Quick Number Crunching
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MBWorld Fanatic!
Joined: Feb 2009
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From: Northern NJ
2009 C63
Quick Number Crunching
I'm trying to get into a used/cpo C63 for the summer and as the time is drawing closer and closer, I've been having thoughts about putting a smaller down, and taking the slightly higher monthly payments. For example, instead of putting lets say 15k down, I would put 5k down and keep the rest. I know in this day and age I will never be able to find a savings or CD that will match the auto loan interest rate, but I'm thinking the convenience of paying out of the bank for at least the first 8-9 months (including insurance) would be worth the difference between the auto loan rate and whatever the bank gives me. Does this make sense? Or am I crazy?
Let me end that by saying, although I may not be as well-off as some of you, I have no worries about not being able to make the monthly payments, so you shouldn't either
Let me end that by saying, although I may not be as well-off as some of you, I have no worries about not being able to make the monthly payments, so you shouldn't either
Thread Starter
MBWorld Fanatic!
Joined: Feb 2009
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From: Northern NJ
2009 C63
Assuming I get a terrible deal on a used/cpo (this is for worst case scenario purposes), I'd be looking at around 1100-1200 over 5 years. (Please note that I do not expect for it to take 5 years to pay it off, however I am leaving a cushion should something happen in the near future, layoffs, family emergencies, etc.) Anyway, this is only a couple hundred more than if I had put 15k down, but this way 1) have more money on-hand in case of any emergencies, 2) can ease into a more structured saving/budgeting plan, 3) have a small safety net for myself should anything unfortunate happen in my life.
Please note again, I am not a negative person (lol) but I was always taught to expect the best but prepare for the worst.
Please note again, I am not a negative person (lol) but I was always taught to expect the best but prepare for the worst.
Last edited by drawde; Apr 13, 2009 at 04:37 PM.
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From: Phoenix, AZ
2014 Ghibli S Q4 & 2008 C350
+1 Smart
I actually made this very same decision last year when I bought my '08 C350. I was debating paying tax/title and making a small down payment, or making a larger down payment. I went with the larger down payment, about 1/3 value of car. It gives me more free cash each month plus I've prepaid a significant portion of the deprecation I'll take in the first few years. It's nice knowing that if the worst happens I'm not upside down on the loan and can walk away and maybe even pocket some cash.
Besides, I probably would if invested the extra cash if I didn't use it on the car and I don't need to tell you where that would of gone...
I actually made this very same decision last year when I bought my '08 C350. I was debating paying tax/title and making a small down payment, or making a larger down payment. I went with the larger down payment, about 1/3 value of car. It gives me more free cash each month plus I've prepaid a significant portion of the deprecation I'll take in the first few years. It's nice knowing that if the worst happens I'm not upside down on the loan and can walk away and maybe even pocket some cash.
Besides, I probably would if invested the extra cash if I didn't use it on the car and I don't need to tell you where that would of gone...
Super Member
Joined: Apr 2009
Posts: 502
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From: SoCal
C63
So with your budget you can actually buy a brand new one. Besides interest on used cars are a lot more anyways... just my 2 cents.
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Thread Starter
MBWorld Fanatic!
Joined: Feb 2009
Posts: 1,035
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From: Northern NJ
2009 C63
This is true, however in the short term I think this way works out. I don't have to worry about any payments at all in the short term (8-12 months depending on down) and in the long term the difference between the monthly payments are minimal. Using lets say 0k, 5k, 10k, 15k, the jump from month to month is like 100 more per step.
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