When you take a 6 or 7 year car loan you risk getting into a NEGATIVE equity event down the road. It's more prudent to stick to a 5 year car loan to avoid this situation.
take a car notes value that you're comfortable paying to a bank and pay YOURSELF. that money can either go to repairs or to save for a nicer/recent model year car paid in full or at least 80% just think, pay 5 years, then the next 5 years you're paying yourself. after this 10 year hiccup, every 5 years you COULD afford a "new" car. my thing I made was a 40k every 5 years, just save up 600 ish dollars a month (sadly its 666.6667) 40k over 60 months. I just liked the 40k and 5 years but even 32k for a newish car every 5 years is good trade off. only thing is... 40k buy what types vehicles again? for me its compact suvs like the rogue, rav4, and so on. but for pick up trucks you gotta DO YOUR OWN RESEARCH. 32k can get decent sedans too. $533/month for 5 years. if you pay yourself and invest the money in CDs, HYSAs, or keep your investments at balanced stocks and probably conservative. im not a stock guru, but can only say LONG TERM over 10 years will stocks have an almost guaranteed up tick. for short term... umm coming from that blasted virus it can only improve ... but i cant guarante for how long. but yeah, just save it in a bank if you dont wanna risk any loss. you paying in cash means you at the very least wont have NEGATIVE INTEREST. (paying more money than the principal value.) a 32k vehicle once financed will cost ya 40k due to payments but only worth 10k once the payment period is finished. so you spent 40k for a 10k (or even less) for transportation. but if you save for it, the you spend 32k and at any time you trade it in, your depreciation WILL still happen but theres no outstanding balance... the pain hits yah cuz you dont have a shiny whip to flaunt around whilst saving.. BUT when you do pay, the vehicle is yours in totality. no late payments, no repo, no credit check, nothing just pure cash.
Just keep the car. Depreciation won’t matter. If u buy new assume the car will last till your kids need it. If it won’t last that long then that specific car ain’t it
Wow! Super valid point. Financed my last car in 2022. Would never purchase another vehicle using that method. Either used cash deal or I’m riding with what I have.
Why not go for the 7 year car loan and pay a little extra into it each month? Assuming the extra rolls over, which would result in paying it off early, then looking even better on your credit and with the dealership.
I saw a video earlier today that made super sense. If you have to get a car loan, you cannot afford the car. Understand folks have to get to work, but the video more or less laid out that one should use cash, save, cash save, and cash to elevate ones self to a moderately priced car....with NO car loan.
Here’s the thing I got screwed by a dealership both the truck for 55k and 22k instrest I paid a whole year of it and only went down to 47k I put 6k down I’m paying 700$ in intrest and 400$ for the car would it be better to trade it or refinance it ?
I got a Chrysler 300 touring L 2023 I’m trying to trade it in for RT and only got 10,000 miles on the Chrysler 300 my credit score is 760. I only had the car maybe eight months and I’m already 13 grand in a hole I want to trade it in I went to the dealership they told me I had to put $14,000 down so just to get a RT what should I do?
What you should do: stop changing your mind every fortnight like a child. Or buy used so it’s easier to change car constantly (that’s what I do = grown up child).
I had a 75 month loan and paid it off in 42 months. Sold it privately and took out another for 66 months. I'm hoping to pay it off in 2 yrs too. Never trade in your car if you can get it sold privately.
I got 6 year car loan and paid it in 3 years.
Just keep your auto until it no longer runs. Never trade it in that’s just ignorant
Facts
take a car notes value that you're comfortable paying to a bank and pay YOURSELF.
that money can either go to repairs or to save for a nicer/recent model year car paid in full or at least 80%
just think, pay 5 years, then the next 5 years you're paying yourself.
after this 10 year hiccup, every 5 years you COULD afford a "new" car.
my thing I made was a 40k every 5 years, just save up 600 ish dollars a month (sadly its 666.6667)
40k over 60 months. I just liked the 40k and 5 years but even 32k for a newish car every 5 years is good trade off. only thing is... 40k buy what types vehicles again?
for me its compact suvs like the rogue, rav4, and so on. but for pick up trucks you gotta DO YOUR OWN RESEARCH.
32k can get decent sedans too. $533/month for 5 years.
if you pay yourself and invest the money in CDs, HYSAs, or keep your investments at balanced stocks and probably conservative.
im not a stock guru, but can only say LONG TERM over 10 years will stocks have an almost guaranteed up tick. for short term... umm coming from that blasted virus it can only improve ... but i cant guarante for how long.
but yeah, just save it in a bank if you dont wanna risk any loss. you paying in cash means you at the very least wont have NEGATIVE INTEREST. (paying more money than the principal value.)
a 32k vehicle once financed will cost ya 40k due to payments but only worth 10k once the payment period is finished.
so you spent 40k for a 10k (or even less) for transportation.
but if you save for it, the you spend 32k and at any time you trade it in, your depreciation WILL still happen but theres no outstanding balance...
the pain hits yah cuz you dont have a shiny whip to flaunt around whilst saving.. BUT when you do pay, the vehicle is yours in totality. no late payments, no repo, no credit check, nothing just pure cash.
Get the longest term financing... pay car note biweekly... this will cut time and make interest less
Pay the same amount but split it into biweekly payments or make double payments per month?
@@mistrylyra5848double
@@mistrylyra5848double payments
Never finance a car. NEVER!
Just keep the car. Depreciation won’t matter. If u buy new assume the car will last till your kids need it. If it won’t last that long then that specific car ain’t it
Correct
That’s exactly what I do
Wow! Super valid point. Financed my last car in 2022. Would never purchase another vehicle using that method. Either used cash deal or I’m riding with what I have.
Why not go for the 7 year car loan and pay a little extra into it each month? Assuming the extra rolls over, which would result in paying it off early, then looking even better on your credit and with the dealership.
Thats what im doing i have six year loan but i did the math and i will finish paying in three years bevause i give more that asked
I saw a video earlier today that made super sense. If you have to get a car loan, you cannot afford the car. Understand folks have to get to work, but the video more or less laid out that one should use cash, save, cash save, and cash to elevate ones self to a moderately priced car....with NO car loan.
This is for people who don’t already have the cash
Here’s the thing I got screwed by a dealership both the truck for 55k and 22k instrest I paid a whole year of it and only went down to 47k I put 6k down I’m paying 700$ in intrest and 400$ for the car would it be better to trade it or refinance it ?
What’s your credit now? Annual income?
I got a Chrysler 300 touring L 2023 I’m trying to trade it in for RT and only got 10,000 miles on the Chrysler 300 my credit score is 760. I only had the car maybe eight months and I’m already 13 grand in a hole I want to trade it in I went to the dealership they told me I had to put $14,000 down so just to get a RT what should I do?
What you should do: stop changing your mind every fortnight like a child. Or buy used so it’s easier to change car constantly (that’s what I do = grown up child).
Too late for me 😭
2 years is the magic number
2 years regarding what aspect? The year of the vehicle or 2 years to pay off the loan?
I had a 75 month loan and paid it off in 42 months. Sold it privately and took out another for 66 months. I'm hoping to pay it off in 2 yrs too. Never trade in your car if you can get it sold privately.
i have 40k negative equity i don’t know what to do
Damn
40K NEGATIVE WTF DID YOU BUY A RAMGE ROVER? 😮
Get an extra job and use it to pay it off fast.
Don’t ever have a car loan. Buy only what you can afford.
Yea, sure give me the money, and I'll make it 5 instead of 6. lol not everyone has the opportunity to do better.
Or just don’t finance a car lol