Originally Posted by
amusante
Just got my approved loan application. With 4K down and a 60 month term, it's about $600/month at the 8.9% interest rate they got me. Not sure I wanna do that. I did let him know I didn't realize the negotiation phase was over. I merely asked what I could bring with me to speed things along if it did go well.
you should not buy the car and take out a loan with a 9% interest rate.
Assuming you get it for $28,000 out the door, that means your principle owed is floating around $4,000 so in order to resale the car, you would have to get $24,000 on a trade in or sale private party just to get out of the deal break-even.
Currently, KBB tells you that the car with 66k miles on the clock, optioned as you call it is actually worth between $19-$21, so if you bought this car the way it stands, you are already underwater. Not necessarily a bad thing, but something to understand, and made even worse by an interest rate that is borderline criminal.
all im saying is it's going to be an uphill battle to get out from being underwater on that loan with 9% interest ticking away vs the car's depcriation, which takes a big hit when your odometer crosses 85k for some reason, which is about two years of light driving from 66k.
i would walk from this deal for a lot of reason, i would run because of the 9% 5 year loan on a car made 6 years ago.
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