How much is the monthly payment of your fit?
Member
Joined: Jan 2012
Posts: 20
From: Ponchatoula, LA
13 years ago I bought a Mazda Protege. The dealer told me that Mazda was offering something like 3% financing on 4 years. I asked what 3 years looked like and he said zero percent. I asked why he didn't tell me that up front and he said almost nobody who bought a Protege could afford a three year loan. ??!?
I generally pay cash for cars now. I did take a small loan on the Fit and paid $290/mo for a year, and then paid off the loan.
I understand the low interest rates, etc., argument, but I think the bottom line is that some people - particularly younger folks - are buying cars that they really cannot afford.
I generally pay cash for cars now. I did take a small loan on the Fit and paid $290/mo for a year, and then paid off the loan.
I understand the low interest rates, etc., argument, but I think the bottom line is that some people - particularly younger folks - are buying cars that they really cannot afford.
Member
Joined: Dec 2011
Posts: 143
From: Colorado
Really, checking interest between 2-3%? Have you checked recently? 5 yr jumbo CD's are at 1ish% and they should be far better than checking rates. Let me know if you see a bank with 2-3%... rates are terrible right now.
Member
Joined: Jan 2012
Posts: 20
From: Ponchatoula, LA
My bank savings account gives 3% interest, but it's Keesler Federal Credit Union. My Chase bank savings account only gives like a .5%.
Member
Joined: Dec 2011
Posts: 143
From: Colorado
https://www.kfcu.org/page.php?page=62
1.5% on their "Advantage" checking which come with a ton of rules.
https://www.kfcu.org/page.php?page=61
Member
Joined: Aug 2011
Posts: 188
From: Salt Lake City, Utah
This young person (me) is doing alright:
Just got my tax return and paid my loan balance down to $6000 (started at 8k). Not bad for a loan that's three months old. Agree with what you are saying about paying cash. Even at 2.99%, I can't WAIT to get this paid off. Hoping to before the end of the year.
Just got my tax return and paid my loan balance down to $6000 (started at 8k). Not bad for a loan that's three months old. Agree with what you are saying about paying cash. Even at 2.99%, I can't WAIT to get this paid off. Hoping to before the end of the year.
Member
Joined: Jan 2008
Posts: 4,371
From: NC USA
So your dad may be doing the smart thing by making high payments but for a much shorter time.
If he borrowed that $11079.31 for 60 months his payment would be $225.45 per month but he would pay a total of $13,526 (225.45x60 months) instead of $12.000 ($500x24 months). Nothing wrong with that.
Member
Joined: Apr 2010
Posts: 1,302
From: Louisville
I have two different banks giving >2% on checking right now. Bank of little rock and commonwealth bank and trust here in Louisville.
Member
Joined: Jan 2008
Posts: 4,371
From: NC USA
Lets say you bought your Sport for $18,000 including tax, tags, and license. A little high but not too much.
You put $5000 down and financed the rest ($13,000) at 1.9% for 60 months at $250 a month?
Unfortunately, the total payments are 60x250 = $15,000 meaning you're paying $2000 in interest. 15000/13000 is 1.1538 ratio; thats a 2.9% interest rate, not 1.9%. If your loan was 1.9% your interest would be about $1300, not $2000 and your monthly payment about $238 a month.
Nobody ever said car dealers, or finance agencies in general, calulate interest by standard ways. If you quiz them you will probaably find some 'fees' thrown in there that you won't get back if you pay off your loan early.
PS the calculation is supposed to be
n n
s = (1+i) where n is the number of payments, i is the interest per payment, since its compounded, and s is the factor to multiply the original loan value to determine the total loan to be paid. Diving by the number of payments yields the monthly payment. Its a calculation that has been standard for a hundred years or more.
If you get a 3% loan thats 1/4% per month.
And if you try to pay it off early be aware that interest is not collected evenly thru the loan but more up front than at the end by method known as the rule of 72. Assuming a 12 month loan, if you add the digits 1 thru 12 for the months in a year the result is 72; interest is collected 12/72 the first month, 11/72 the second, 10/12 the third ... and 1/72 the last month. Thats the reason you can't just add your patyments and subtract from your total note value.And its why a lot of prospective buyers end up 'under water', that is they owe more on their current car than they thought.
Ain't car-buying fun? Caxeat Emptor.
Last edited by mahout; Feb 7, 2012 at 09:23 AM.
Member
Joined: Jul 2011
Posts: 40
From: United States
Lets say you bought your Sport for $18,000 including tax, tags, and license. A little high but not too much.
