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Discussion Starter #1
I've had my Si for about 5 months now.
When I financed this I did it for 6 years with $412/mo.
only put $2k down. Parents co signed giving me 8% interest rate.
So basically if i do the 6 years I'll be paying a **** load of interest, lol.

Well I'm 19 and just started my 2nd job for extra cash.
I kind of have a plan to start doing $1k/mo. payments to get this thing
paid off in less than 2 years.
So do you think that's the best/smartest plan?
Or save all my money for a down payment on a house?
Or something else?

Thanks,
Curtis
 

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I've had my Si for about 5 months now.
When I financed this I did it for 6 years with $412/mo.
only put $2k down. Parents co signed giving me 8% interest rate.
So basically if i do the 6 years I'll be paying a **** load of interest, lol.

Well I'm 19 and just started my 2nd job for extra cash.
I kind of have a plan to start doing $1k/mo. payments to get this thing
paid off in less than 2 years.
So do you think that's the best/smartest plan?
Or save all my money for a down payment on a house?
Or something else?

Thanks,
Curtis

you didn't get that great of a deal at all... the interest rate kinda blows and those payments are pretty steep. I'd try to pay it off asap. Remember, not all of your $412/mo is going toward the principle...
 

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you didn't get that great of a deal at all... the interest rate kinda blows and those payments are pretty steep. I'd try to pay it off asap. Remember, not all of your $412/mo is going toward the principle...

indeed.... best rule of thumb, pay off loans/credit debt as fast as you can financially afford to.

The only time I'd be hesitant to pay off a loan as quickly, is when it's a student loan, where the repay period is over 10 years.
 

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Your story sounds EXACTLY like my first car purchase. I was 20, had a decent job and lived at home w/ my parents. I bought a brand new 99 Si and had to finance $15,000.00. I made exactly $1000 payments and paid VERY nearly 0 finance charges. I may have paid like $200-$300 in interest. Remember as your principal goes down, you have to pay less and less interest. If you have the financial ability, pay it off as soon as possible. If you make at least a year to year and half in steady payments, it will also help your overall credit score for your future.

Good luck.
 

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same exact boat i was in. almost word for word. wait a year re finance the car back into only ur name since u now have credit. ur payments will cut down and so will ur interest rate.
 

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if u can do it man then yes def. however i would make ur regular payments that u have to make now. 412 a month for a year then re finance it and then u can pay double a month. if u do it now ur money is basically going straight to interest rates and when u re fiance u wont be further away from where u started.
 

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Discussion Starter #8
I thought if I did double payments the money after 412 (1000-412=588)
So 588 would be interest free right??
 

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no no.. after u re finance ur car ur payments will cut down aswell as ur interest rate. Wont be interest free though.
 

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Think about this. What if you could invest your $1000 a month in an aggressive fund. If you could get into a fund that is performing over 8% annually, which is doable, you would be better off than paying off your 8% loan quickly. As in your gains will be counteracting your debt. 8% paid on the loan vs. 10% gained on an investment = 2% gain.

I see people making this mistake with houses. Trying to payoff a 5.5% mortgage quickly, rather than investing at a much higher rate.

If your loan was at 15-20%, I would say definitely try to pay it off quickly.

Other than reducing your debt to income ratio, you would end up with a paid for Honda and no cash say in 24 months. Or investing your $1000 per month at 8% would equal $26,790.40; @ 10% 27,510.
 

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Discussion Starter #11
^i'm really lost....so your saying if I invested I would make like $2.7k at 8% and my car would be paid off?
 

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How much do you have total to spend per month? $1000.00 ? and your current payment is 412? how many months left on the loan.

Let me know and I'll do the math (ugg yes this requires math) :)
 

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When I financed this I did it for 6 years with $412/mo.
only put $2k down.
I think you mean you financed it for 60 months (5 years). 6 years at $412 + $2,000 down = $31,664! That is a loaded 350z!

Either way, if you're working harder now pay it off sooner... Unless if your parents want you out of the house saving for a down on a house should be out of your reach. Finish college then worry about the house.
 

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I think you mean you financed it for 60 months (5 years). 6 years at $412 + $2,000 down = $31,664! That is a loaded 350z!

Either way, if you're working harder now pay it off sooner... Unless if your parents want you out of the house saving for a down on a house should be out of your reach. Finish college then worry about the house.
ur wrong. im sure its for 6 years. from what i am getting. his co signer has bad credit. thats why he'll need to re finance to his name after he builds credit. and he cant go out and buy a loaded 350z because that would cost near 50k.
 

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Discussion Starter #15
^my parents have perfect credit, even the dealership knew that...
But yea it is for 6 years, but I only put 2k down...it's just math. 8% rate.
If they didn't co sign I would be on around 16% rate, then I would be in bad shape...
 

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ur wrong. im sure its for 6 years. from what i am getting. his co signer has bad credit. thats why he'll need to re finance to his name after he builds credit. and he cant go out and buy a loaded 350z because that would cost near 50k.
Are you just throwing out random numbers? How do you even compute 50k without an APR or Loan amount? The reason I ask is because I have never seen a car loan for 6 years before, I was under the impression that its either 36m or 60m.

Sale Price..........~$25,500<----- Quite high for a Civic (unless loaded)
Down....................$2,000
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Amt Fin.............~$23,500
Fin Rate...................0.08
Time (months).............72
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Montly pmt...............~412

Total Cost.............$31,664
 
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