What's the rate?

[Booner72]

coworker told me that his Nissan Maxima payment is over 700 a month, said car cost 36K.  What was the rate he got??

My heart skipped a beat when I heard that payment.

Thanks in advance.

[Anonymous]

Too high, too much.

1K for a car per month. Pass.

I'd say that it's hard to say without knowing if he actually gave up anything for a DP and other variables.

[Anonymous]

I financed 36k for 72 months at 1.9% and my payments are 540.

What did they get?  Depends...  the payment could be due to high interest or shorter payments.  You would really have to ask.

[Booner72]

It's an Nissan for godsakes.  I figured there'd be some sort of auto calculator where you could put in all the known variables, aside from one, and then get the answer, though I couldn't find it. 

I know he traded in his old one........And he said it was six years.

Shall we agree it was a total ripoff bad deal?

[MarineVietVet]

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@Booner72 wrote:

It's an Nissan for godsakes.  I figured there'd be some sort of auto calculator where you could put in all the known variables, aside from one, and then get the answer, though I couldn't find it. 

I know he traded in his old one........And he said it was six years.

Shall we agree it was a total ripoff bad deal?

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This term of 72 months is what was needed to calculate the rate.

If I did it right I figured $36,000 financed for 72 months at a rate of 12% would be a payment of $703.81.

I would have to agree that it wasn't a very good deal.

ETA: At 13% the payment would be $722.67

[Booner72]

Thanks, MV.  12% isn't the worst I've ever heard, but the 700.00 is.  Crazy.  To each their own, I guess.

[boomhower]

12% isn't the worst rate I've ever seen but financing a $36k car a that high of a rate for that long of a term is beyond a horrible idea.  Very poor decision. Worst part is they will never be able to refinance it due to the long term and high rate they be horribly upside down until the very end of the loan.   Their going to pay in the neighborhood of $15k in interest over the life of the loan. 

[AZHeather]

Wow...Why would anyone want to put themselves that upside down in a car, especially for that long.  OUCH!! 

[Anonymous]

I thought I was going overboard with my $380 payment 

I guess I'm more frugal than I thought!  Hooray, me!  Although, I won't judge.  He may have a salary 3x what mine is.  His car payment is approaching the amount of my mortgage!

But I don't care how much you make, buying a new car is pointless, IMO.  You can get a car that is 2 years old and still have 3 or 4 years under manufacturer's warranty, but save $10k or more.  For $700, I'd rather lease a nice Mercedes...  A Nissan Maxima?  Seriously?  Not saying they aren't nice cars, but $700/mo. for a Maxima over 6 years?

[Anonymous]

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@Anonymous wrote:

But I don't care how much you make, buying a new car is pointless, IMO.  You can get a car that is 2 years old and still have 3 or 4 years under manufacturer's warranty, but save $10k or more.  For $700, I'd rather lease a nice Mercedes...  A Nissan Maxima?  Seriously?  Not saying they aren't nice cars, but $700/mo. for a Maxima over 6 years?

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Oh I agree, if I had a $700 a month payment it would be a Mercedes or a Lexus (prefer the German).