You put $5000 down and financed the rest ($13,000) at 1.9% for 60 months at $250 a month?
Unfortunately, the total payments are 60x250 = $15,000 meaning you're paying $2000 in interest. 15000/13000 is 1.1538 ratio; thats a 2.9% interest rate, not 1.9%. If your loan was 1.9% your interest would be about $1300, not $2000 and your monthly payment about $238 a month.
Nobody ever said car dealers, or finance agencies in general, calulate interest by standard ways. If you quiz them you will probaably find some 'fees' thrown in there that you won't get back if you pay off your loan early.
PS the calculation is supposed to be
n n
s = (1+i) where n is the number of payments, i is the interest per payment, since its compounded, and s is the factor to multiply the original loan value to determine the total loan to be paid. Diving by the number of payments yields the monthly payment. Its a calculation that has been standard for a hundred years or more.
If you get a 3% loan thats 1/4% per month.
And if you try to pay it off early be aware that interest is not collected evenly thru the loan but more up front than at the end by method known as the rule of 72. Assuming a 12 month loan, if you add the digits 1 thru 12 for the months in a year the result is 72; interest is collected 12/72 the first month, 11/72 the second, 10/12 the third ... and 1/72 the last month. Thats the reason you can't just add your patyments and subtract from your total note value.And its why a lot of prospective buyers end up 'under water', that is they owe more on their current car than they thought.
Ain't car-buying fun? Caxeat Emptor.
You put $5000 down and financed the rest ($13,000) at 1.9% for 60 months at $250 a month?
Unfortunately, the total payments are 60x250 = $15,000 meaning you're paying $2000 in interest. 15000/13000 is 1.1538 ratio; thats a 2.9% interest rate, not 1.9%. If your loan was 1.9% your interest would be about $1300, not $2000 and your monthly payment about $238 a month.
Nobody ever said car dealers, or finance agencies in general, calulate interest by standard ways. If you quiz them you will probaably find some 'fees' thrown in there that you won't get back if you pay off your loan early.
PS the calculation is supposed to be
n n
s = (1+i) where n is the number of payments, i is the interest per payment, since its compounded, and s is the factor to multiply the original loan value to determine the total loan to be paid. Diving by the number of payments yields the monthly payment. Its a calculation that has been standard for a hundred years or more.
If you get a 3% loan thats 1/4% per month.
And if you try to pay it off early be aware that interest is not collected evenly thru the loan but more up front than at the end by method known as the rule of 72. Assuming a 12 month loan, if you add the digits 1 thru 12 for the months in a year the result is 72; interest is collected 12/72 the first month, 11/72 the second, 10/12 the third ... and 1/72 the last month. Thats the reason you can't just add your patyments and subtract from your total note value.And its why a lot of prospective buyers end up 'under water', that is they owe more on their current car than they thought.
Ain't car-buying fun? Caxeat Emptor.
16,900 plus destination of 770
17,670
plus dlr fee of 500 (which included tag, and title)
18,270
plus florida tax at 6.5%
$19,457
so about $14,457 at 1.9 over 60 mo = $252
Member
Joined: Sep 2011
Posts: 49
From: alameda, ca
Hello goobers, i got my fit last may of 2011. Can i still cancel my extended warranty? Thanks
I had a HUGE down payment... $13.5k (it was the most I could put down, because they won't finance less than $5k)... which left me with about $140 per month payment over 5 years. Yeah, I had originally added an extended warranty... and of course I had close to 10% apr due to my credit (originally 12% before adding the warranty).
Eventually, I cancelled the extended warranty (refunded DIRECTLY into the principal), and paid $500 every chance I got... and my last payment, only 5 months after getting the Fit was just over $1k (to finish it off). Overall, I paid $200 in interest... instead of the $2,000 it would've been had I let it go all 5 years. My interest technically went up once I cancelled the warranty, as that was part of the financing deal (lower apr with the warranty). But, by then... I had paid enough off, that the difference was minimal.
Eventually, I cancelled the extended warranty (refunded DIRECTLY into the principal), and paid $500 every chance I got... and my last payment, only 5 months after getting the Fit was just over $1k (to finish it off). Overall, I paid $200 in interest... instead of the $2,000 it would've been had I let it go all 5 years. My interest technically went up once I cancelled the warranty, as that was part of the financing deal (lower apr with the warranty). But, by then... I had paid enough off, that the difference was minimal.
Member
Joined: Dec 2011
Posts: 782
From: WV
Questions about Honda Care extended coverage and Honda warranty info.
- Under what circumstances can I cancel Honda Care?
