Too much of a down payment? Opinions?

fox racer · Sep 10, 2007

Well I've been tossing around the idea of financing the new 08 GT. I was looking for payments over the course of 60 months, with 10 down (thousand). Is this not a good idea? Is 10 too much? I might be able to get payments below $400 a month if I put 10 down and got a fully loaded GT (Just over $30,000) over the course of 5 years. I could probably afford $600 a month, but I'm assuming the insurance will definitely go UP, so I'd like to save the money to insure it (I pay $1600-1700 a year on a 1991 4Cyl Notch). I'd be able to get the 10Gs for the DP around March/April, so I'd have to do some saving first. Anyone with opinions criticisms?

grey5.0beast · Sep 10, 2007

go 03-04 cobra for that much!

fox racer · Sep 10, 2007

grey5.0beast said:
go 03-04 cobra for that much!

I should right? But remember that $1700/yr Insurance premium? When I called Geico a few months ago, asking about this car (actually, my dad did, and would put it under his name), guess what they told me? That $1700 would TRIPLE, at a minimum. so IF I were lucky to get a good rate I'd be paying over $5000/yr in insurance on that car. YIKES. But then an '02 Camaro SS SLP package would only cost me $3550/yr to insure, figure that one out? I didn't get a rate for the '08 GT yet, I'm hoping it will be reasonable though. I'm trying to make room for an extra $200 a month. Plus, I only have $10k cash, and thats AFTER I sell my car.

strtrcr50 · Sep 11, 2007

Purchasing a depreciating asset(new car) is a bad idea. If you are going to do it, with that much down you won't need gap insurance.

Hickfied · Sep 11, 2007

I'd get a 05 or a 06, but that is the cheapness in me.

2000xp8 · Sep 11, 2007

Marrying yourself to a car payment that long, sucks.
Get something used, and a 4 year loan. An 08 and an 05 are close enough that you can get a low mileage 05/06 and save 10 grand.
And now you'd have 10k down on a 22,000 (possibly 4k less) car, leaving you with only 12k to pay, probably like $250 a month, which you could make if your job was a paper route.

My explorer had a $500 a month payment, at first it was ok, then you realize that you are spending all this money on a car. And it's not like modding your existing car, if you are broke, you just don't buy anything, with a car payment, you HAVE to pay.

I'm anti NIB car, letting someone else take the initial beating, is the way to go.

Boss 351 · Sep 11, 2007

2000xp8 said:
Marrying yourself to a car payment that long, sucks.
Get something used, and a 4 year loan. An 08 and an 05 are close enough that you can get a low mileage 05/06 and save 10 grand.
And now you'd have 10k down on a 22,000 (possibly 4k less) car, leaving you with only 12k to pay, probably like $250 a month, which you could make if your job was a paper route.

My explorer had a $500 a month payment, at first it was ok, then you realize that you are spending all this money on a car. And it's not like modding your existing car, if you are broke, you just don't buy anything, with a car payment, you HAVE to pay.

I'm anti NIB car, letting someone else take the initial beating, is the way to go.

Great advice...

glowstang93 · Sep 11, 2007

Unless you just have to have a new one or maybe a special edition or something, buy used. Lots of 2 yr old cars out there with some factory warranty left on them. let someone else eat that depreciation.

SVT32VDOHC · Sep 11, 2007

I always put as much possible down to get lower payments and to avoid repaying $$$$$ in interest over 5 years. If you put less down, you can always double up on the payments to save money on the interest that way.

nvr2low · Sep 11, 2007

2000xp8 said:
Marrying yourself to a car payment that long, sucks.
Get something used, and a 4 year loan. An 08 and an 05 are close enough that you can get a low mileage 05/06 and save 10 grand.
And now you'd have 10k down on a 22,000 (possibly 4k less) car, leaving you with only 12k to pay, probably like $250 a month, which you could make if your job was a paper route.

My explorer had a $500 a month payment, at first it was ok, then you realize that you are spending all this money on a car. And it's not like modding your existing car, if you are broke, you just don't buy anything, with a car payment, you HAVE to pay.

I'm anti NIB car, letting someone else take the initial beating, is the way to go.

well said, buy an 05/06 and save the cash.

ninety15.0 · Sep 11, 2007

Exactly...if you are going to take out a 5 year loan...think of all the $ you are going to be spending in interest. The first year...a huge chunk of your payment is going to interest only. Put as much down as you can and would seriously consider looking for a cheaper 05/06....or an older cobra or mach1. You can find them with 20-30k miles on them for around 20k. if you put 10k down and took out a loan for 10-12k....you would be looking a small payments...or make the loan term even smaller. 3 years or so. That way you wont be loosing a couple thousand to interest. good luck man

90bronconate · Sep 11, 2007

my philosophy is that if you have to owe money on a car, you can't afford it. if you own a car outright, it is an asset (a depreciating asset, but still an asset). if you're making car payments, it becomes the biggest liability you'll ever have. nothing depreciates faster than a new car.

MrStang123 · Sep 11, 2007

You can get yourself a really nice low mileage 96-98 Cobra for less than 20k.

svtpower · Sep 11, 2007

yep

I wouldn't do it man.

I don't know your financial situation but if you are like most people a $400/month payment + gas + insurance + mod money is a heck of a lot, especially for 5 years.

When I had my Cobra, my payments were $300/month which doesn't sound bad but then when you add insurance, gas money and a new mod every few months or so for a few hundred bucks, it sucks.

The fox was a no brainer after that. Paying cash for a car and still having a few grand left over for mods is so cool.

I agree with this:

glowstang93 said:
Unless you just have to have a new one or maybe a special edition or something, buy used. Lots of 2 yr old cars out there with some factory warranty left on them. let someone else eat that depreciation.

Too much of a down payment? Opinions?

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