I know I cant see the title untill its fully paid off and for some reason if I want to sell it before its paid off, I will need to calculate how much I owe and how much is profit. Also when u finance U NEED FULL COVERAGE! I thought if I paid him the full amount (get an authorized cheqe of some sort) I can wash my hands clean and only worry about insurance.

Your inputs.

**SiggyZ** · 05-27-2010, 01:01 PM

You're always going to be better off paying down as much as you can or just paying the car off in full.

**86 IROC-Z** · 05-27-2010, 01:16 PM

You're paying 20k for the car either way.

With financing, not only are you paying more money for the exact same thing, but also, an open account will be listed on your credit score.

Considering you have the ability to pay the 20k straight up, I would say do so because it saves you what I mentioned above.

The only situation I would suggest financing is if you're emergency savings account isn't even at its minimum (3-months worth of salary). But if that's the case, you should be buying a new car anyway.

**SouthernBornThriller** · 05-27-2010, 02:14 PM

Pros of paying in full:

1. Easier to haggle (hard for people to say no to large amounts of cash).

2. You won't pay interest.

3. You don't risk ruining your credit if a check gets lost in the mail.

Cons of paying in full:

1. Does nothing to improve your credit score (which is important if you're young and have little/no credit - not so much for older and have an established good credit score)

**2000redcamaro** · 05-27-2010, 02:25 PM

the only thing about paying it off in full it that if it is totaled a few months after you get it you most likely will not get the full amount back. if you pame payments you will not be out as much in that case. but if you have the cash and it will not put you in a hard place later by spending it the goe for it.

**krese** · 05-27-2010, 02:40 PM

it depends on your interest rate.. if it is low then finance... better to spend somebody else's money if the rate is low and SAVE yours in case you need it.

**Aetos** · 05-27-2010, 03:04 PM

Originally Posted by SouthernBornThriller

Pros of paying in full:

1. Easier to haggle (hard for people to say no to large amounts of cash).

2. You won't pay interest.

3. You don't risk ruining your credit if a check gets lost in the mail.

Cons of paying in full:

1. Does nothing to improve your credit score (which is important if you're young and have little/no credit - not so much for older and have an established good credit score)

That's actually a misconception(if its from a dealer at least). Dealers want you to finance from them, not pay it all in full. Sales people usually get a bonus on their commission if they sell a car with loans.

I'm paying $198/month on my WS6

**StuntmanMike** · 05-27-2010, 03:17 PM

Originally Posted by Aetos

That's actually a misconception(if its from a dealer at least). Dealers want you to finance from them, not pay it all in full. Sales people usually get a bonus on their commission if they sell a car with loans.

I'm paying $198/month on my WS6

Yeah, they make all that money on interest.

If you can pay cash, that's prob the smart bet if you're not worried about improving your credit at all. Since you were able to save up 20k, that tells me you're good with money, so the credit thing is prob not an issue.

As far as the insurance, either way I'd put full coverage on it if I were you...it'd suck to drop 20k on the car, then have it get hit by an uninsured motorist or a hit and run, then you'd be shit outa luck.

As far as payment, I was paying 189 on my Formula.... financed 7.5k for 48 months, starting in Oct '07. Just paid it off 3 days ago, it felt GREAT to pay it off so early.

I have nothing against financing....unless I buy a shitbox, my next car will be financed too. I just can't save up that much money that quickly....I can make payments fine over 4 years, but it'd take me almost that long to save up the cash to buy it outright.

**allbaugh_04** · 05-27-2010, 04:08 PM

I paid cash. No sense in paying interest.

**rajiv1998** · 05-27-2010, 04:28 PM

Originally Posted by StuntmanMike

Yeah, they make all that money on interest.

If you can pay cash, that's prob the smart bet if you're not worried about improving your credit at all. Since you were able to save up 20k, that tells me you're good with money, so the credit thing is prob not an issue.

As far as the insurance, either way I'd put full coverage on it if I were you...it'd suck to drop 20k on the car, then have it get hit by an uninsured motorist or a hit and run, then you'd be shit outa luck.

As far as payment, I was paying 189 on my Formula.... financed 7.5k for 48 months, starting in Oct '07. Just paid it off 3 days ago, it felt GREAT to pay it off so early.

I have nothing against financing....unless I buy a shitbox, my next car will be financed too. I just can't save up that much money that quickly....I can make payments fine over 4 years, but it'd take me almost that long to save up the cash to buy it outright.

