if you are going to buy a breand new Honda Accord what would the payment beif the car cost $23,999.00, you put nothing down, make payments for four years, and get an interest rate of 6.5% ?
i don't get what it means to put nothing down and what's an interest rate? can someone please explain what to do?
2006-12-09 11:45:18 · 6 answers · asked by michelle w 1 in Cars & Transportation ➔ Buying & Selling
payment would be over $500.00 a month, probably closer to 600
2006-12-09 11:52:05 · answer #1 · answered by thomas r 4 · 1⤊ 0⤋
you are always better off to put money down. It will just lower your payment. are u looking to lease? hondas are always a good car to finance for sure, because you do not loose to much money on them. Intrest is what the bank makes off the loan. So if you are getting a 6.5 on a brand new car, and this is the first time you have financed a car, that is not to bad. But if you got approved with no money down, that is good. Best advice is when you buy a car, you should be able to make 2 payments a month, one to the car and one into savings, then at the end of the term, of the loan, you have money in the bank, to either keep it, or trade it in, and put a lot of money down, and start fresh again, or pay cash.
2006-12-09 19:51:28 · answer #2 · answered by bryan_w74 2 · 0⤊ 0⤋
i don't get what it means to put nothing down ???....
Means you sign the contract and you don't put any cash down.
And drive the car off the lot...
what's an interest rate??? ... The money you pay back to the bank or Loan company ((like Honda credit)) on TOP of the money you barrowed from them for the car...
Remember or Know..... That you have Taxes and title fee's on top of the cost of the car... I recommend to everyone to at least have the money to pay for Taxes and fee's as a downpayment...
Also Deal.... when you go in too buy a car, make the deal, don't just sign what ever they stick in front of you. Look at the price VS the car you've test drove... Offer 900 to 1100 less than what they say the price is... They will counter offer, but after you start to walk out... Stick to making the Deal...The less you have to pay the better....
Think about it,, Get the fully maxed out loaded car for the price of the DX basic model...
Happy Shopping....
2006-12-09 20:49:18 · answer #3 · answered by Spinner...428 6 · 0⤊ 0⤋
The money you put down is like good faith for he financing company and the more money you can put down, the lower the payments can be with a lower interest rate depending on your credit score. There are first time buyer programs they set up for people where you do not have to put money down... but your payments will be like 350 a month. Honda and GM have pretty good programs for that but if you are really desperate, you can go to Saturn, there are no price breaks for anyone. everyone pays the same for a car unless they put money down but because the do not negotiate, the actual price of the vehicle does not change. Where as at other dealerships give you room to negotiate, never take the first financing plan they give you, be ready to walk away if youneed to, they will usually get you back at give you what you want or something close to it.
2006-12-09 19:56:04 · answer #4 · answered by useless_knowledge 3 · 0⤊ 1⤋
$23,999 - cost of the car?
$0 - down payment
6.5% interest rate
4 years to pay
0% (no) down payment = $569.14
20% ($4799.80), down payment = $455.31
10% ($2399.90), down payment = $512.22
$1000.00 down payment = $545.42
That is the amount you are going to pay based on the auto payment calculator that I been using for some time. I don't think that is realistic because that is the cost of the car. Sales tax, license fee, documentation fee, registration fee should be included in the computation of the car. It is like buying a DVD at Walmart or Costco, when you pay it, you pay the sales tax.
If I use the computation of where I lived, 8.25% sales tax, this should be my estimate of the real cost of the car.
$23,999 - cost of the car
$1979.92 - sales tax (8.25%)
$500 - license & registration fee (estimate)
$50 - documentation fee (estimate)
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$26,528.92 - total cost for the car (out of the door)
$0 - down payment
6.5% interest rate
4 years to pay
0% (no) down payment = $629.13
20% ($5305.78), down payment = $503.31
10% ($2652.89), down payment = $566.22
$1000.00 down payment = $605.42
Based from the figures where I lived, I cannot afford it. If I put 20% down payment or more, I can afford it. They say you can afford to pay the car if the payment does not exceed 20% of your net salary (gross salary minus state tax, pension, and federal tax). For example I earn $2000 a month. Based from that I can only afford to pay $400 a month ($2000 x 20%).
If I really like the car, I will sacrifice to buy one. I don't pay the car I don't like. I want to drive the car I like, the options of the car that I like, and the reality of the payment that I can afford. I like cars. Cars are meant to be driven, not to be display.
2006-12-10 11:06:38 · answer #5 · answered by glen 4 · 0⤊ 0⤋
thats 23,999 +0 down +0 tax x 6.5% for 4 years=569.14 for 48 months. if this is a school project, tell your teacher he forgot to factor in the sales tax , the dealer documentary fee and the license and registration fee.
2006-12-09 20:07:55 · answer #6 · answered by gr 5 · 0⤊ 0⤋