06-24-2010, 04:31 PM | #1 |
Drives: 2011 IOM 2SS/RS IOM Interior Join Date: May 2010
Location: Moncton, NB
Posts: 137
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8 Year Car Financing
Well, Im trying to make the deal work for my 2011 Camaro and it looks like the only real way to do it is to finance it for 8 years.
Other than the pro of being able to actually get the car at a payment that is reasonable but with the con of knowing that I have to make that payment for the next 8 years, is there anything else I am missing with the 8 year financing? How many Camaro owners here have financed their car for 8 years? Am I crazy or you cannot put a price on FUN?
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2011 IOM 2SS/RS M6!
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06-24-2010, 04:33 PM | #2 |
Drives: V8 american car Join Date: Aug 2006
Location: Dallas, Tx
Posts: 1,417
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just do that and later on just refinance it at a lower rate and put another down payment. which would keep the payment the same but you likely can pay it off 2 years sooner.
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06-24-2010, 04:39 PM | #3 | |
Drives: 2010 RY 2SS with Custom Stripes Join Date: Mar 2009
Location: Jennings, La.
Posts: 2,220
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Quote:
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06-24-2010, 04:42 PM | #4 |
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Yeah take it from me dude, just wait and save up some more money, get the car once you can comfortably afford it on a standard 5 year loan. I tried to buy my baby way too early and ended up having to trade her (after several more not so bright decisions). An 8 year loan is ridiculous, you'll probably end up paying double the car's value in interest....
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06-24-2010, 04:50 PM | #5 | |
The Milano
Drives: 2017 Firefly ShipWorks Join Date: Jun 2010
Location: Chicagoland (Crown Point, IN)
Posts: 1,877
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Quote:
My fatherly advice - don't do it.
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My first Love. She was called "Miss Carriage" (still cry when I think about her)
383, Muncie 4 speed, custom linkage mated to hurst short throw shifter. |
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06-24-2010, 04:55 PM | #6 |
Should have waited...
Drives: 2004 Mazda RX8 Join Date: Dec 2008
Location: NC
Posts: 226
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If you take a loan for $40,000 on an 8 year term, at 6.25% interest (the current new car rate offered by my credit union), you will in the end pay $60,000 in interest on a simple loan.
Put your figures in here: http://webmath.com/simpinterest.html and you can figure out how much you'll actually be paying, based on your real figures. |
06-24-2010, 04:55 PM | #7 |
Seeking more light
Drives: 2010 Camaro 2SS with RS package Join Date: May 2010
Location: Cheyenne, WY
Posts: 40
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I totally agree with your assessment. If you set up split payments to boot it may not hurt as bad. If you can afford it, pay more than what your monthly payments are. More money will go towards principle instead of interest. However, don't opt for a loan with like 20% financing at 8 years.
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06-24-2010, 05:01 PM | #8 |
I am the internets.
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Where do you even find an 8 yr loan?
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06-24-2010, 05:03 PM | #9 |
I am the Stig
Drives: Black w/ IOM stripe 1SS Join Date: Jan 2010
Location: Saskatoon, SK, CAN
Posts: 1,312
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well here's my plan if it helps any.
I was approved for a line of credit at a very low interest rate, but I was only approved up to 5k less than the cost of the car. SO I took the 6 year financing because it brought my monthly payment down a bit, and then once I get it paid down to the amount of my line of credit. I'm going to pay off the car loan with the LOC, and only be paying a third of the interest. (essentially re-financing to a MUCH better interest rate) there are a couple other reasons I'm doing it this way. I've never had a car loan before, and I'm trying to build up my credit to buy a house next spring. There are two kinds of credit. I don't remember the exact mumbo jumbo, but one is a fixed term (loan) and the other is indefinite term (LOC, credit cards etc) your credit score gets better faster if you have both kinds, and treat them both well. so this way it'll look like I paid off my fixed 6 year term loan in less than a year, and I'll be able to make payments on a new LOC to start building the "other" type of credit. This should help make it nice and easy to get a mortgage when the time comes. It's a win win win. I get lower payments because of better interest rates, credit people think I'm awesome, AND I get a Camaro out of the deal!
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2010 Camaro - 1SS, Black w/ Orange stripes
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06-24-2010, 05:04 PM | #10 |
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60 months Max
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06-24-2010, 05:05 PM | #11 |
Drives: 2010 camaross/rs Join Date: Jan 2009
Location: buffalo
Posts: 461
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get what you can afford
I went 4 years and 50% down, never go that many years the car will never be worth what you owe. You will always be upside down in the loan. Get a car you can afford and mod it as extra money comes available. Tons of hot cars for sale to play with, just dont live for your car. Yes its a camaro and yes it is sexy, but you can make other cars sexy and yet affordable.
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06-24-2010, 05:21 PM | #12 |
Camaro SL,UTs
Drives: 2010 Camaro SS/RS #16429 Join Date: Sep 2006
Location: South Jordan, UT
Posts: 7,358
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8 year loan for a car....
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06-24-2010, 05:30 PM | #13 |
Drives: Truck Join Date: Apr 2010
Location: Home
Posts: 2,439
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Never heard of an 8 year loan. If you can actually do that, I wouldn't. 60 months max and less is even better.
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06-24-2010, 05:40 PM | #14 |
Commits weekly crime
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Um, bad idea.
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2017 Camaro 1LT - Blue Barchetta IV
I fire up the willing engine, responding with a roar. Tires spitting gravel I commit my weekly crime. |
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