New Car. 2013 Dart

[Joe1]

Good luck with the car. I hope you enjoy it. The color looks sharp and the car will serve you well if properly maintained.

Assuming the OP financed 22000 for 72 months, the interest rate would be about 9.5%. A bit on the high side, but commensurate with the inherent risk of providing a loan to a youngster who may not have a credit history yet.

Here is the formula I did in Excel to get an approximate interest rate:

=PMT(0.095/12,72,22000) which equals 402.04 payment. I fiddled with the interest rate input until the payment equaled about 400 bucks.

There were too many variables involved to derive an accurate interest rate as I do not know the purchase price or if a trade in was involved or if an extended warranty or window etching was part of the equation.22k was a guesstimate of the amount being financed.

 

[GumbyJarvis]

It will be 404$ a month, 45$ of that is Gap Insurance/Extending warranty from 32k to 100k, the base price per month Ill be paying on the car is in fact 325$, 23,400$ the 75$ as I said added on to that was for Gap insurance, extended dupont warranty, extended everything else.

45$ * 72 months is 3240$, extending alot of warranties on many things, some things are being doubled on how long theyre covered.

 

[GumbyJarvis]

Oh and this deal was done at 7pm, banks were already closed on sat by that time, this is the offer I was given.

going in tomorrow morning to potentially get it lower.
Finance Manager is working on it, he stated "it wont get higher, Im going to push for lower"

As a many year experienced finance manager, he knows what to do to get the right things right.

he said he will push for 300-350/month

If he gets it to 300/mo, Id be ecstatic, if he cant, 400$ a month with the extensions etc, will be fine.

Starting like me, youre going to spend money to build credit, remember that..
It cost money to get respect in the financial world.

 

[Pop_Rivit]

Thank you for your service.

While I'm sure it's a nice car, it's clear you couldn't afford it. But as long as you're happy being tethered to payments, and helping put your bankers kids through college, then you have exactly what you deserve.

It's just a shame that your "mum" didn't teach you a little financial discipline, and how to live within your means.

Originally Posted By: bigjl

If the OP is happy and can afford the payments then why try to belittle the deal that he Nd his mum brokered.



Because it's financial suicide. People being deeply in debt is one of the things that put the country into a recession in 2008-at his age he would have been better served by saving his money.

Remember, others are reading this and the advice (even after the fact) may help someone else from making the same poor financial decisions if a few of us point out those financial mistakes. Just ask a few of the other younger posters how happy they are being chained to payments for 4, 5 or 6 years (when a few of us advised them against it).

 

[refaller]

OK, let's all calm down. I am sure this is not financial suicide. However, I would absolutely remove the extended warranties and see if you can get rid of gap insurance (might need a bigger down payment for that). Gap insurance helps no one but the insurance companies (that are often owned by the banks) and the warranties are almost never worth it. Since you have not signed final paper work, you should be able to do that. Saves you interest that you are paying on a warranty that in effect increases the warranties cost. Without the cost of the warranties, the gap insurance may become unneeded as well. No matter what, if you are happy, be happy regardless of what others say.

ref

 

[Tdbo]

Popoff:

I have to congratulate you. You truly have a knack. You have a skill for taking sound, solid, financial advice and making it sound seedy, smarmy, sarcastic, pompous and condescending. BTW, it is considered bad form to be calling out anyone's "Mum."

To the OP:

I (and many others) sincerely thank you for your service to this nation. Enjoy the new ride in good health and have a happy holiday. Totally agree with Bretfraz and Refaller in regard to their advice. I would suggest checking with your insurance agent and explore purchasing GAP insurance through them if needed or required. You probably can do so more economically plus not pay interest on the GAP policy premium. I would also waive the extended warranty and insure yourself by creating a savings plan, that will serve you instead of the dealer through USAA, PenFed, or NFCU as others here have recommended.

Best of luck.

 

[gfh77665]

Originally Posted By: GumbyJarvis

Starting like me, youre going to spend money to build credit, remember that..
It cost money to get respect in the financial world.


The way to build credit is to have credit cards, and use them, and pay them off each and every month in full. Do that and your FICO score will exceed 800.

Living debt free is an incredible blessing. I keep all the interest instead of giving it away to bankers.

 

[surfstar]

First off, I also thank you for service.

