Need help with auto loan for C32...
Thread Starter
Newbie
Joined: Jan 2008
Posts: 12
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soon to be C32
Need help with auto loan for C32...
I have decided on this car, now its time to figure out the loan. I'm a little bit confused. My budget for the whole car is about $22,000 (including a a warranty) I want to do 72 month to get the easiest payments, but I'm just afraid that the warranty may expire before I'm done paying off the car and if I run into a huge problem like trans with the car then I would be screwed.
What did you guys end up doing who decided on this car? In terms of the loan? Would it be wise to put down a larger down payment like $20,000 w/ $5,000 down? I just want the best APR as possible, and in the end a nice C32 with a decent warranty. I never have gotten a loan besides my student loan so I would appreciate any advice to help me out. Thanks guys.
What did you guys end up doing who decided on this car? In terms of the loan? Would it be wise to put down a larger down payment like $20,000 w/ $5,000 down? I just want the best APR as possible, and in the end a nice C32 with a decent warranty. I never have gotten a loan besides my student loan so I would appreciate any advice to help me out. Thanks guys.
Super Member
Joined: Jul 2006
Posts: 925
Likes: 2
From: Maine
Not an AMG :(
I have decided on this car, now its time to figure out the loan. I'm a little bit confused. My budget for the whole car is about $22,000 (including a a warranty) I want to do 72 month to get the easiest payments, but I'm just afraid that the warranty may expire before I'm done paying off the car and if I run into a huge problem like trans with the car then I would be screwed.
What did you guys end up doing who decided on this car? In terms of the loan? Would it be wise to put down a larger down payment like $20,000 w/ $5,000 down? I just want the best APR as possible, and in the end a nice C32 with a decent warranty. I never have gotten a loan besides my student loan so I would appreciate any advice to help me out. Thanks guys.
What did you guys end up doing who decided on this car? In terms of the loan? Would it be wise to put down a larger down payment like $20,000 w/ $5,000 down? I just want the best APR as possible, and in the end a nice C32 with a decent warranty. I never have gotten a loan besides my student loan so I would appreciate any advice to help me out. Thanks guys.
Don't get a 72 mo loan. It's just not a good idea for a variety of reasons. Besides, there isn't a huge difference in the payments between a 60 mo and 72 mo. Also, the interest rates are going to be significantly higher on the longer loan. If you are a follower of Clark Howard, you'll know not to purchase a car unless you can afford to pay it off in 48 months.
If you are still in college, you may be eligible for financing through your institute's credit union. If yes, finance it that way. Go to the credit union and get pre-qualified first.
Put a down payment of whatever you can afford (without going broke). Personally, I try and predict how much the car will depreciate in value over the length of the loan and put that (or close to it) as a down payment.
SPONSOR
Joined: Aug 2006
Posts: 4,909
Likes: 130
From: Houston
C63S
How much $$ do you have to put down? How is your credit?
I bought my car 2 years ago for $27k. I put $5k down plus the roll over from my trade in, which was $4k.
C32: $27k
Warranty: $2k
Down Payment: $9k
Loan Amount: $20k @ 7.1% for 60 months.
After purchasing, I changed my mind on the warranty (you shouldn't) and I ended up getting a check in the mail for $2k which I sent in to my bank to knock down the note on the car.
I work full time as well as run a small IT Consulting Company, so I had a little extra $$ to throw at my car. Within the first year I paid off over 75% of the loan and have been car payment free on the C32 since March.
I personally feel that any extra money you have should go to your debts first. I'm assuming that you are a recent grad with limited funds. If that is the case, then I would do nothing more than a 60 month loan. This will give you some room in case of hard times and will still allow you to pay more each month to stay ahead. I tried trading in my C32 a few months ago for a 2004 C32 or a 2005 C55 and the best I could get was $15k for a 2002 with 60k miles. So, keep that in mind when buying. You will not make money on this car (like many others) and it will most certainly require maintenance which is expensive.
The car is very fun to drive and has been my favorite vehicle. I have owned a Supra, E30 M3, E46 M3, Turbo Eclipse, Land Rover, Prelude, etc and none of them compare to the C32.
If you can put $5k down on the car and within the first year get the loan to around $12k or less, then you will be in good shape if you need to get rid of it for any reason.
I bought my car 2 years ago for $27k. I put $5k down plus the roll over from my trade in, which was $4k.
C32: $27k
Warranty: $2k
Down Payment: $9k
Loan Amount: $20k @ 7.1% for 60 months.
After purchasing, I changed my mind on the warranty (you shouldn't) and I ended up getting a check in the mail for $2k which I sent in to my bank to knock down the note on the car.
I work full time as well as run a small IT Consulting Company, so I had a little extra $$ to throw at my car. Within the first year I paid off over 75% of the loan and have been car payment free on the C32 since March.
I personally feel that any extra money you have should go to your debts first. I'm assuming that you are a recent grad with limited funds. If that is the case, then I would do nothing more than a 60 month loan. This will give you some room in case of hard times and will still allow you to pay more each month to stay ahead. I tried trading in my C32 a few months ago for a 2004 C32 or a 2005 C55 and the best I could get was $15k for a 2002 with 60k miles. So, keep that in mind when buying. You will not make money on this car (like many others) and it will most certainly require maintenance which is expensive.
