Down payments and auto loans?
I am new to this stuff and I have some questions. I want a new vehicle and I'm willing to make monthly payments since I have no other bills to pay. However, I don't have enough money of course for any vehicle. I'm wondering, if a car costs say $25000 and has a down payment of $2000, can I just get an auto loan of $2000 and make my monthly payments? Or is it more complicated?
- chorleLv 71 year ago
There is more for starters if you finance a car you will be required to buy Full Coverage auto insurance and if you are under 25 years old and/or have less than 7 years as a licenced driver it can be very expensive.
Also there are taxes, registration fees, gap insurance, and extended warranties that you are likely to get and increase the price of the car.
If you decide you want a new or certified used car then it would be wise to talk to your credit union or bank who will likely give you a lower interest rate and might be able to pre approve you
- EdnaLv 71 year ago
If the car you're interested in has a selling price of $25,000 and you can afford a down payment of $2000 with the dealership, then the remaining balance of $23,000 (plus,if you wish, Tax, Title, and License) will be financed by a finance company or by a bank for the next 5 or 6 years, with an annual percentage rate of at least 18% each year until the note is paid in full.
When you finance a car, you don't pay the dealership where you bought the car - you pay the lender that finances the car, according to the terms of the loan you make with the lender; and the terms of a loan will vary among all the various lenders.
- ScottLv 71 year ago
You can't borrow the down payment. If you have to do that, you have no business trying to buy a car.
- AlCaponeLv 71 year ago
Unless you are at least 18 years old, have good established credit, and a good steady job making sufficient income, you have no chance at getting a car loan. And by the way, you make cash down payments and get a loan for the remainder of the cost of the car. You do not get a loan for the down payment, as you suggest. Furthermore, there will taxes, fees, and insurance (the BIG one). So, I'm guessing this means you don't buy a $25,000 car.
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- Anonymous1 year ago
If you don't even have the down payment you can't afford the car.
- regeruggedLv 71 year ago
You cannot afford a $25,000 car.
- PercyqtedLv 71 year ago
No, you need the down payment in cash
Then you need an auto loan to cover the rest of it.
If a car costs $25000 remember extras such as registration fees and tags are going to add another couple of thousand so work on $28000 that means you need at least $2800 down payment.
Once you get the car you need to factor in such things as insurance and gas costs.
Welcome to the wonderful world of lifelong debt, once the finance companies get their claws into you they never let go, you end up spending a large proportion of your earnings just paying off the interest incurred on the loan.
- 1 year ago
where you buy in africa ,in africa doller ?