Going to be buying a new car from the dealership?
By Cars & Motorcycles on May 02, 2009 with Comments 3
xist2spire asked: I have some questions. When i go to buy a car, i will of course make a down payment. But what i would like to know is, after i pay it off with monthly payments, do i still have to pay monthly payments, or do the payments stop? Like if i buy a 20,000 car and payed 5,000 up front and kept paying monthly until i payed the rest of the 15,000, would i monthly payments stop? I understand id still have to pay monthly for insurance.
also, is there anyway i can figure out my monthly payments on a car i might be buying?
Filed Under: Buying New Car
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Figure it out in your head as to what you can afford. Especially with your downpayment, i’m sure the car dealership will work with you. I was able to get my ’06 Mazda at employee price (see if your dealership will offer this…if not, pretend to walk out…if they don’t chase after you, then call them up the next day and see if they are still interested in offering you employee pricing). Plus if you buy this weekend I bet a lot of the dealerships will be having sales, but make sure you read all the fine lines when you sign your contract. Also, DO NOT LEASE. I’m leasing mine right now, and I already regret it. I can’t wait until my lease is up and I can actually go out and buy a car. The Lease payments will probably be less than a regular payment, but don’t do it because technically the dealership still owns the car. Good luck and enjoy the test driving!!!
Once you have paid all of the monthly payments, you own the car outright, and no longer need to make a car payment. However, it is not quite as simple as you portrayed. If you buy a $20,000 car, you will pay $20,000 plus tax, tags and licensing fees. The dealership will also try to sell you add-on products such as an extended warranty. So your $20,000 car becomes say $22,000 after all this. You put down $5,000 so you will be financing $17,000. In addition to paying back the $17,000, you will also need to pay back interest on the $17,000. So financing the vehicle will cost you even more. Depending on how your credit is, you could end up paying a lot in finance charges. Your $20,000 vehicle could, over the course of payments, end up costing $27,000 or more.
To estimate your payments, do a Google search for payment calculators. You type in the price of the car you want to buy, rebates, trade-ins, downpayment, and interest rate, and it will estimate your payment for you. However, you can only guess at the interest rate.
The best thing to do is to have an actual price in mind that you can afford rather than a monthly payment. If you want to buy a $20,000 car, tell the salesman that and stick to it. If you say that you can afford to pay $400 a month(but you’re thinking a maximum of 5 years of payments), you may end up in a car paying $415 a month for 6 years if you’re not careful.
don’t buy its better a lease
u can get new car every year and its gona work for the same.
and u had an option of purchase.
on this time it not good moment to buy a car
we are on war and all the time the cost will decrease
but if u buy you will pay more one monthly payments