Financing Terms for cars - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

shane_c · 04-05-2007, 02:57 PM

Does anyone know off hand what car dealers offer 72 and 84 month financing terms. Thanks!

worth · 04-05-2007, 03:00 PM

do you seriously want to have to pay for a car for 6 or 7 years?

Bobblehead · 04-05-2007, 03:01 PM

Talk to your bank.

I didn't get a loan that long, but my bank (First Calgary) was a MUCH lower interest rate than I could get through a dealer.

shane_c · 04-05-2007, 03:02 PM

Quote:

Originally Posted by worth

do you seriously want to have to pay for a car for 6 or 7 years?

I'm more concerned about having a lower monthly payment. Just trying to save a few bucks that all.

shane_c · 04-05-2007, 03:04 PM

Quote:

Originally Posted by Bobblehead

Talk to your bank.

I didn't get a loan that long, but my bank (First Calgary) was a MUCH lower interest rate than I could get through a dealer.

My current rate for my car loan is 5%. I had gone to RBC after buying the car to see about getting a loan to consolidate the car and the balance on my credit card and the best they could do was something like 9%.

worth · 04-05-2007, 03:04 PM

I understand where you're coming from, but I just find it rediculious how everyone is in debt for the rest of their life it seems. 50 year mortages and the like. It's sad really how they've roped us in and we can never get out.

Sylvanfan · 04-05-2007, 03:07 PM

Pretty much all manufacturers will offer those types of terms. Thing is most of them have higher interest rates especially if you go over 48 months. From what I hear the 60/84 lease is popular these days. Basically you take the vehichles total value divide it by 84 and pay that payment for 60 months or 5 years. After that time you owe the last 24 months worth of payments if you want to buy it, or you can trade it in at that time. Not saying thats a smart thing to do, but I think it's something that dealers started offering up to get payments down and to look like they're not for such long terms.

Burninator · 04-05-2007, 03:10 PM

For my Mazda I pay for 5 years at 4.1% I believe.

shane_c · 04-05-2007, 03:10 PM

Quote:

Originally Posted by worth

I understand where you're coming from, but I just find it rediculious how everyone is in debt for the rest of their life it seems. 50 year mortages and the like. It's sad really how they've roped us in and we can never get out.

That's the sad reality when the cost of living goes up faster than most of our salaries.

Burninator · 04-05-2007, 03:11 PM

Quote:

Originally Posted by worth

I understand where you're coming from, but I just find it rediculious how everyone is in debt for the rest of their life it seems. 50 year mortages and the like. It's sad really how they've roped us in and we can never get out.

Not really a lot of choices out there for first time home owners in this city.

shane_c · 04-05-2007, 03:13 PM

Quote:

Originally Posted by Burninator

Not really a lot of choices out there for first time home owners in this city.

Don't even get me started. We were only able to get in after everything went ape ****. But let's get back on topic here.

Sylvanfan · 04-05-2007, 03:14 PM

Quote:

Originally Posted by worth

I understand where you're coming from, but I just find it rediculious how everyone is in debt for the rest of their life it seems. 50 year mortages and the like. It's sad really how they've roped us in and we can never get out.

It is frustrating, but a lot of consumers are sort of doing it to themselves. The house thing is tough to control as you do need a place to live. But in terms of vehichles we don't all need brand new vehichles on 5 year payment plans to drive. Often we make that choice ourselves whether it serves us well or not. Whats criminal is the amount that young people are being allowed to borrow on stuff like personal lines of credit, vehichles, and retailer type credit cards. My parents never had access to credit like that, and my grand parents sure as hell didn't. You basically could borrow money to buy a house and that was it. Today if you didn't borrow to buy it you seem like the exception to the rule.

PS not trying to be an arrogant jerk here, I'm as guilty of this way of life as anyone. I've been reviewing my finanical failure of the last 5 years and have some very harsh criticism for myself.

return to the red · 04-05-2007, 03:28 PM

we have 6 year financing on our Mazda that we got from Kramar. Some say it's silly but think about this, the loan is an open loan so we can make payments on it whenever we want. The amount of money that we save on the monthly payments from a 6 year term over a 4 or three we save and put down as a lump sum against the principle. After one and a half years we have only 10,000 owing on a car that cost us 30,000 with 5000 put down.

Of course we have added some of my bonus and stuff to that extra amount but we are still ahead of the game

photon · 04-05-2007, 03:41 PM

Quote:

Originally Posted by shane_c

I'm more concerned about having a lower monthly payment. Just trying to save a few bucks that all.

Actually having a longer term costs you more money, you don't save, you just get lower monthly payments.

shane_c · 04-05-2007, 03:51 PM

I know it'll cost more in the long run, but it will cost less per month.

ken0042 · 04-05-2007, 04:13 PM

One other factor to keep in mind- with that long of a term you may find that at year 4 or year 5 you will owe more than the car is worth. Which means no option for trading it in, and possibly an issue if the car is involved in a crash and needs to be written off.

I was in the same situation as you a few years ago, so I went and bought myself a 1 year old car. As was said above; not all of us can afford to buy a new car- myself included. One of the tough lessons I've learned throughout my financial woes is to not live beyond my means.

Also, are you sure where you will be in 6-7 years? I ask because I know you've tossed around moving to Yukon, Manitoba, and the East Coast.

Not trying to be preachy; just trying to help a guy out.

iggypop · 04-05-2007, 04:19 PM

Why don't you just buy an older car that is more in your price range?

shane_c · 04-05-2007, 04:23 PM

Quote:

Originally Posted by ken0042

One other factor to keep in mind- with that long of a term you may find that at year 4 or year 5 you will owe more than the car is worth. Which means no option for trading it in, and possibly an issue if the car is involved in a crash and needs to be written off.

I was in the same situation as you a few years ago, so I went and bought myself a 1 year old car. As was said above; not all of us can afford to buy a new car- myself included. One of the tough lessons I've learned throughout my financial woes is to not live beyond my means.

Also, are you sure where you will be in 6-7 years? I ask because I know you've tossed around moving to Yukon, Manitoba, and the East Coast.

Not trying to be preachy; just trying to help a guy out.

Good point on owing more than it may be worth. Not sure where I'll be in a few months let alone a few years. I'm just trying to cut expenses to start paying down some debt so I can maybe have a bit of money when the time comes for us to move.

shane_c · 04-05-2007, 04:24 PM

Quote:

Originally Posted by iggypop

Why don't you just buy an older car that is more in your price range?

I wanted warranty. I haven't had much luck with used cars and it ended up costing a fortune to keep them running.

FCAV · 04-05-2007, 04:50 PM

I ended up taking a 5 year on my Jeep this past August at a 4.9. I would definitely not go anything longer than five, due to the interest rate jump after.

Literally, the difference in monthly payments between 60 months and 72 months was around $20, just because they really ding you on interest for the next year.

I think for Daimer-Chrysler, it goes from 4.9 to 7.2 or so, which causes the jump.

This is also coming from a 24 year old, first-time 'new' buyer. I as well have had nothing but problems with my three prior used vehicles.