Downpayment or not

Anonymous · ‎03-10-2016

Anonymous · ‎03-10-2016

Added pictures so it is more organized and can be better understand. Trying to see were do you lose less money in the event the car is totaled. At the end of the loan you are still going to lose the same amount, but you may be saving a few buck in prior years if something happens. Please let me know if more clarification is needed.

Anonymous · ‎03-10-2016

what troubles me is that according to what I did, is safer to hold on to the downpayment, but every website tells you the best thing is to put 20% down

Anonymous · ‎03-10-2016

When deciding to put a down payment down or not, there is more that you need to think about, not just what is the car worth in 2, 3, 4, 5 years and so on.

- What are your plans for this car?

- How many miles per year do you drive?

- How many years do yo uplan on keeping this car, best case and worst case senario?

This is one subject that I feel I have down. Over the past 10 years I have purchased now 9 cars. Of these 9 cars some I have put a down payment on and some I have not. Only on 1 of these cars did I have to roll over negative equity to the next. The only reason I even had to do that is 3 months after I purchased a Porsche, I found out that my girlfriend at the time was pregnant, and the backseats on those cars suck, so I traded it in.

The point is you have to look at the complete picture not just the value after each year financed.

Anonymous · ‎03-10-2016

@Anonymous wrote:
When deciding to put a down payment down or not, there is more that you need to think about, not just what is the car worth in 2, 3, 4, 5 years and so on.
- What are your plans for this car?
- How many miles per year do you drive?
- How many years do yo uplan on keeping this car, best case and worst case senario?

This is one subject that I feel I have down. Over the past 10 years I have purchased now 9 cars. Of these 9 cars some I have put a down payment on and some I have not. Only on 1 of these cars did I have to roll over negative equity to the next. The only reason I even had to do that is 3 months after I purchased a Porsche, I found out that my girlfriend at the time was pregnant, and the backseats on those cars suck, so I traded it in.

The point is you have to look at the complete picture not just the value after each year financed.

- I'm burning it to the ground. I'm keeping it for as long as it can run. 10,15, 20years

- The average 15,000

Anonymous · ‎03-10-2016

If you are planning on keeping the car for longer than the car would be financed for, then to me putting the money down doesn't really make too much sence unless the monthly payment amount without the down payment stresses your finances. When it comes to the point you made on if the car gets totaled, well then you might want to look at gap insurance on the car. That can happen with or without the down payment.

Anonymous · ‎03-10-2016

@Anonymous wrote:
If you are planning on keeping the car for longer than the car would be financed for, then to me putting the money down doesn't really make too much sence

can you elaborate? why not?

Anonymous · ‎03-10-2016

Strickly from the value down the road aspect, the car would be paid off by the time you decided to sell it or trade it in. If lets say, you only wanted to keep the car for 3 years, then the depreciated value of the car in 3 years could show that a down payment would be perferred so there wouldn't be any negative equity at time of selling or trade in.

There are other aspects that still need to be looked at as well.

- What would your payment be without a down payment?

- What would your payment be with a down payment?

- Between each of the forementioned senarios, would yo be ok with either payment or do yo need to be around a specific monthly payment?

- Would putting the down payment help you receive a better apr?

Anonymous · ‎03-10-2016

@Anonymous wrote:
Strickly from the value down the road aspect, the car would be paid off by the time you decided to sell it or trade it in. If lets say, you only wanted to keep the car for 3 years, then the depreciated value of the car in 3 years could show that a down payment would be perferred so there wouldn't be any negative equity at time of selling or trade in.

There are other aspects that still need to be looked at as well.
- What would your payment be without a down payment?
- What would your payment be with a down payment?
- Between each of the forementioned senarios, would yo be ok with either payment or do yo need to be around a specific monthly payment?
- Would putting the down payment help you receive a better apr?

Is going to be $436 with down or $575 w/o down payment (want to stay at $500max). My concern is that if I put a down payment and the car is totaled I will lose it. Thats what is shown by the calculations, but If instead I take does 10k and pay the difference only in m/payments the GAP will kick in saving me a couple thausands.

Anonymous · ‎03-10-2016

@Anonymous wrote:
@Anonymous wrote:
Strickly from the value down the road aspect, the car would be paid off by the time you decided to sell it or trade it in. If lets say, you only wanted to keep the car for 3 years, then the depreciated value of the car in 3 years could show that a down payment would be perferred so there wouldn't be any negative equity at time of selling or trade in.

There are other aspects that still need to be looked at as well.
- What would your payment be without a down payment?
- What would your payment be with a down payment?
- Between each of the forementioned senarios, would yo be ok with either payment or do yo need to be around a specific monthly payment?
- Would putting the down payment help you receive a better apr?

Is going to be $436 with down or $575 w/o down payment. My concern is that if I put a down payment and the car is totaled I will lose it. Thats what is shown by the calculations, but If instead I take does 10k and pay the difference only in m/payments the GAP will kick in saving me a couple thausands.

That is correct. With the monthly payment there is a $139 difference. Does that bother you at all? Can you handle the higher payment without worrying about it? If you can, due to you wanting to keep the car for a long period of time, I say no down payment.