Question about car payments?

Question

Hi I am going car shopping on Tuesday and found a car I like....

If the car is $8,999 and I put $500 down, can someone give me an estimate of how much my payments would be?

Another question..

I'm not trading my car. I'll sell it on the lawn, but if I sell it for.. let's say $1500 and then later on, add that as a big car payment, could that possibly bring my car payment down at all?

This is my first time buying, so I'm not sure how it works.

Thanks

Answer 1

What's your interest rate, term of loan (how many months) and what is the sales tax in your area?

Paying more than your monthly payment does not change the amount of the following monthly payment but it does effectively shorten the term of the loan - you'll pay it off sooner.  That can save you quite a bit on interest.

Answer 2

I can't say what your payments will be, because it will be based on how many years you are going to finance it and what the percentage rate of that finance will be. Of course your rate will be determine by your credit score.  As for the second part of your question, the answer is no.  Only re-financing will bring your payments down after you have already entered a contract.  If you make a bigger payment it will be used to bring the balance of your car loan down, it will not lower your monthly payments at all.  So, it would be in your best interest to sell your car (maybe on the same day you go to dealer) and use that as a downpayment.  The bigger the downpayment the better! Hope this helps you out and good luck!

Answer 3

The car payments you make depends on the interest rates.

Shop around for the lowest interest rates.  They may vary from bank to bank.   Dealerships always charge more for interest.

I suggest you sell the other car first before purchasing any car.  It's alway better to put down as much money as you can for the down payment.   If you put $500.00 down the car payment remains the same even if you use the other $1,500.00 later.   The $1,500.00 will be used as a couple of car payments, depending on how much the original car payment is.

You've got the right idea about selling the other car on your own.  You'll get much less if you traded the car in.

So, the interest rates will determine what your car payments will be and of course how much you use for a down payment.

Answer 4

Your car payment will be based on your interest rate- a lower rate equals a lower payment.

If you pay the $1500 from selling your current car as an extra payment, it will not lower your monthly payment, but will take it off of your principal which means you car will be paid off faster as it will take the last few payments off. It also means once it's paid off you will have paid less interest than what was in your original contract.

The best thing to do would be to sell your current car FIRST, take the $1500 and put it down with the $500 that you already have. You would then only finance $6,999 plus tax, title, and license so you would have lower monthly payments AND pay less total interest.

Answer 5

$9.000.00 Dollars for the car you give $500.00 down, should bring the cost down right? Wrong! You are going to have taxes upon taxes upon fees and possibly more fees. that can bring the $9.000.00 car to over $12.000.00, this would incur due to shipping cost, you might not see the fine print, (bring a magnafying glass to see those contracts),

There are many different costs that might not be in the innicial cost of the car/truck, but they all seem to come out when the you are sitting in the finance office and you have those feelings of driving off in your new car racing within you. You are in a uphoric high that happens to most of us, then you fall when you see that end price and have to make yourself sign that dredded contract, but you do it anyway because you  have already convinced yourself of how great life is going to be driving instead of walking or dealing with the old car.

Sorry to burst your bubble, but you need to know that anytime you put less then 1/10th of a down payment you are asking any sales person to kick you in the butt without a kiss....

The bigger the down the better you can negotiate the price of the car, you would be better to offer less for the car say by 1/3 of the asking price, then you can sell your car for what you can out of it and have $2.000.00 in hand and be able to negotiate with something then your promise to make that monthly payment.

Get some advice from someone that has some experience buying a car/truck from a dealer, it is a game, if you don't know how to play (like in any sport!) you will find yourself hurt and unsure of what to do. What are you to do if the payments become too much for you to handle and you can't make the payment? are you prepared to loose all of what you put down and the payments you have already made? Do you have a nest egg to fall back on? You need to think twice and act with accuracy.

Hope this was helpful....  = )

Answer 6

You can work out your payments and loan costs on an online calculator such as this one:

http://www.autoloancalculatoronline.com

Once you set up your loan, your monthly payment amount is set for the life of the loan. If you make some large payments towards the loan principle anytime during the loan, it won't lower your regular payments, but it will shorten the loan.

Answer 7

Sell your old car first, then use the $1500. as a down payment on the new one.  A 24 month loan of about $7200. would be about $330. per month

Answer 8

Ideally, you would want to put that money down up front for a lower payment. Depending on your interest rate and length of loan you would likely be paying off interest with your car sale money. There is a mathematical formula for eliminating some interest on loans when paying them off but that is for paying them off.

Answer 9

Go to autotrader.com and find loan calculators at some of the site there.

fill in the numbers.

Interest is higher on used cars so payments maybe the same for a new one.  check first.

If you make a principal payment it will shorten your loan time but not the payments amount.  That would require refinancing and an added interest cost.

Answer 10

Can't give you an estimate on the amount of payments without the number of months or years that you intend to finance it for, the year of the car, as well as the APR for the loan.

As far as selling the car yourself - if you pay the 1500 after you make the loan, it will not decrease the dollar amount of your payments unless you refinance and give the 1500 at the time of refinance. Some places won't let you do that, so you'd better ask. But paying 1500 when your note is for 300 will do one thing for you - it will decrease the amount of interest significantly you'll have to pay overall. This will save you money as far as the amount that you'll have to pay total. But your payment amount will stay the same.

Answer 11

you wont ever know how much your payments are depending on how you get the loan if you go to the back and at that price your looking at right at 195 a month around that estimate mine is 147 a month and its a 07 car if you put 1500 it will not lower your payment but you will not have to pay as much in the long run with that much money being transferred over all at once and by the way what car are you getting and make sure its the right price if not go to www.kellybluebook.com

Answer 12

Go to the bank or credit union and check the rates of car loans first.  You can get pre-approved for a loan usually at a better rate than the dealership.  You can do this online most of the time.

Let them know you plan to make an addition lump sum payment when your old car sells and that you do NOT want any pre-payment penalties.

Don't go to the dealership and pay the price on the window.  Offer less by at least $1000.

Don't  tell them you need a payment of less than $300 a month, or they will get you a 5 year loan at the highest interest rate they can to fit $300 dollar a month.

Your buying a loan, not a car.  Research the loan then go buy the car!