Need help on information on monthly payments

[Seabee1973]

what? what kind of insurance are you buying that costs 300 dollars a month?

close to 300, insurance on a sports car for a person that is 19yo will have to be full coverage as required by the lienholder. for me though I could get insurance for a car and a truck for roughly 150 a month but being 41 that's a huge difference than being 19 yo... premiums drop when you get to 25 & hopefully with no accidents..... most young people are "targeted" and also not having a decent credit history or have made too many quotes can greatly increase your insurance... drivers at a young age are generally referred to as inexperienced drivers, I did a couple quotes with the mustang and my truck combined and there was a difference close to 50 bucks which really sucks and in my opinion is generally unfair but it can vary from insurance company.. I did esurance and currently have Allstate but they are the same company, It varies. other companies came out to just about more but I have been on Allstate since I was 16 and 2 claims when I was forced off road by a head on driver and the other when I should have just run over bugs bunny in the rain which I lost control and said hello to a brick mailbox. All that was before I was 25. Back then I even searched for insurance for my own and it was not cheap at all

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[Seabee1973]

Forgot to mention too, insurance is also dependant on your demographic area... at that time I was in Dallas county...insurance is higher in that area as compared to Denton county or any of the outlying areas. Tarrant county is just as high if not higher than Dallas county

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[airjonny]

Dont get caught up in the monthly payments. Dont end up paying 45k for a 38k car.

Do a yr long experiment. Go on the build and price and spec up your mustang. Then in the payment estimator put in realistically how much money you can put down and the interest that you'll be paying. Then each month, take out that monthly payment each month and add that to your savings. Do the same with the insurance that you'll pay. If you can do that and maintain your standard of living, go for it.

 

[airjonny]

btw i got quoted on a 14 gt at allstate in IL. 22, speeding (11 over limit) 3 years ago.

150/month

 

[Firepath]

Any advice ?

Save the money and pay cash. Paying interest for anything is the same as less income - money that you can't use / money that you may as well not be getting. I look at depreciation on a new car in the same way, but when you're really passionate about something, and want it new, and want it long term, it matters less.

Not only that but the whole purchase will mean a lot more when it is a big lump of cash you worked hard and sacrificed for, so you will appreciate the value of it, and get more satisfaction from the achievement of your goal.

 

[RisingForce]

Dont get caught up in the monthly payments. Dont end up paying 45k for a 38k car.

Do a yr long experiment. Go on the build and price and spec up your mustang. Then in the payment estimator put in realistically how much money you can put down and the interest that you'll be paying. Then each month, take out that monthly payment each month and add that to your savings. Do the same with the insurance that you'll pay. If you can do that and maintain your standard of living, go for it.

How do you figure out that interest ??

If you buy a $38000 Mustang and put down the tax&title and finance the $38000 for 5 years at a 1.9% rate ( most banks and credit union can do 1.9% these days) , you'll end up paying $665/m.
If you keep that loan for full term , you've paid 665 x 60 = $39,900
So you've paid less than $2000 to finance a $38000 vehicle , which isn't that bad considering that out of that $665 you pay eachother , only $32 goes towards interest and rest of it towards principal ( simple interest loan)

You'd have to have really bad credit to pay $7000 in interest.


Now of course if he can wait a year and put $10k down , then he'll save more money on interest.

 

[fionic]

close to 300, insurance on a sports car for a person that is 19yo will have to be full coverage as required by the lienholder. for me though I could get insurance for a car and a truck for roughly 150 a month but being 41 that's a huge difference than being 19 yo... premiums drop when you get to 25 & hopefully with no accidents..... most young people are "targeted" and also not having a decent credit history or have made too many quotes can greatly increase your insurance... drivers at a young age are generally referred to as inexperienced drivers, I did a couple quotes with the mustang and my truck combined and there was a difference close to 50 bucks which really sucks and in my opinion is generally unfair but it can vary from insurance company.. I did esurance and currently have Allstate but they are the same company, It varies. other companies came out to just about more but I have been on Allstate since I was 16 and 2 claims when I was forced off road by a head on driver and the other when I should have just run over bugs bunny in the rain which I lost control and said hello to a brick mailbox. All that was before I was 25. Back then I even searched for insurance for my own and it was not cheap at all

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Damn. I pay 400 every 6 months for full coverage. But, I've never had any claims.

