Large auto loan down payment?

[locolady]

I'm getting my financial house in order for retirement in five years. My company has a guaranteed plan plus my 401k together I will get a decent monthly pension. I am post BK7 and now I'm out from under a underwater home and all my credit card debit. I got very sick a few years ago and once I got late the ship just keep sinking. So now I live  with no debit or car loan with a very affordable rent in a senior apartment complex. I still have my work car but I want a nice car for church and when I go out. I say this because I understand some might say why get another car but at this time in my life but  it's what I want. 

  The car I want is 52k (2011 Audi) but I no that getting any decent financing  is out of the question for a couple years with the BK.  So I was thinking I'd buy a 2008 model of the same car @32k and put 60% down to start a new auto credit line, With my income and no bills I could afford to pay it off in 36 month. I'd like to trade it in for the new model  two year later which will be my last  two year  to work.  My hope is the trade in value will still be at least what my down payment was(19k) . I will have my down payment saved by October  2011 and will like to purchase the car then. I'm prepare for a higher interest rate because of my credit score, but I will not pay over 14% for 48 month loan. Should I just wait save my money and pay cash for a new one in two years? I could save that amount of cash for a new  car, but I really don't want to wait 2.5 years. Does this make sense to anyone I ask because there are smart people on here and I need some outside input.

THANKS

ps I have my four month emergency fund set aside already.

[jmontes77029]

I think you should go for it. It seems you have the income to afford it. With 60% down I don't think you should have much of an issue getting finance. But, don't pay a higher APR than you feel comfortable with. Good luck and congrats on your retirement in 5 years.

[Anonymous]

Which car? As per KBB a Q7 will retain 39% at 5 years where as a A6 only retains 25%. So that obviously matters.

I would check local CU and/or even Audi website to see what your rate would be too. If you plan on buying nothing other than an 2008 or 2011 Audi in the next 6 months or so and group your inquiries within 14, 30, or 45 days (depending on scoring model and CRA) they would only score as one inq anyway, so no harm done.

Just my humble opinion, but I buy only new cars now. I do it because I have found that my loans equal out at a maximum of the 26 month point. Meaning that what I owe at 26 months completed point is what it cost to buy the exact same car that is 26 months old. My thoughts are at least I know what happened to that car that I owned for that 26 months.

My example is wife's Sequoia (which is actually a 2008 that we bought new in 2008.) A 2011 SR5 will cost about $41000. A 2009 of the exact same model will cost roughly 30000. At 5.99 for 60 months after the 18th month you are even (as per KBB and amortization chart) So sure you will pay less for the 2009 because the 2009 is worth less, but if you financed the 2009 for 44 months the payments would be roughly the same as the new 2011. So be it that the loan for the 2009 will be only for 44 months where as the 2011 would be 60 months, but once again I want the 0 through 30000 miles as well as the 30000 through 75000 miles.

I know I'm going to get beat up by some people that will say buy used or I only pay cash for my cars. But just providing an honest thought process for the OP who seems to know that they are going to buy a "Brand New" car within 2.5 years regardless.

YMMV