Alano

The finance is for 5.5 years. Any more then that and the payments will kill me. Now I have to decide if I'll be content with keeping this car for that long or if it'll get boring! Grr, I hate these decisions.

dbright007

That long on any car is stretching it. No offense, I have been there. Keep it at 4yrs max or you are spending too much.
And I mean spending more than you should afford.

tjbourgoyne

Don't do it. Do your homework and go used MT with low miles and save yourself a lot of money.

Rems31

The shorter the financing term, the better the rate and you pay less interest

reaper1

You're rigth the only problem is his payments will be higher, and maybe he can't afford that.

CTrx8

iTrader: (2)

i agree here. plus if you're that strapped and can't get lower than a 5.5 year deal, you might want to wait and get something else in the interim. you don't want to have to turn and sell it off right away and be updside down on your loan.

Rems31

Can you wait to put a bigger down payment on it?

Jedi54

iTrader: (7)

Alano, I am going to give you the same advice I've given MANY of my clients over the years (I'm a Bank VP)

- If you can't afford the car in LESS then 5 years, you shouldn't be buying it. Period, end of discussion.
When you amortize a loan over 5 years, the amount of total interest you pay, is simply too high to justify the purchase. Save up a little more or buy a used M/T and finance for less time. Trust me, it'll be worth it in the long run.

Alano

Well, I didnt plan on taking out a loan. I guess I'll just save up some more for a bigger downpayment. I was putting about 4-5 grand down. The car was originally 17.4lk So financing about 13k + tax and whatnot made it about 335$ for 60 months, 320ish for 66, and 305 for 72 months...We're going back to the dealer today, possibly work out a better deal with them. I agree having a car over 4 years is way too long. Thanks guys.

Alano

The thing is, it is a used MT, as for low miles...would you consider 35k low?

NoTears316

Financing a USED 8 for 5.5 years? No way. Get something you can afford.

nolanrob123

Hmmmm. WITH THE DOWN PAYMENT: 60 months total = 25,100. 66 months total = 26,120. 72 months total = 26,960. I would say that your interest is a little too high. At a minimum, you pay 7,700 in interest. Have you tried other finance companies? Was the dealer in YOUR favor or in it too much for themselves. Keep in mind they get paid off of your total interest in addition to the sale, so the more points they make off of you the more they get paid. Check with your local credit union as well.

reaper1

Shop around , see if you can find a better deal.
Walk out if you have to, you'll probally get a call with better offer.

Alano

Well thats another point. We went by an estimated credit score. Since ours is almost excellent, thats another point that should be considered, and payments should be lowered.

delhi

Don't forget insurance too. and maintenance as a used rx-8 will have minimal waranty left. I suggest holding off and save more money or purchase something that are more financially manageable.
I've seen far too many people driving expensive cars to the nearby BK for food or order water at restaurants.

diem

Woah, if you have a good credit score, 620 or above, there is no reason to finance a used RX8 for 5 years. Especially one with 35k miles. You will easily get yourself upside down.

Make sure you are getting your loan through a prime lender, which you should be with excellent credit.

Alano

Ok thanks guys. Well I'm headed back there in a couple hours. Ill let you guys know how it goes. Wish me luck! For an Rx8 priced at 17.4k, about 4k down payment, excellent credit, what should I be paying? I know with a 9.5k downpayment, which would have been my trade-in value of my car, it would be low to mid 200's for 3 years. But since my current car isnt payed off fully yet and payments are still being made, the full 9.5k cant go into the rx8.

Easy_E1

iTrader: (2)

Sounds to me if you have excellent credit you sould be able to get a loan with interest in the 5-6% range. If you have negative equity in your trade in that goes on top of the loan and increases the amount financed. I would ask them for the interest rate and work on that not the monthly payment.

Leesha

I saved a hugh down for my car and then was going to finance for 2yrs with 0%interest but instead I took an open loan for 0.9% 3yr. term and I have don't pay for 5 months.

I plan on paying it off in 2yrs but if anything were to happen I'd have extra payments made on it....

Try to save...then purchase...I was able to add $7000 in upgrades by saving.

Alano

So you guys are saying it would probably be better if I take out a loan, pay the dealer, and make payments to the bank, rather then make payments to the dealer? Or would that not make much of a difference. I wasn't taking out a loan in any of these scenarios.

CTrx8

iTrader: (2)

what do you mean you weren't planning on taking out a loan? if you're buying from the dealer that's what you're doing. you need to know the rate they are charging you that way you can compare to a bank or even your insurance company if they also do loans. whoever gives you the best rate is the one you go with and they pay the dealer and own it until you complete your payments. if you do it through the dealer, they are just financing through a bank of their choice and probably not at the best rate for you.

User24

iTrader: (1)

At one end of the spectrum, a long-term vehicle loan can be used to reduce risk and free up cash reserves. But on the other end, financing is a great vehicle (pun intended) by which the masses can experience a few nicer things in life, such as having a place to live. It enables the American Dream, and if that includes an RX8 so much the better. How much interest is too much interest is for you only to decide according to your situation, values, and amount of risk you will handle.

How high of an APR are you using? Let me break down the math on my own loan here:

Maths:

sales cost: $31,000
downpayment: $3000
loan: $28000
apr: 5.65%
term: 72 months
montly payment: 461
sales tax: 0

Approx cost after 72 months: $33,000. Seemingly (more on that later), the sales price has increased by $2000. Now, I would not pay $2000 above sticker for, say, a pack of chewing gum financed over 6 years. But this is where your personal values come into play.

In the loan above, I do not understand how the bank actually makes money. Midway through the lease term, inflation shatters the fixed APR. Assuming I did not make a single monthly payment for 3 years, the $28,000 I'm supposed to pay off is only worth $26,000--in effect, the total interest ($2000) has disappeared. From that point on, the loan becomes free and then begins to "make" me money. I'll have given them just $2000 over more than half a decade, when in that timeframe they will have needed to get $4000-$5000 out of me just to top inflation. As long as I don't get out of the vehicle and take the depreciation hit, as some say, "drive it like you stole it".

Lastly, do not focus solely on the monthly car payment. My first term, the rx8 managed to cost me $1000 monthly once gas, insurance, etc. was factored in. And do remember the cost of new wheels, like $1000 all up front. Other than that, it's up to you the risks, financial and accidental and unanticipated repair costs, that you will take to drive an RX8.

tjbourgoyne

Alano - the car is arlready long in the tooth. Mazda will have something new in about 3 years and you may be kicking yourself later. Wait, save up some more, and get the new and improved. Just my thoughts but I wish you the best whatever you decide, the 8 is a good car and will bring you much enjoyment.