every so often you hear stories of people so passionate in their pursuit for something great that they willingly sacrifice all their freedom and devote 100% of their resources to realizing this dream.

for example, parents of a sick child paying for experimental treatments insurance won't cover; the struggling single mother of 4 who works 2 jobs just to meet rent so her kids can remain in their highly-rated suburban schools; the kid from a working-class family who longs for an ivy league education -- truly inspirational stories that motivate us to become better people.

add to that the story of someone who wanted a civic soooo bad...

...i am speechless

 

Woah! Might be time for an intervention with your bro about his finances. Even I don't want a civic si THAT bad.

 

If you don't plan on buying a house before the loan term is up then put all your cash into the downpayment. GAP insurance is a waste of money. Paying extra interest because you don't want to put down all your cash is a waste of money.

This is assuming no credit card debt of course. If you have that then pay it off before thinking about buying a new car. Your credit score will go up and you'll qualify for a better interest rate.

If you can't pay off your credit card soon enough, then buy a used car. Why do you need a new one?

I'll never understand why anyone needs something so bad that they're willing to pay loads of interest just to get it, emergency purchases notwithstanding.

$4000 down, 36 months, 4%. $441/month and it will paid off in 3 years. I regret even going that route because I just got into a position work-wise (going back to the location where I want to live) to buy a house.
I'm not bragging, just letting you know what good credit practice can get you.

Think of it this way:
$20,000 car 4% 0 down 36 months Total Interest Paid: $1,257.28
$20,000 car 6% 0 down 60 months Total Interest Paid: $3,199.60
$20,000 car 6% $5k down 60 months Total Interest Paid: $2,399.40

For that Civic Si example up there:

$22,000 car 9% 0 down 84 months Total Interest Paid: $7,732.64!!!

Would you want to end up paying nearly $30k for a $22k car?

 

One of the main reasons that inflation is so high is that most businesses are operating on money they have borrowed and are paying interest on, or I should say you are paying for them when you make a purchase, even with cash.... The only thing that is backing the money you spend is not some precious metal but the notes that the banks and credit card companies are carrying on debt owed them.... It is sad that people are like spoiled children and have to have the immediate gratification of possessing things they can't afford without becoming indentured servants to those that profit by giving them the shovel to dig a hole they will never get out of..... Just imagine how many people today will die owing money that will force an estate sale for things they spent a lifetime paying interest on and not even having enough cash on hand to pay for their own funeral leaving there survivors in a position were they have to borrow money to pay for that as well as medical cost if there was an illness preceding the death..... It wasn't this way 40 years ago.

 

Trust me, I already have!

I have my bachelor's degree in finance, and am working toward my masters in personal financial planning. I have told him what he is going to pay in interest over the life of the loan, but he doesn't care. He really wanted that car.

But he's just young and dumb. And he's all about living large, no matter if he can afford it or not.

Personally, I f-ing pissed at my dad for cosigning for him. All he is doing is setting him up for failure. He is NEVER going to be able to make those payments. He works f-ing part time at SUBWAY!!!

There was nothing wrong with the 02 Civic Coupe EX that my mom got him for his 17 bday. (He was always the spoiled one, and I guess it just bugs the shit out of me!)

Oh, well!!

 

Personal finance planning needs to be taught in junior high (middle school) through graduation.... It will never happen though because the lenders would not be able to screw as many people that are knowledgeable about financing.... Most people have to learn the hard way and a lot of people are so used to being screwed they never learn and the bankers love them for it.... This very moment there is a mortgage lender on the Good Morning Texas program doing his thing to put the screws to people.

 

Wow, rolling in a new SI while you work at Subway . I work at the headquarters of top jewelry retailer and I'm still driving an ancient pos Camry. I won't even be able to get my Fit for at least another year, and only a used one even. This reminds me of my brother who bought an Evo 9 but he delivered Chinese food. Car ended up getting repoed.

It always cracks me up seeing new Lexuses with a Dominos delivery sign on top. It makes no sense.

To answer the original question, 20% of the OTD price down is always wise, coupled with a shorter loan term of 36 or 48 months to reduce your interest.

 

If you live in the DFW area image is everything.... Kids in Plano in the 80s were committing suicide because there parents were struggling to keep up financially and couldn't afford to buy them whatever the latest thing was they needed to be considered cool.... It is bad when a person that lives within their means, not in debt, and with a savings account is a social outcast because they aren't driving something they can't afford.... A lot of people will take a long term loan and make a minimal down payment thinking that after they have paid off other debts they will pay off the loan on their car early by making larger monthly payments and end up reducing what they pay in interest..... It never works out that way because they don't have the discipline to avoid buying other things they don't need and need to use credit cards to purchase..... Just a few years after Sears introduced credit cards they were making more of their profit from interest payments than from the many different products they sold.... I could go on forever but doing so would just upset me, increase my blood pressure and sound like the rambling of a crazy old man that is behind the times.