Help me make sense of financing
Hi, I'm embarrassed to admit that I'm confused about best way to structure my financing deal, asking for the wisdom of who has done it before here (I am sure many have). I paid cash for my curre...
Forum Discussion
Tdavid wrote:wrgrs50s wrote:
Why not just tell the dealer you'll meet in the middle and it's 15K for my trade in or I'll go elsewhere and be done with all the figuring. Any way you skin it, it all comes down to what you want to do.
If your prepared to walk, most likely you will get a call within a few days that the management decided to work the deal. it's difficult when you find something you really want, but you'll be surprised with the outcome from a stern negotiation.
Just recalled a complication with this scenario. The $13.5k trade in keeps me just above $50k balance, which is a lower rate from GoodSam.
Below $50k and the rate jumps about 3/4 of a point. I remember running those numbers and seeing that keeping it above $50k is like free money.
Not knowing your exact numbers, this ^ still says you're not looking at this right.
Unless it's less overall interest payment it ain't free money and if it is, it's not much and you still are paying off more principle at some point.
Amortizing your original scenario
60k financed, assumed 4%
48 months you'll pay $9k or so in interest and pay off about 12k in principle.
Assuming you'll dump the 17k from the sale to principle, you'll owe about 30k after 4 years.
If you take the loan for 43k putting 17k down, you'll still owe a few thousand more but pay about the same amount less interest. So not much different either way, not taking into account inflation or time value of money.....not huge only 4 years.
Going by the 50% salvage value at 4 years, you're about break even either way.
Either way, you're money ahead to sell private based on your numbers. Will make more difference than when you spend the proceeds.
