Cakebatter
All Star
Yep. Honda Accord Sport is $30k. Put down $5k and borrow $25k @7% interest for 60 months and you looking at a $500 car payment.
Monthly car payments hit record high of $712 in May
- Thread starter Bunchy Carter
- Start date
How much money yall putting down? 3K?
I guess it varies from person to person but for every $1000 you put down your payment only goes down between $15 and $18 a month. It's all relative. Imagine what people pushing a new S-Class are paying. And they aren't really rare.How much money yall putting down? 3K?
nikka thats the issue. you only supposed to pay 500 a month for an S class. not no god damn Honda lol.
and if you gonna buy a brand new car, you need to have at least 10-15K saved up. If not you should not be getting a brand new car. that's why there's a used car market.
beenz
Rap Guerilla
$712....SHEESH
I paid my car off 2 (2015 acura TLX) years ago, and I'm not looking back. my last car I paid off in 3 years and kept it a total of 8 years, which meant, I kept sending the payment to my credit union savings account, so when I bought a new car, I already had enough cash to buy it out right. I didn't do that ONLY cuz the interest rates on my current car were low, so it wasn't worth it to sacrifice my liquidity and invested that cash into something else.
I locked my credit on all three bureaus. I'm trying to NEVER use real credit again at this point (other than credit cards). I have a house, my car is paid off, and after all is said and done, I'm still contributing to my retirement, taking care of my kids and saving.
BY THE WAY, on my last two cars, the payments were $374 (on my 2008) and $298 (on my 2015).
at my age, I don't think having a fancy car is cool. a car is nothing more than a tool used to move me from one place to another. I just need it to be clean and reliable. and I will make sure I to do what I need to do to keep it that way.
I paid my car off 2 (2015 acura TLX) years ago, and I'm not looking back. my last car I paid off in 3 years and kept it a total of 8 years, which meant, I kept sending the payment to my credit union savings account, so when I bought a new car, I already had enough cash to buy it out right. I didn't do that ONLY cuz the interest rates on my current car were low, so it wasn't worth it to sacrifice my liquidity and invested that cash into something else.
I locked my credit on all three bureaus. I'm trying to NEVER use real credit again at this point (other than credit cards). I have a house, my car is paid off, and after all is said and done, I'm still contributing to my retirement, taking care of my kids and saving.
BY THE WAY, on my last two cars, the payments were $374 (on my 2008) and $298 (on my 2015).
at my age, I don't think having a fancy car is cool. a car is nothing more than a tool used to move me from one place to another. I just need it to be clean and reliable. and I will make sure I to do what I need to do to keep it that way.
beenz
Rap Guerilla
the general rule is every $5000 u finance gives u $100 in payment over 60 months.
Highest i ever paid for a car was 291$. I just changed my car and my payments is 260. I plan to pay it off in 1 year
i don’t understand people paying 6-700 for a honda accord. For that type of money you should be driving a mercedes or audi lol
Cakebatter
All Star
I tell myself, I shouldn't pay more than $250/month for a car payment, but hell, I pay a little more than that just for one of my kids tutoring. I'm more than willing to put down $20k as a down payment on a $30k car, but I can't realistically expect others to do that. Granted, I keep my cars for no less than 10 years/ 150k miles. I think most people buying Benzs and BMWs are just leasing to get a more "Reasonable" monthly payment, rather than dropping a big cash down payment to purchase it outright.
Sleepy Floyd
Superstar
I'll never understand why people buy things they can't afford
bigsausagepizzapapi
Rookie
Monthly payments don't matter, it's how much you financing total. Lower payments just mean you borrowed less or have longer term.
36 month loans @ 7%:
$35k - $0 down = $1,170/mo
$35k - $25k down = $398/mo
If you paying $300/mo for 48/60 months for an S class, means you put almost 90% of the car's price as a down payment or had a trade in of equivalent monetary value.
Loans have been cheap in the past couple years, no point in putting a big down payment down on a car if you getting 0-2%, you best invest that down payment and get higher returns (Treasury bills are paying 4%+ right now).
This statistic means nothing.
36 month loans @ 7%:
$35k - $0 down = $1,170/mo
$35k - $25k down = $398/mo
If you paying $300/mo for 48/60 months for an S class, means you put almost 90% of the car's price as a down payment or had a trade in of equivalent monetary value.
Loans have been cheap in the past couple years, no point in putting a big down payment down on a car if you getting 0-2%, you best invest that down payment and get higher returns (Treasury bills are paying 4%+ right now).
This statistic means nothing.
Cakebatter
All Star
I hear ya, but times have changed. Car loans are well beyond 5% now.
@gho3st if you are getting a used car how much money do you need to have saved up?
Crayola Coyote
Superstar
Hawala Man
All Star
These folks who finance cars are one job loss away from getting hemmed up. I worked at a dealership when I was in my 20s and would see all sorts of people getting fleeced. They love when women and seniors walk in to the point there were assigned sales men for that group.
Financial literacy should be taught in high school in America but nah that will mess up the formula to keep people in debt forever.
Financial literacy should be taught in high school in America but nah that will mess up the formula to keep people in debt forever.
