/biz/ - Business & Finance

>>497650
The biggest down payment you can comfortably make is the best one. Interest rate depends on new or used, outside or in house financing.

Don't let a salesman use the 4 square close on you.

100%

>>497650

If you'd like to buy be a poorfag dont get a car loan. Take whatever amount youre comfortable with spending as a down payment and go buy a used car off CL for that amount.

>>497652
what's the four square close?

>>497650
Try to get a line of credit with your bank instead or a personal loan this way you will pay 5-7%/year interest also some dealerships have 0% financing when you put 30% down for new vehicles also the new models come out in October so wait till November/December to get a last year model that will save you some cash

100%

>>497650
10% is generally the minimum. Beyond that, it depends on how much you have to put down and what size loan you're looking for. Putting more down means a smaller loan and likely a more favorable rate.

>>497664
>>498089
Not if you get a low rate. Makes more sense to finance in many cases because you will make more keeping that money invested than what the interest will cost. It's also worth noting financing a car is a great way to build credit before applying for a mortgage.

>>497664
>>497652

Technically if he had investments that he could put his money into that earn a higher % interest than the cost of the car interest, then he should take a loan and not pay anything down.

But since he's here asking about it, I'm going to assume that's not the case.

>>498130

You can easily get a rate below 2% with zero down. I'm paying something like $600 bucks in interest in 5 years on a $15000 dollar car. It's not worth paying anything down unless you want to decrease the duration of the loan or the size of the payment.

>>498102
>Not if you get a low rate. Makes more sense to finance in many cases because you will make more keeping that money invested than what the interest will cost. It's also worth noting financing a car is a great way to build credit before applying for a mortgage.

I'll give you ten to one odds that OP won't.

>>497650

>Buying a car

The answer is simple - don't get a loan. Ever.

If you can't afford to buy a car with money that you already have, whether it be a Mercedes, Bentley, budget Toyota or Honda, then don't buy one.

>>498143

Top lel m8. Cars are essential to living in american society. You can't get a job without a car. A car is a proper investment unless you live in a major city with excellent public transport. In the US you can count those on 1 hand.

>Have awesome credit
>get fixed loan at or below the rate of inflation
>invest the cash you could have used to buy the car
>pay loan off at leisure because you make more money holding investments
Or how I learned to stop worrying and love money.

>>498143
Lol.

>He thinks leveraging a good credit score to obtain cheap financing below the rate of inflation, ultimately saving you money versus paying cash, is a bad idea.

Back to middle school m8.

@OP: buy the more inexpensive car you can tolerate and that will reliably get you where you need to go. Please don't buy a new car.

>>498156
>Please don't buy a new car.

A new car can last much longer than a used car.
For the first few years nothing will break in a new car, saving you money.
Gas mileage is much better on newer cars.

Why would you buy used when a new car pays for itself in the cost of gasoline alone after a few years?

>>498163
>A new car can last much longer than a used car.
>For the first few years nothing will break in a new car
>Gas mileage is much better on newer cars
Please post this on /o/, I want to watch.

>>498156
>obtain cheap financing below the rate of inflation

Except for the fact that a) this doesn't exist, and b) OP probably doesn't have an overly fantastic credit score.

>>498149

That's right. And he should be saving money to buy a car, and not financing it.

>>498166
>That's right. And he should be saving money to buy a car, and not financing it.

I pay 120 dollars a year in interest m8.

>>498165

/o/'s advice is useless unless you're an autistic auto hobbyist.

>>498170
If there's one thing /o/ would be able to explain, it's that all of those points are entirely wrong.

Many new cars will be off the road before much older cars are. It depends on the car. All are not equal.

Things most definitely can break in the first few years of ownership, especially if your car is a new generation or model. Some of this may be covered under warranty, but not always. Some older cars are significantly more reliable and/or more affordable to maintain. Again, it depends on the car.

Gas mileage on newer cars is actually a lot worse than you'd expect. Safety (extra weight) and emissions standards prevent newer cars from pulling away in gas mileage. Many older cars (ex Honda CRX) still get excellent gas mileage even when compared to the most efficient cars available new today.

Arguing new cars as being more affordable is very wrong, not only from a depreciation standpoint, but also from the standpoint of cost of ownership.

>>498166
You're an idiot, inflation is nominally 3% and even retards can get 4% fixed APR on a car loan.

>>497650

If you want to get somewhere in life follow these rules with car buying.

1. Don't pay more than 10% of your asset value. Exclude your family home from that list of assets. Don't finance the purchase. But it outright.

2. If the above doesn't allow you to by a decent car and you have to finance the purchase don't pay a purchase price of more than 20% of your current gross yearly income. Try and get a rate below 10% but certainly below 15%.