 

[Seabee1973]

Damn. I pay 400 every 6 months for full coverage. But, I've never had any claims.

my payments will be about 150 a month for both the truck and the 2015 Mustang GT, one being liability and the other full coverage. area makes a difference especially when you don't have to deal with hail regularly... damaging ones at that

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[EXP Jawa]

FWIW, I bought a new car right after I graduated from college 15 years ago (1999 SVT Contour). Don't get me wrong - I loved that car and miss it now that its gone. But it really was a mistake financially. I traded my Ranger on it - which still owned money at the time - so I financed most of the cost. I'm pretty sure it literally set me back years in terms of financial growth. I've been driving older cars ever since, in fact, I've yet to own one built this century. When I order my '16MY S550 next summer, I expect to have about $15K as a downpayment, and a trade worth around another $5K, so I'll only have to finance about half. I can't see doing it any other way at this point. I just can't justify how high the payments would be otherwise, even though I could afford them.

I guess that's my point - I wouldn't advise anyone to buy a new car without being able to pay, oh, a 1/3 to a 1/2 of the value upfront (depending on the actual price and circumstance), especially anyone just getting started.

 

[AnkD4]

How do you figure out that interest ??



If you buy a $38000 Mustang and put down the tax&title and finance the $38000 for 5 years at a 1.9% rate ( most banks and credit union can do 1.9% these days) , you'll end up paying $665/m.

If you keep that loan for full term , you've paid 665 x 60 = $39,900

So you've paid less than $2000 to finance a $38000 vehicle , which isn't that bad considering that out of that $665 you pay eachother , only $32 goes towards interest and rest of it towards principal ( simple interest loan)



You'd have to have really bad credit to pay $7000 in interest.





Now of course if he can wait a year and put $10k down , then he'll save more money on interest.

If you can get 1.9% I would put zero down. Take that $10,000 and put it in the market or even a CD and you'd get in excess of that 1.9% which would more-than-cover the $2,000 in interest expense and even lower the cost basis of the car. At an average return of 5%, you'd generate $2,500 in interest income > $2,000 interest expense. 5% is probably conservative in today's market.

 

[buRNout]

No sure what you mean by "No bills" but I can tell you, when I moved out on my own I WAY underestimated what life cost. I am 25 and make over 80k/year working 70 hours/week. My wife makes another 22k. Have to keep a nice car for work so I have that payment, my wife's Infiniti is paid off and nothing else besides a very low mortgage and the usual bills and there is still not as much wiggle room as I would like. Life is expensive. It's the things you don't plan for that get you. Medical bills, changing health insurance premiums, taxes and more taxes, food prices are crazy high right now. I have been working my butt off to get this new Mustang for 14 months, I have about 14,000 value in a trade-in, about 6k in cash and I am still worried with a household income of over 100k. I am not worried about what I can plan for, I worried about what I can't. If you ever plan on being independent one day, these are the things you need to consider because honestly, with no car payment, life will not be easy working just a retail job. Go to school and get a degree, one you can actually use. Or marry rich. Cause as it looks now, a year after purchase, that beautiful S550 is gonna be a big ole weight around your ankle.

 

[SLVRBACK]

I put 10k down and took out a 30k loan. My payments will be about 500 for the car and 250 for insurance. Im 23 and I live with my parents. I have a great full time job/benefits the whole 10 yards. I made a choice between making 800 payments for a car or an apartment. I chose the car. Eventually the monthly payments will swap to an apartment once its paid off.

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