@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
To answer both questions, no negative equity HOWEVER, at 1% the interest is $1200 for the entire term, you can't get the rebates and get 1% rate so I had to make a choice I'd rather not have the interest then have the 10K in rebates in a much much much higher interest-rate because now you're straight paying the value of the car off with a little going on but the interest most of it's going on the principle that kind ar so I had to make a choice I'd rather not have the interest then have the 10K in rebates in a much much much higher interest-rate because now you're straight paying the value of the car off with a little going on but the interest most of it's going on the principle of that kind of low low rate two years worth of payments will take the balance down about 10 K I don't think it's going to depreciate that fast if you keep the mileage low
Congrats on the 200s. My suggestion is to make sure you keep this car for the duration. My opinion is that you would have been better off with the 10k in rebates, the problem with these rebates is they kill resale value by 10k so if you pass on the rebates you take an even bigger depreciation hit. Basically 10k plus the regular 4-5k that we all take as soon as we drive a car off the lot. If your in for the long haul the 1% interest will clearly help a great deal but I am afraid if you trade or sell in the first 4-5 years of the loan you will be upside down by a pretty good bit. One other thing to take a peak a is the GAP insurance. GAP has a limit to how much over fair market they will pay so if your car is totaled or stolen during this first 4 years or so you might be stuck with a portion of the payoff despite the GAP. Please don't take my comments as critisim, they are just things to consider. One thing to consider is your warranty, Chrysler has an excellent warranty already, it is 5 years 100,000 miles so I don't think they warranty the dealership sold you has much if any value. The good news is you can cancel a warranty and get your loan balance reduced if you choose. That might be something to consider.
The 5yr/100k is just a powertrain warranty, the bumper to bumper is 3/36, the extended warranty is bumper to bumper with only a $100 ded - and we will probably make another payment or two every year more than needed to pay it down quicker, esp with 1% ... the mileage will never be more than 10-12k a year, so the depreciation won't be that bad, and by summer I'm going to be debt free minus my 3 car payments lol
First ting is first- this is my opinion from years of car sales and my opinion. I dont have all the facts so I cnt know for sure what was the best way. I am just rying to understand yoour decision to take 1% over 10K in rebates so please dont be offended.
Ok so I have a few things to ask.
1st what interest rate id they offer other than the 1%? Or did you go that far?
2nd are you sure you werent supposed to get some rebates? I didn't think you gave all of them up when opting into the financing.
To be brutally honest you are around $14,000 to $16,000 upside down. Mileage will help but you have about 5.5 years until you will be able to reasonably trade it in with negative equity that could be rolled into another car. That time frame is based upon te 2015 200S with 4k miles selling for list price $18,995 before negiotation. So you know they probably paid about $16k to $17k for it. So figuring that depreciation and looking at some scales is how i got to ~ 5.5 years
so here is my math
You
Loan $36,000 APR 1% payments $450 84 months total paid back (IF KEPT full term) $37,290 interest total $1,290
@ 36 months principal balance $20,880
Opt 1
Loan $26,000 APR 9% Payments $469 72 months total paid back (if kept ful term) $33,859 interest total $7,859
@ 36 month principle balance $14,738
Opt 2
Loan $26,000 APR 6% payments $503 60 months total paid back (if kept full term) $30,159 interest total $4,159
@ 36 months prinicpal balance $11,341
A lot of times you can get a bit better rate with shorter term and also better LTV. Did you check local credit union or preapproval anywhere else?
Interest you are paying of $1290 is great and I understand you will be making extra payements but you are $10,000 behind the ball already. Had you gone with regular financing any additional payments also go straight to Balance and would decrease the interest paid as well. The main issue is if you want to trade you are way behind. Had you gone with any other payment options and you refinance you could possibly lower interst even more. If you go trade it in at the larger interest options you have far less balance and would not, of course, pay all the interest. These payments and interest are all estimates. I am not dogging you and perhaps this is best for you but for 90% of all people the rebates are far better option. I am doing this not to hassle you but to bring this to light in case someone else gets into a situation similar to yours that perhaps they will be prepared and understand all the options available to them. Interest rate is just one thing to consider in the big picture of buying a car. Every ones situation is different and you just have to take it all into consideration.