BUT, I believe everyone is looking through rose-colored camo glasses at this thread (except for the few brave enough to speak up). Because you are a service member, everyone is saying congrats, enjoy, etc. If it was chevyboy or Nick R, there'd be 5 pages of financial advice from EVERYONE.
Get a credit card - use it - pay off the full balance monthly. Build your credit. Just because you have disposable income due to zero living expenses - don't tie yourself up for 72 months of payments. $30k is a lot (doesn't include insurance, gas, maintenance, ...) of $$ just to provide transportation for a young guy.
If you do get it, though, enjoy it and take care of it.

 

[dja4260]

Nice car!

Thank you for your service!


I would contact a few lenders and get some rates as I feel they are really sticking it to you. $400+ @ 72 months is ALOT.

I pay $225 @ 60 months w/ 2.4% APR. Young college graduate w/ great credit.

 

[VicVinegar]

+1 on getting in touch with USAA or Pentagon Federal CU to refinance. They may look more favorably on a young active duty guy than a traditional bank. I'd also inquire about insurance through USAA.

Congrats on the car and finishing basic training.

 

[Mr Nice]

I think people get on Nick R's case because he gets a new car every 2 years and the payments are eating him alive.

I forgot how much NickR was paying for his Mazda.

 

[Stewart Fan]

JFC...

This website is going right down the [censored]. A kid tries to post about a new car and the normal band of pompous windbags show up to tell him how stupid he is.

The only clown missing is JHZR2. Once he shows up and pops off the douchbag circle-jerk will be complete.

 

[gfh77665]

Originally Posted By: Stewart Fan
JFC...

This website is going right down the [censored]. A kid tries to post about a new car and the normal band of pompous windbags show up to tell him how stupid he is.

The only clown missing is JHZR2. Once he shows up and pops off the douchbag circle-jerk will be complete.



1) The "kid" is a United States soldier. He can handle discussions.

2) The "kid" himself opened up the conversation regarding financing. Is it somehow off limits?

3) The "pompous windbags" such as my self offered gentle advice and commentary. He and everyone else is free to either heed it as food for thought or disregard outright. I have no problem either way.

4) You want to be taken serious yet you call others "Douchbags in a circle jerk"? I hate for people to be banned, but you, Stewart Fan, deserve it in spades.

 

[Vikas]

when one starts denigrating moderators, the time has come to take a second look at oneself.

 

[SteveSRT8]

Moderators anywhere are not above criticism.

 

[gfh77665]

No one has "denigrated any moderators" duh. The post was directed solely at SF.

 

[JHZR2]

Nobody is above criticism, but all should be allowed to have their say. Debt for depreciating assets is just plain stupid, and for those of us who try to provide smart guidance, based upon firsthand successes to be belittled is as horrible as any offense that someone might have for calling their financial choices out for the bad ideas that they are.

Thanks to the OP for his service. Unfortunately there are a lot of Military that are in bad financial situations. And if the OP is going to be mobilized, the car will likely sit, depreciating and racking up payments without use.

72 months is a long time. Bravo to the OP to recognize the need to pay it off sooner. Just wish it wasnt more than 36 months, and there was a solid (>50%) down payment on it...

 

[Propflux01]

Gumby, If you have not signed the papers, review what your paying. IMHO, those extended warranties are total [censored] Junk. They will only put your hard earned money in someone else's hands. you could save the same amount of $$ up yourself, put it in an account that is only accessible if you get "Mum's" approval, and by the time your warranty runs out, you'll have more than enough for any problem the car may present. Plus you'll knock a good year off those payments. I see where you say your going through BT. While I admire your forethought on your future plans, try to remember, they are plans and nothing more. Reality will always try to take a bite from it. Do you already know your first duty station (Since you stated your gonna drive there)? I didn't know mine till I was almost through technical school!
either way, I hope you take the advice of those that have posted here trying to look out for you. Good looking car, I am sure you will enjoy it.Congratst and good luck!

 

[volk06]

Originally Posted By: Stewart Fan
JFC...

This website is going right down the [censored]. A kid tries to post about a new car and the normal band of pompous windbags show up to tell him how stupid he is.

The only clown missing is JHZR2. Once he shows up and pops off the douchbag circle-jerk will be complete.

 

[refaller]

I got mad respect for someone who starts with JFC and then talks about circle jerks. Stay Classy BTIOG.

ref