Ok, i go to the dealer tomorow to pick up my car. I've had one of you guys answer this, but I was hoping to get more opinions and/or more personal situations.

I'm putting a little over $10,000, but am financing for 5 years. Do you think I'll end up upside down in this car?

Also, what kind of financing are you all doing? Anyone else doing 5 years?

Thank you guys so much.

 

You won't be upsidedown with that big of a down payment. But why not take that money and invest it? Over 5 years you will more than make up for it.[img]/w3timages/icons/smile.gif[/img]

 

all you are going to do is just lower your monthly payments....you will probally be better of investing it or finding a good savings account or one with a good intrest rate.....

The sky is the limit
350gt Ride on [img]/w3timages/icons/laugh.gif[/img]

 

Me:
$35K price, financed 31K, put 4K down...i have excellent credit (score is above 750), got 4.69% over 5 yrs. im paying ~$580/month

A good estimate.....for every $5,000 you put down, it will lower the monthly payment by $100, assuming its a 5 yr loan


<font color=green>-Rambo</font color=green>
G35c 6MT DG/Willow

 

I'm not exactly sure i follow. Do you mean put the 10G into an account and then every month withdraw like $200 to help make the payments. So that would leave me with practically the same payments, but I would end up with extra cash because of the extra interest i earned?

Sorry if i'm being silly. Thanks.

Brian

 

Actually take the 10k give it to a good trader or buy a house, apartment or condo and lease it out. Take the dividend or extra from the lease and use it to help pay the monthly on the "G", is one way to do it. This way you keep the $10k make money on top of it and still get to drive the new car.
S@#$ I am starting to sound like my Dad![img]/w3timages/icons/laugh.gif[/img]

 

haha, i'm 22, i don't know crap about traders or renting houses or apartments. So that might be a little in too deep for me. I think i'd be good with a savings account or CD or something like that, no?

 

I say put the 10k down on the car so you're not strapped with a large(r) monthly payment and ensures that you're not upside-down on the car. And when possible, preferrably early on, pay a little extra each month to accelerate the payoff.

 

if in fact you can turn the deposit into a rental property, fine. but investing in bank or cd won't cover the interest you pay out.

stocks, if you pick a winner, but these days, who can judge.

 

Thanks guys, all I've been thinking about all night has been numbers. I think i've figured it out. I'm going to take about 6000 and put that down on the car. Then i'm going to take the rest and invest it, probably mutual funds or something (I feel good that the market will start to strengthen again, but that's a whole nother topic). This way, I'll have a good head-start on the car, but I'll also have a good sum of cash on the side that I could use if I get into some kind of financial emergency.

Remember I'm just 22, so while i have a good job right out of college, I also don't have as much room for error as many of you guys. haha. I sure hope I'll be able to leave these number worries behind if i decide to drive the G off the lot.

 

Try telling your dealer (if thats who you are financing through) that you already have been approved for X% from another bank (try like 4.4%). Then simply say that you will use their finance department only if they can beat that percentage.

They should do it for you, especially if you have good credit, or a co-signer. It also helps if you actually have been approved through another company, this way if they call your bluff you have something to fall back on.

I did this and ended up with 4.14% on $35,000 for 60 months. But again, I actually was going to get 4.4% from the other company if they didn't go for it.
Good Luck.

G35Coupe B/B 6MT Aero/Premium

 

Unless your loan is less than 4% apr, you might as well put all your money down on your car.

If you really want to get into a mutual fund, make sure it's a no-load. Vanguard has a good Dow Jones based fund that doesn't charge much at all. Administration fees will really cut into your profits. Plus you have to factor in the tax if you do make money. Short term is the same as your tax bracket (30%+), long term is 10%. Taxes on stocks bite unless it's a retirement account.

You're young. Save your money for a condo or duplex. Real estate will beat stocks every time, if you choose right, plus there's the tax savings. In a couple years the real estate bubble will burst and you'll be able to get a good deal. Expect that to give you a 4% return - compounded - a year, conservatively, plus average about 3k+ a year tax savings on a 200k investment from a 30% tax bracket. There are tons of calculators out there to spell it all out for you.

"Moderation in all things, including moderation."

 

I won't waste putting this in a new thread. But I'm now a proud owner of a premium/DG/MT G35C!!! It's great, I'm glad to be part of the familly.