car payments. why so high?

Question

why cant they pay low monthly payments and still pay the same price tag i think it makes no sense. tell me what u think

Answer 1

Because they don't want you to be paying off the car for 10 years. That leaves a huge possibility for something in the stock market or the economy to go extremely wrong. If you make a good down payment, however, your payments can get down relatively low, depends on how much the car is and how big the payment is, also having good credit can help get those pesky interest rates down.

Answer 2

I'm not clear what you're trying to say or ask. There are three components to how large a monthly payment will be:
1) Principal (the amount being borrowed)
2) Interest rate (the higher the rate, the more you'll pay)
3) Length of the loan

If you want a lower monthly payment but still want to "pay the same price tag" (i.e. borrow the same amount), then you have to either get a lower interest rate, or extend the length of the loan. What about this makes no sense? It makes perfect sense.

Answer 3

You're buying a car, not a house. And a car will depreciate, not grow equity like a house. Tell me, would you loan me twenty thousand dollars at 0% interest and let me pay you back a hundred bucks a month? It'd take you almost seventeen years to get your money back. But if you'll do it, let me know.

Answer 4

Because it costs money to use someone else's money to buy a car. This is called "interest". Someone with excellent credit is going to pay less interest than someone who doesn't have excellent credit. Sorry, but that's how it works. I hope this helps, because I'm not really sure what you were trying to ask.

Answer 5

Are you leasing or buying? Leasing usually has a lower monthly payment and no money down.

Answer 6

If it makes no sense to you, you shouldn't be buying a car.

Answer 7

longer term, the more chance your car wont be worth crap by the time you pay it off.