The old person that is inside of you will either prosper or dither because of what you do today.

>>498174

Unless you're an auto nerd you'll never be able to tell the difference between the 20 year old piece of shit will run for another 10 years and the one that will be a pile of junk a month down the road. Used car deals are much more risky if you aren't knowledgeable about cars and dealerships cannot be held accountable for duds. They are also harder to finance and interest rates are higher.

Things can break, but it is not very likely. If it does it is likely covered under the warranty. Again it is a matter of risk and non-experts ought err to the side of caution.

As for depreciation, it is nearly a non-factor in today's market unless you are buying a car that is 10 or more years old with lots of miles on it. A 7 year old version of my car (Nissan Versa) sells for only 4k less than a brand new car.

>>498196
>Used car deals are much more risky if you aren't knowledgeable about cars
You don't need to buy something decades old. But a car that's even just a couple years old will save you a ton on depreciation. And you can have a mechanic inspect the car if you're unsure of what to look for.
>and dealerships cannot be held accountable for duds
Lemon Law, dealerships absolutely are responsible.
>They are also harder to finance and interest rates are higher.
Easy to finance a lightly used car. A car older than that will probably be cheap enough to buy outright.
>As for depreciation, it is nearly a non-factor in today's market
>A 7 year old version of my car (Nissan Versa) sells for only 4k less than a brand new car.
4k less than what "brand new car", a Fiesta? After 7 years, that Versa is absolutely worth a lot less than it was new. Unless you live somewhere outside the US with a crazy car market, depreciation is as much of a factor as it ever was. What is worth paying attention to is when the depreciation happens. The value will eventually level off, and cars will depreciate a lot slower after the initial drop a few years in. You will pay less to own a car, even if you assume something will break, if you buy a car that's a few years old.

>>498206
This guy know whats up! In 2008 i bought a brand new a Hyundai Tucson for my wife I paid 25K+ tax , a year latter a bough a 2007 Hyundai tiburon for 10K including tax and now that im moving out of the country im going to sell both vehicles so i been looking at the going prices, i can sell the Tucson for 9k-10k and the tiburon for 5k-6k this means that to own the Tucson for 6 years it cost me 15K more or less and to own the tiburon for 5 years it cost me 5K both vehicles have been super reliable and other than the regular service and tires i haven't spend a dime on them. Long story short im never buying a new car again

>>498206

Long story short you've got to buy the right car. For me that was a 2014 Versa because I wanted a reliable first vehicle with a guaranteed low cost to own. Because they don't depreciate, it makes sense to buy new. Because they are just about the lowest priced car on the market, it makes sense to buy a Versa over anything else. (The Versa is less expensive than a Fiesta.) For a few thousand difference I could have had an old civic with 100k miles on it, but that mileage is worth the difference when I get to put it on the car. The story is the same for other modern economy cars like the civic and the fiesta.

>>498184
>You're an idiot, inflation is nominally 3% and even retards can get 4% fixed APR on a car loan.
>3%
>below 4%

Yep, I sure am the retard here, right?

>>498241
>Because they don't depreciate
But they do. Look at the price of a 2007 Versa and compare it to the price of a new one. The only difference is that the cost of the car is so low, you don't stand to lose as much even if depreciation takes half the value. But there isn't a (normal) new car that won't depreciate.

>>498249

11k vs 15k
its like $1.5 per day or in other words: nothing

>>498259
Try $7k, and that's if you sold it yourself instead of trading it in.

Or over 50% loss of value.

>>498153
>less than 0.01% of people will do this

>>498170
>quotes dollar figure paid in interest.
nothing about rate or amount borrowed

stop trying to troll so hard

>>498170
>>498165
>>498174

Aut/o/b/o/ts transform and roll out. Any interest rate below 7% is good. Also down pay as much as possible.

>>498166
You can get 0.9 or 0.0% financing on certain cars right now. How can this not be below inflation, unless we're in a period of deflation?

Whatever you are comfortable with OP.

>And what is considered a good interest rate on an auto loan?
Anything below 7%.

Now for all you ">huur duur loans" faggots, is it really worth going without a car for however long it takes you to save up? Why wait two years to buy a car when you can get it now, pay it off over 2 years and only have a tiny amount of interest to pay. Look at it as a sort of convenience fee.

And if you have 30k to spend on a car do you really want to drop it all at once? Wouldn't it be a better idea to put like 10k down and leave the 20k for payments or in case something important comes up and you really need to use it?

>>498163
http://www.nytimes.com/2014/09/27/automobiles/ford-recalls-745000-vehicles-for-fault-that-could-disable-air-bags.html
that is all

>>499049
>he doesnt realize that GM has recalled cars a decade old
I think the real moral of the story is not to buy American.

