Interest rates HELP

[crew_dawg16]

Ok, I found an '01 cobra near my house and after much haggling, got them to come down from the original price of $20,495 to $19,700. I was shown the dealer inventory history on the car, and the dealer purchased it for $19,600. I know they probably gave somebody this much so they would trade it in and buy a new vette. (It is a chevy dealer) Anyways, the dealer got me financing at 11.9% for 60 months. My payments would be around 350 a month he said, problem is when I do the math it comes out to around 300 a month. Heres the math:

I have $5,000 to put down, so $19,700 plus TTL minus the
$5,000 comes out to $16,187 that I have to finance. I multiply that by.119 and get $1,926. Add those two = $18,113 , divide by 60 and I get $301.88 ????

Am I correct in this math?
Thanks for any help

 

[pvteye]

There are tons of loan calculators on the net,
http://autos.msn.com/finance_insurance/finance.aspx?src=LeftNav
this one says your dealer is spot on.

at 11.9%

Payment: $359.25

Total Cost: $26,555

The real problem is the Interest Rate.... that is where the dealer is making the money. Shop around, locally or on the net for a better rate... should only be in the 6 to 8% range with a decent credit history.

A wise man once told me, Buy your Car from a dealer, buy your money from a Bank..... there is a lot of truth to that.

Btw at 6%
Payment: $312.94

Total Cost: $23,776
at 8 %

Payment: $328.21

Total Cost: $24,693

Shopping for a better rate should save you 2 to 3 k of mod money over the 5 years..

Rex

 

[MystiChrome Coupe]

Check sites like bestrate.com or bankrate.com I forget which one it is, but it shows a example of the best rates in your area.

11.9% sounds way high.

 

[crew_dawg16]

Thanks for the help, guys. Yeah, I know 11.9 is way high, I am going to a bank on tuesday to see if I can do any better. Supposedly, it took a "favor" from the manager's friend to get me that rate.

I will see if I can find anything better.

 

[COBRA90GT]

Definately check out other banks, credit unions, and lending alternatives for a better interest rate. 11.9% is just way too high! However, if your FICO score is low, you're gonna get own3d no matter where you apply for a loan...

G'luck...

 

[crew_dawg16]

Thanks for the help you guys, I just got approved from e-loan.com for $20,312 at 7.80%. Much better rate I think. Anyways, that puts my payments on the Cobra at $325 a month, still not sure if I should do that, because I can get myself into a 2003 GT for $287 a month, plus I have a warranty and 15K less miles. What do you think??

 

[2001Saleen181]

E-loan is great, I'm glad you were able to get a better rate.

If you go with the Cobra, get the extended warranty for another 1000.00.

I did, and it paid for a new motor. But the cobra motor should be much stronger than mine.

 

[cold96snake]

Thanks for the help you guys, I just got approved from e-loan.com for $20,312 at 7.80%. Much better rate I think. Anyways, that puts my payments on the Cobra at $325 a month, still not sure if I should do that, because I can get myself into a 2003 GT for $287 a month, plus I have a warranty and 15K less miles. What do you think??

The cobra should hold it's value better but...