Yeah I saved for 4 yrs, and my parents are giving me a little. I dont care about credit score. My finance rate istn that bad because its only $50 a month. But yes at the end of the 2 or 3 years, ill end up paying thousands more. Either way im getting full coverage because im looking at a 2004 cobra. But yes at the end of the term, I will be paying for the same thing. Just wanted a little input

**rajiv1998** · 05-27-2010, 04:33 PM

Originally Posted by SouthernBornThriller

Pros of paying in full:

1. Easier to haggle (hard for people to say no to large amounts of cash).2. You won't pay interest.

3. You don't risk ruining your credit if a check gets lost in the mail.

Cons of paying in full:

1. Does nothing to improve your credit score (which is important if you're young and have little/no credit - not so much for older and have an established good credit score)

How is this? They guy will be getting the $ either way? Unless i take 20k liquid cold hard cash in an envolope and hand it to him. If I get a authorized cheqe for 20k (bank cheque) how long do you think there will be a hold on it? Can the guy go to the bank the next day and cash it? The sale is from a private party.

**Nhra Firebird** · 05-27-2010, 04:40 PM

Originally Posted by rajiv1998

How is this? They guy will be getting the $ either way? Unless i take 20k liquid cold hard cash in an envolope and hand it to him. If I get a authorized cheqe for 20k (bank cheque) how long do you think there will be a hold on it? Can the guy go to the bank the next day and cash it? The sale is from a private party.

your best negotiating tool is your ability to take or leave any deal that doesn't satisfy you. Walking out of the showroom still gets attention.

**knightryda01** · 05-27-2010, 04:43 PM

Offer the guy a large cash payment say 18,000 or a little less then he wants. If he accepts he can meet you at the bank where it won't matter if your paying in cash or financing cause he will have the money in his hand. He can sign her over to ya right there.

**cammed goat** · 05-27-2010, 04:48 PM

I finance mine. Put down $3500 and pay 335/mo. When I got the car, my initial interest rate was 11.9 and it dropped to 8.2 a year later. I am financing for 72 months. My insurance is a little over $1200 for a 6 month policy with full coverage. The insurance WAS cheaper($950 for 6 months) but with the rising rates, I have to pay more I guess. And I have no points.

**Nhra Firebird** · 05-27-2010, 04:49 PM

Originally Posted by rajiv1998

Well guys im in the process of buying a new car. Iv got a few in mind but now the financial part comes into play so I have 2 questions...

How many of you financed a car?
Is it better financing or paying a lump sum ammount?

I ask because I got a quote from the bank for about $300 a month if I put 10k down (assume the car I want is 20k) and then finance the remaining 10k. My interest charges will be about $50 a month and im looking into paying it off within 36 months if I finance. I am in the position to give the 20k cash to the seller, but is it a smart move? I know I cant see the title untill its fully paid off and for some reason if I want to sell it before its paid off, I will need to calculate how much I owe and how much is profit. Also when u finance U NEED FULL COVERAGE! I thought if I paid him the full amount (get an authorized cheqe of some sort) I can wash my hands clean and only worry about insurance.

Your inputs.

If you spend 20k on a car i would make sure to have full coverage.

**rajiv1998** · 05-27-2010, 05:11 PM

Originally Posted by Nhra Firebird

If you spend 20k on a car i would make sure to have full coverage.

Yes im getting full and not liability. The only thing with financing is that I can pay it off whenever I want and however long. But the flip side is EVERY month Ill have to put away $$ for it. By cash price, doesnt that mean the buyer gives solid cash? or cheque???

**Nhra Firebird** · 05-27-2010, 05:33 PM

Originally Posted by rajiv1998

Yes im getting full and not liability. The only thing with financing is that I can pay it off whenever I want and however long. But the flip side is EVERY month Ill have to put away $$ for it. By cash price, doesnt that mean the buyer gives solid cash? or cheque???

a check is fine

**raynor139** · 05-27-2010, 05:38 PM

I financed mine with my credit union so my interest is extremely low.

**Z28Thunder** · 05-27-2010, 05:46 PM

Originally Posted by cammed goat

I finance mine. Put down $3500 and pay 335/mo. When I got the car, my initial interest rate was 11.9 and it dropped to 8.2 a year later. I am financing for 72 months. My insurance is a little over $1200 for a 6 month policy with full coverage. The insurance WAS cheaper($950 for 6 months) but with the rising rates, I have to pay more I guess. And I have no points.

Ouch 72 months???

**95camaroZNC** · 05-27-2010, 06:50 PM

Originally Posted by SouthernBornThriller

Pros of paying in full:

1. Easier to haggle (hard for people to say no to large amounts of cash).

2. You won't pay interest.

3. You don't risk ruining your credit if a check gets lost in the mail.

Cons of paying in full:

1. Does nothing to improve your credit score (which is important if you're young and have little/no credit - not so much for older and have an established good credit score)

I financed both my LT1 car and my Trans am, my credit is damn good for a 23 year old kid. My payments are cheap (100 a month) and get drafted right from my account so ive never been late.