>>499045
http://www.mrmoneymustache.com/2011/04/15/getting-started-3-eliminate-short-termitis-the-bankruptcy-disease/

>>498206
>7 year old versa
>4k less than new versa

What are you smoking?

>>499055
Nice article and I agree with it. But how is it relevant to my post? It would be nice if you would make a point instead of linking an article.

>>498153
high quality fixed income yields are extremely low right now. equities market looks expensive. there isn't a great "safe" investment that will make you much of a spread over whatever great interest rate you get.

>>499043
if you borrow to buy a quickly depreciating asset you're gonna have a bad time

>>498241

Same thinking and make. I just got a 2015 Versa a couple months ago for $14k. Took a loan, but I intend to have it paid off by next summer (rather than over 5 years at 1.74% I think). The total financing would only have been an extra $580 but I want it out of the way ASAP. Even with low income (restaurant job) it's easily manageable.

Great mileage to boot.

>>498142
It would still be a better idea to get the cheapest car you can tolerate, rather than financing something more expensive that you don't really need. That's great if you get 4% financing on your brand new BMW, but now you're paying $600/mo (or however much it is) rather than the (for example) $300/mo you could be paying for a decent sedan.

>>499045

Mmmm, I love FD RX7's.

If I wasn't a young poorfag who hasn't gone through university yet, I would buy one in a heartbeat.

>>497650
If you're looking for the best rate to invest the cash elsewhere buy the car with cash and fully pay it off then refinance it.

>>498163
>new car pays for itself in the cost of gasoline alone after a few years
I pay around $0.30 per gallon of regular gasoline. I could run the car till it explodes and wouldn't save shit.

>>499356
Of the three shitboxes that the jap companies produce, the Versa is far and away the worst. You would have been better off getting a corolla or a fit.
Nissans in general are overrated when it comes to reliability but this is especially true for their budget car. seriously, a scion probably will have better reliability

>>499338
>what is gap insurance

>>497650
100% cash

It's a depreciating asset. Buy a basic car with cash. You're not trying to impress ayone.
Been there, learned that lesson.

>>500850
Something stupidly unnecessary, Alex. Can I have Anal Bum Covers for $1600?

>if you need to borrow and get covered by gap insurance, you probably can't realistically afford whatever you're trying to buy

>>497650
Why don't you just lease a car?

If you have to use credit for anything you're fucking retarded. Only use 100% cash.

>>500962
leasing only makes sense if its an expensive new car and you intend to use it for three years or less.

Feels good driving a 30 year old BMW that I got for $0.

>inb4 spare parts raping you

I got a spare car for parts in the deal too. Eat shit jews.

>>497650

Depends on the dealer for all questions.

Generally, ten percent is considered a minimum.

I would recommend that, if you're so poor, you buy a used car you could pay off within a year or less (wholesale is preferable).

>>499049
>recall
Ford pays for it, something on an old car breaks, you pay for it

>>497650
>Buying a car
Bro, they give you the keys when you test drive it. Just pull out a gun or knife in mid freeway and tell the salesman to get out.

THEY ALREADY GAVE YOU THE KEYS MAN! It's honor system at that point, and like I said,
>Buying a car

>>499856
>I pay around $0.30 per gallon of regular gasoline
Okay I'll bite, how? Do you live in Saudi Arabia or something?

100%

>>497650
$0
get a low .5% or 1.5% apr loan with gap insurance ($300)
and if you total it, you won't have money tied up in it

>>499856
In the United Arab Emirates it is almost this cheap. It cost me like $30 to fill my tank

If I lived there I would just drive a landcruiser or range rover

>>497650
0% if you get a good rate. Why not, rates right now are as low as ever. Use the down payment cash for something that will make you more than the rate.

>>498149
>A car is a proper investment unless you live in a major city with excellent public transport.

It's not an investment, dipshit. It's a necessary depreciative asset.

With that logic buying a house is an "investment" when you're just living in it.

>>499891
I never had an issue with my 97 Sentra

is the reduction in quality a recent thing? I looked at a Versa in 2013 and it seemed pretty nice

>>497650
>What is an approprite down payment when buying a car?
100%.

>And what is considered a good interest rate on an auto loan?
0%

Why do people desperately want to buy things they can't afford?

>_>

Only put down tax, title, and license.
Accept no interest rate higher than 10%.
Have the ABILITY to pay it in full but keep your money and make payments on a monthly basis.

ONLY buy lightly used cars in warranty.

>>497650
Always buy used cars. 2006-2010.

If you live in Europe, buy a peugeot 307-407. They are cheap and reliable, plus don't eat too much gas.
If you live in the states, go ask /o/ for some advice.

>>498153

doing this. financed $15k of my car loan at 0.9%