Quote:
Originally Posted by investingdad
It's a matter of being out a few grand all at once right now, or 20 grand over the lifetime of the loan.
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Not quite. If he sells the car and buys something cheaper at the end of the loan period he'll have a used-up beater rather than a still perfectly-good Si that he's owned since new and as such been able to mantain properly. It will still likely be worth a substantial amount, and will incurr no repair costs over that time due to the extended warranty. And he'll have been able to enjoy the style, performance, safety, and reliability of the Si all that time. There's no way to drive for free, and a new honda is about as cost-effective a decision as one can make. If you want the payments to be lower, you just should have saved up a more substantial down payment before pulling the trigger.
I ordered my Si and waited 3 months for it to arrive so I could save for a larger down payment in the meantime. I put 6K down, and my payments are $465/month, except my loan term is 4 years rather than 5 and I only owe $16,800 at this point--6 months after buying it. I'm already to the point that I could sell it if I wanted to, but doing so would be foolish.