Quote:
Originally Posted by dvrich
When it's paid off the vehicle is worth less than half what you paid for it. A 72 month loan won't get you a good interest rate either.
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And some wonder why this man wants to sit in the front of the class...
Longer term, more interest. THE ONLY reason to go 72 months is to give yourself a buffer for a lower payment WITH THE THOUGHT and ACTION of paying more each month. I.E. The woman and I have a 2013 Nissan Xterra 4x4 we just purchased. We took out only a 60 month loan because that got our payment in a comfortable $347.xx monthly payment.
We pay $425 a month regardless whittling down the payment from the front side on a monthly factor. As same payments are made, paying the extra on the principle of the loan not only eats away at the interest but makes the payment overall smaller considering the first two years of payments is nearly 70% interest in a loan.. I'm not about banking like that, its stupid.
On top of that, we're making two complete payments a year alone on the principle of the loan. That action alone would take a 60mo loan and allow you to pay it off in just a little over 3.5 years vs 5 yrs whittling away the backside of the loan obviously in chunks.
Leasing also has the advantage as I stated above to NOT pay anything for repairs for the term of a lease in either 2 or 3 year packages. Most times these dealers have small add on packages that allow for even your basic of maintenance to be dealt with.
As Dvrich pointed out the interest paid far out weighs the value left in the vehicle. sadly it NO longer pays to buy a new car UNLESS its as a certified preowned TBH.
A three lease year will have a better residual and if your buying the car at the end mileage wont even matter.
At the end of the lease, you can walk away, reinvest into another lease, or my favorite.. Shop your car on the used lots. I've found same cars going for $2500-5k more than what I owe 4-6 months out from my lease turn-ins. I sell it outright for $XXXX.XX, pay off the loan, MAKE MONEY on my lease turn in.
Bank doesnt care how it gets paid off or where the money even comes from and as long as the new owner doesnt mind waiting 15-30 days (depending on state) for the Certificate of title... Bonus !
YOU HAVE TO OUT THINK THESE BANKS because they're capitalizing on all the idiots at an exponential rate its disgusting...!
Besides, if you actually read ALL of the fine print in a contract, you would never sign it.. Bet ?!
I have some additional information worth sharing.. ill post it later should anyone be interested.