84 Auto Loans Month

Please do not do that to yourself. A 7 year car loan is a horrible idea. You will be "upside down" on the car for the first 4 years. Then when you change your mind in a few years and trade again, you'll end up financing negative equity into the next loan. If you have to finance a car for 84 months - you cannot afford it. If you like to get new cars every few years, you should really consider leasing. In a lease, you never worry about being upside down.

2007-05-20 14:40:19 by rza2k

new phase of southwest there it is no they saw the car payments they still live in and the fourteen fifteen hundred dollar a month rent %uh they ...

Ok if you get a Auto loan and finance it for 84 months , and then say you get a decent paying job and want to pay it off sooner . What is this called ? When you get the loan you have to make sure that "this" is an option.I was told before that you can not just send them over the amount of what your payment is , I mean you could but , I was told something that they will not credit you because it has something to do with Interest.

Say if you get a loan for $9,000 @15% interest and your paying ,oh say, $133.00 a month for 84 months.Then you decide you want to pay it off sooner and you send them $300.00 a month.Aren't you getting ripped off by sending in more money because it will be interest ?

It's hard to explain.

So what should a person ask a auto dealer about financing options , so they will end up not getting ripped off ?

Joe, Try getting an online auto loan quote. http://www.simpleautoquotes.com/Auto-Loa ns.html The automated form will give you results based on your credit and financial situation. It's free and you can get an answer in minutes.

2009-02-10 06:32:28 by Joe

I have great credit and am looking for a low-interest yet longer-term auto loan (like 72-84 months). Thanks!

Google it or try capitalone.com

2007-04-13 20:12:33 by Doogie

Ok if you get a Auto loan and finance it for 84 months , and then say you get a decent paying job and want to pay it off sooner . What is this called ? When you get the loan you have to make sure that "this" is an option.I was told before that you can not just send them over the amount of what your payment is , I mean you could but , I was told something that they will not credit you because it has something to do with Interest.

Say if you get a loan for $9,000 @15% interest and your paying ,oh say, $133.00 a month for 84 months.Then you decide you want to pay it off sooner and you send them $300.00 a month.Aren't you getting ripped off by sending in more money because it will be interest ?

It's hard to explain.

So what should a person ask a auto dealer about financing options , so they will end up not getting ripped off ?

The first thing you want to ask is whether or not there is a pre-payment penalty. Some lenders will add a pre-payment penalty in order to offset their costs and potentially offer you a lower rate. If you intend to pay it off early, you want to make sure there is no penalty for doing so.

When you send in a payment (lets say you send in 1000 one month), that exceeds what the lender is expecting, you should contact them and explain how you want it applied. Do you want it applied to the principle or do you want to have the loan re-amortorized (which would lower your remaining payments). You will want to double check with your lender, however, to make sure they are willing to re-amortorize.

Generally, if you pay your balance off early, you will be credited back finance charges that have not been accrued. Using your example:
9000 at 15% for 84 months means you will pay about $5588 in interest over the life of the loan (total amount financed would be 14,588). If you decide to pay the loan off after 72 months, you will have only accrued approx 4700 in interest, so the difference you would not pay.

2009-02-10 06:34:55 by Joe

I need a big help here with calculations. Im purchasing a car and trading in my old one. Here how it goes

New Car price : $ 17,900
Balance Loan on Old car : $ 12,000
Old Car Trade in Value : $ 8,500
Annual percentage rate : 7.99 %
Sales Tax GST+PST : 11%
Term Of loan applying : 84 months

According to the dealer ill be paying $ 369 monthly based on the input given. Are they right?? Im trying to figure out but i suck when it comes to calculations. Pls help. Thanks for your effort.

Thanks everyone for all the advice, im getting the clear picture now. It definitely saved me from what i must say the biggest mistake ever. Thanks. :)

Cheese is spot-on in her explanation. I am only joining to advise you think long and hard about this decision.

Why?

Because you are flipping the negative from one car to another. You are taking yourself from being a little bit upside down, to completely buried. That makes a bad situation even worse.

I doubt there is $1900 profit in a $17,900 car these days. I know thats not the case with many domestics. But nevertheless, look at it this way.

You are currently $3500 upside down.

The car you are buying is worth $17,900 on its very best day. You are financing not only the car, but tax, fees, and the negative from the trade. So, as Cheese illustrated, you will owe about $23,200 on a car worth $17,900 on its best day in the sunshine. You went from $3500 flipped, to $5500.

But it gets better

That car will depreciate even more in teh next 60 days - really as soon as you signe the contract. Lets say it drops $4000 (realistic). You will then be $7500 upside down.

You are taking the longest possible loan. That means that you will take about 4-5 years to break even, if then. You will not be able to get out of this car for a very long time, so make sure you will love it forever.

Trading negative from one loan to another is one step on a path to financial disaster.

2008-09-15 23:22:14 by pegger