topic Re: What's the rate? in Auto Loans

What's the rate?

Booner72 — Sat, 19 May 2012 03:15:04 GMT

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.

Re: What's the rate?

Anonymous — Sat, 19 May 2012 14:51:34 GMT

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.

Re: What's the rate?

Anonymous — Sat, 19 May 2012 15:19:25 GMT

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.

Re: What's the rate?

Booner72 — Sun, 20 May 2012 02:57:10 GMT

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?

Re: What's the rate?

MarineVietVet — Sun, 20 May 2012 04:29:37 GMT

@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?

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

Re: What's the rate?

Booner72 — Sun, 20 May 2012 04:54:01 GMT

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

Re: What's the rate?

boomhower — Sun, 20 May 2012 17:55:54 GMT

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.

Re: What's the rate?

AZHeather — Tue, 22 May 2012 05:31:48 GMT

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

Re: What's the rate?

Anonymous — Tue, 22 May 2012 14:02:18 GMT

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?

Re: What's the rate?

Anonymous — Tue, 22 May 2012 20:07:32 GMT

@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?

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

Re: What's the rate?

Anonymous — Tue, 22 May 2012 22:15:32 GMT

@boomhower wrote:
Their going to pay in the neighborhood of $15k in interest over the life of the loan.

Could have bought another car over the life of that loan.

Re: What's the rate?

laz98 — Thu, 24 May 2012 16:20:48 GMT

How can I find out how much interest someone will pay over the life of their loan? I never understood how to figure these things out.

My gf's cousin just bought a Jetta. 6 years, 14%, $339/month. We're curious how screwed she is.

(Aside from the fact that she doesn't have the income to support a car purchase at all )

Re: What's the rate?

pizzadude — Fri, 25 May 2012 00:51:42 GMT

@laz98 wrote:
How can I find out how much interest someone will pay over the life of their loan? I never understood how to figure these things out.

My gf's cousin just bought a Jetta. 6 years, 14%, $339/month. We're curious how screwed she is.

(Aside from the fact that she doesn't have the income to support a car purchase at all )

@I use an excel spreadsheet that amortizes the loan......guessing a price of $16,500, with no downpayment this would yield payments of $339 @Anonymous% for 6 years.

Total paid ----> $ 24,479

Total interest ----> $7,979. Ouch

Total principal ----> $16,500

Re: What's the rate?

Anonymous — Fri, 25 May 2012 01:45:34 GMT

That does hurt Pizza! I got over 2x the loan and pay half the interest. Buying an auto is such a major purchase and the term is so long that if I cannot get single digit interest I walk. I realize that is not an option for everyone, but people need to weigh their options. The first new vehicle I bought post divorce was what I called basic transportation. Ten years later I was able to get something that had more bells and whistles at a much lower interest rate.

Still... I would rather buy a VW than a Kia!

Re: What's the rate?

laz98 — Fri, 25 May 2012 02:07:16 GMT

Thanks Pizza!!

@Anonymous wrote:
That does hurt Pizza! I got over 2x the loan and pay half the interest. Buying an auto is such a major purchase and the term is so long that if I cannot get single digit interest I walk. I realize that is not an option for everyone, but people need to weigh their options. The first new vehicle I bought post divorce was what I called basic transportation. Ten years later I was able to get something that had more bells and whistles at a much lower interest rate.

Still... I would rather buy a VW than a Kia!

I agree, people should weigh their options. But her cousin is not the brightest crayon in the box. She just kept saying, "I have bad credit", but wouldn't elaborate on it. I don't think she even knows if she has bad credit or not! She's a bit of a snob & saw that everyone around her was buying a car, so she had to jump on the bandwagon, too. She doesn't know to distinguish between "I want" & "I need". She's sad that she had to settle for a basic model!!! *facepalm*

Re: What's the rate?

Anonymous — Fri, 25 May 2012 02:21:14 GMT

I agree laz98. The basic transportation I bought was a general need. My old car was still running and having no problems, but the miles were getting higher and I drove 30 miles one way to work at night on rural roads. I was paranoid it would break down in the middle of nowhere. So I bought a new vehicle and got the extended warranty.

Now my purchase last year was a want. The winter was so bad that I was tired of spending it getting stuck in my driveway. I never missed work and if I did due to the weather there was a policy in place. Still the aggravation built up to the point that I was able to mentally justify the purchase after saying I wanted something newer, bigger and better for 7 years.

Re: What's the rate?

laz98 — Fri, 25 May 2012 02:24:08 GMT

The sad part is, the only reason she *might* need a new car, is because she never does maintenance on the one she had! so this one won't last long either.

Re: What's the rate?

Anonymous — Fri, 25 May 2012 07:47:21 GMT

Gosh dang I hate to hear this that's highway robbery and I'm not usualy one to rant but I really dislike car sales men and women. I know everyone has to make a living but come on you can't sit there with a straight face and say that the majority of them aren't snakes! Not all of them but throw a nickel in any direction and you will hit one!

Re: What's the rate?

Anonymous — Sat, 26 May 2012 06:24:07 GMT

I wouldn't say it is highway robbery, when you buy a vehicle from a major dealer the information and options are right in front of you. They want to make the sale and will push it through any way they can. You just have to watch the extras that they try to sell you if you do not need them. Insurance on the loan and extended warranties are their favorites to push through.

Now highway robbery are the buy here pay here places that do in house financing. I have known people that put thousands down and are paying like 27%, on a vehicle with 100k+ miles. Yet I guess even they deserve what they get. Instead of getting a lower end new or used car they wanted something fancy and paid for it... through the nose, ears and eyes!

Re: What's the rate?

Anonymous — Sun, 27 May 2012 04:41:04 GMT

Yes +1 with what psychoinhell is saying that's very true!

Good Point