The car is very fun to drive and has been my favorite vehicle. I have owned a Supra, E30 M3, E46 M3, Turbo Eclipse, Land Rover, Prelude, etc and none of them compare to the C32.
If you can put $5k down on the car and within the first year get the loan to around $12k or less, then you will be in good shape if you need to get rid of it for any reason.
MBWorld Fanatic!
Joined: Jan 2007
Posts: 3,342
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From: PA
S600, GL450, GLC 43
I have decided on this car, now its time to figure out the loan. I'm a little bit confused. My budget for the whole car is about $22,000 (including a a warranty) I want to do 72 month to get the easiest payments, but I'm just afraid that the warranty may expire before I'm done paying off the car and if I run into a huge problem like trans with the car then I would be screwed.
What did you guys end up doing who decided on this car? In terms of the loan? Would it be wise to put down a larger down payment like $20,000 w/ $5,000 down? I just want the best APR as possible, and in the end a nice C32 with a decent warranty. I never have gotten a loan besides my student loan so I would appreciate any advice to help me out. Thanks guys.
What did you guys end up doing who decided on this car? In terms of the loan? Would it be wise to put down a larger down payment like $20,000 w/ $5,000 down? I just want the best APR as possible, and in the end a nice C32 with a decent warranty. I never have gotten a loan besides my student loan so I would appreciate any advice to help me out. Thanks guys.
See yeah
OH yeah, that way YOU can decide on how LONG you want to pay it off my friend.
Thread Starter
Newbie
Joined: Jan 2008
Posts: 12
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soon to be C32
Thanks for all the great advice guys. I should have close to $10,000 to put down after I sell the two cars I have. So that should be okay then with a 60 month loan. Yes I'm still in debt from being a student but I only have about $9,700 left on that loan. I recently paid off my other student loan, and also both my credit cars. So that should help my credit a bit, I don't have the best credit because I was sent to a collection a long time ago when I was 18 and had to go to ER with no insurance. But I figure an auto loan shouldn't be too difficult.
I like the Idea of paying off the loan early, the only thing is my APR for my student loan is terrible its 15.9% I really want to get rid of this loan, I still haven't attempted to refinance it. Thanks again for the help guys.
I like the Idea of paying off the loan early, the only thing is my APR for my student loan is terrible its 15.9% I really want to get rid of this loan, I still haven't attempted to refinance it. Thanks again for the help guys.
Thread Starter
Newbie
Joined: Jan 2008
Posts: 12
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soon to be C32
Right now I have bank of America, So you're saying I should try to get the auto loan from a bank rather then dealership? Or is this just to open up my options into private sellers? All I know is I want a warranty and the best APR. I thought I had to take the dealership route for that?
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Senior Member
Joined: Oct 2006
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From: Seattle
2003 C32
think about it, you can pay it off with a credit card and still be off with a better deal (CC APR ~10%)
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Super Member
Joined: Jul 2006
Posts: 925
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From: Maine
Not an AMG :(
Thanks for all the great advice guys. I should have close to $10,000 to put down after I sell the two cars I have. So that should be okay then with a 60 month loan. Yes I'm still in debt from being a student but I only have about $9,700 left on that loan. I recently paid off my other student loan, and also both my credit cars. So that should help my credit a bit, I don't have the best credit because I was sent to a collection a long time ago when I was 18 and had to go to ER with no insurance. But I figure an auto loan shouldn't be too difficult.
I like the Idea of paying off the loan early, the only thing is my APR for my student loan is terrible its 15.9% I really want to get rid of this loan, I still haven't attempted to refinance it. Thanks again for the help guys.
I like the Idea of paying off the loan early, the only thing is my APR for my student loan is terrible its 15.9% I really want to get rid of this loan, I still haven't attempted to refinance it. Thanks again for the help guys.
MBWorld Fanatic!
Joined: Jun 2007
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From: Philadelphia, PA
2008 A8L, 2002 996TT X50, 2009 X5
Anyway, first step is to check your credit report and get your FICO score, if you haven't already done that. If you score well, try to refi that student loan (or pay it off, if you can). Yahoo Finance has some good calculators, if you're looking at what you can afford for car payments. Agree w/ Jerry, if you can avoid having to go past 60 months, do it - it'll likely save quite a bit on what you can get for APR (the shorter, the better).
Member
Joined: Aug 2007
Posts: 120
Likes: 3
C55
Only my opinion. I'd pay the student loan first. Get that thing out of your life. They are raping you with the interest, rediculous at that rate. The older you get the more you put it off becuase they'll let you ride it out for years and your desire for more toys goes up. The credit unions need your business and will offer you a very good rate. You may want to wait until you get your first job (with health insurance), many companies have credit unions associated with them and can get you an even better %.
Also, do you really want to incur more debt as we roll into recession? You may have a tough time finding a decent job.
Also, do you really want to incur more debt as we roll into recession? You may have a tough time finding a decent job.
