72 month car loan for my dream car?

Question

I really really want a 2007 Mustang GT. I finally have halfway decent credit and am able to get the car with only $1500 down. However I need my payment as close to $400 as possible. I can get $465 a month for 72 months. $545 for 5 years. I am not sure what to do because 6 years sounds like a long time to pay for a car. Any relevant opinions are welcome.

Answer 1

Go for the shortest possible loan that you can afford. Sure, it's great to have a little extra money in your pocket each month, but you need to realize that you are paying interest on that money that you are keeping in your pocket each month.

Do you want to still be making the same payment on the car in 5 1/2 years are you were when it was brand new? Think of it this way, if you do the 6 year loan....you will be upside down on the car (you will owe more than it's worth) for the first three years or so. So, if you decide that you want a different car, you will need to pay someone to take it off your hands.

Also, consider when the warranties expire. Once they expire, you will need to be paying for repairs out of your pocket. The sooner you can get the car paid off after the warranties expire, the less chance that you will be having to make a car payment and a car repair payment in the same month.

Answer 2

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Answer 3

First it's not the payments it's what is the interest rate. If you have decent credit should be no higher than 6.5 and perhaps lower if you have access to a credit union. Are you going to keep this car for duration of loan because you going to be under water the entire loan duration, owing more than the car's worth. You'll feel good for awhile but down the road don't think car payments for 72 months make sense.

Answer 4

Pay more down. Better yet, put away those car payments for a couple of years and then go down and pay CASH for a new car. Listen to Dave Ramsey and you will become financially independent enough to own whatever you wish within a few years...I'm debt free with better than an 80K income. I refuse to do credit ever again...I save about 30% on my purchases because I don't pay those stupid INTEREST payments...

Answer 5

Go for a 36 month lease with a 15k mile a year alottment. That will get your payments were you want them, and then in 3 years you can get another car. I do however promise that if you purchase this vehicle you will have a ton of negative equity to deal with if you want another car in 3 years. HGood luck on yoru sear ch and maybe sacrifice because when your behind the wheel it is all worth it....

Answer 6

Maybe look for a used 2005 mustang - they look pretty much the same and the first owner has taken the first 20% depreciation hit. You can find these cars with really low miles for 18k to 20k on ebay motors.

Answer 7

a car like that isnt going to loss it value so a 6 year term isnt going to hurt, but with that said, if you have a hard time affording $545 then you probably cant afford $465 either. i hope you have factored in the cost of insurance because its going to be high

Answer 8

You have to either accept the 72 months or reconsider what you ACTUALLY can afford! Sounds like you're buying out of your budget allowance which will come back to bite you before all is said and done!

Answer 9

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Answer 10

Is this dealer financing? go to your local bank or credit union and get a better rate, by the way that seems like a lot of money to pay per month, how much is your insurance going to go up?