You can cancel Honda Care at any time, for any reason. If you cancel within 60 days, you will receive a 100% refund. After that, refunds are prorated by the time left on the contract or the mileage used.
Member
Joined: Sep 2011
Posts: 113
From: CaliFlorida
Here is the breakdown of my purchase on September 17, 2011:
01) _$18,330.00 - Cash Price of Vehicle: 2012 Honda Fit Sport w/Automatic - No idea why I got $200 off MSRP.
02) _($1,200.00) - Trade-In Value
02) _$17,310.00 - Trade Difference
03) __$1,133.45 - 6.5% MN Sales tax
04) __$1,449.00 - 8 Year 100,000 Miles Extended Warranty (Eventually Declined)
05) _____$75.00 - Document Administration Fee
06) ____$235.00 - Registration Tax
07) ______$6.00 - Plate Fee
08) _____$10.00 - Transfer Tax
09) ______$8.00 - Title/Transfer Fee
10) _____ $3.50 - State Deputy Filing Fee
11) ______$2.00 - Lien Recording Fee
12) _____$25.00 - Finance Charge (hidden on all docs except the finance one)
13) _ ($8,300.00) - Down Payment
Total to be financed: $11,776.95 @ 5.1999% for 60 months = $222.36
It isn't a great deal, but it was the best I could get here in MN.
I plan to pay it off next month.
01) _$18,330.00 - Cash Price of Vehicle: 2012 Honda Fit Sport w/Automatic - No idea why I got $200 off MSRP.
02) _($1,200.00) - Trade-In Value
02) _$17,310.00 - Trade Difference
03) __$1,133.45 - 6.5% MN Sales tax
04) __$1,449.00 - 8 Year 100,000 Miles Extended Warranty (Eventually Declined)
05) _____$75.00 - Document Administration Fee
06) ____$235.00 - Registration Tax
07) ______$6.00 - Plate Fee
08) _____$10.00 - Transfer Tax
09) ______$8.00 - Title/Transfer Fee
10) _____ $3.50 - State Deputy Filing Fee
11) ______$2.00 - Lien Recording Fee
12) _____$25.00 - Finance Charge (hidden on all docs except the finance one)
13) _ ($8,300.00) - Down Payment
Total to be financed: $11,776.95 @ 5.1999% for 60 months = $222.36
It isn't a great deal, but it was the best I could get here in MN.
I plan to pay it off next month.
Member
Joined: Jan 2008
Posts: 4,371
From: NC USA
Interesting, when I did the calculation I came up with $264.943.
Good excel formulas.
Member
Joined: Jan 2008
Posts: 4,371
From: NC USA
Here is the breakdown of my purchase on September 17, 2011:
01) _$18,330.00 - Cash Price of Vehicle: 2012 Honda Fit Sport w/Automatic - No idea why I got $200 off MSRP.
02) _($1,200.00) - Trade-In Value
02) _$17,310.00 - Trade Difference
03) __$1,133.45 - 6.5% MN Sales tax
04) __$1,449.00 - 8 Year 100,000 Miles Extended Warranty (Eventually Declined)
05) _____$75.00 - Document Administration Fee
06) ____$235.00 - Registration Tax
07) ______$6.00 - Plate Fee
08) _____$10.00 - Transfer Tax
09) ______$8.00 - Title/Transfer Fee
10) _____ $3.50 - State Deputy Filing Fee
11) ______$2.00 - Lien Recording Fee
12) _____$25.00 - Finance Charge (hidden on all docs except the finance one)
13) _ ($8,300.00) - Down Payment
Total to be financed: $11,776.95 @ 5.1999% for 60 months = $222.36
It isn't a great deal, but it was the best I could get here in MN.
I plan to pay it off next month.
01) _$18,330.00 - Cash Price of Vehicle: 2012 Honda Fit Sport w/Automatic - No idea why I got $200 off MSRP.
02) _($1,200.00) - Trade-In Value
02) _$17,310.00 - Trade Difference
03) __$1,133.45 - 6.5% MN Sales tax
04) __$1,449.00 - 8 Year 100,000 Miles Extended Warranty (Eventually Declined)
05) _____$75.00 - Document Administration Fee
06) ____$235.00 - Registration Tax
07) ______$6.00 - Plate Fee
08) _____$10.00 - Transfer Tax
09) ______$8.00 - Title/Transfer Fee
10) _____ $3.50 - State Deputy Filing Fee
11) ______$2.00 - Lien Recording Fee
12) _____$25.00 - Finance Charge (hidden on all docs except the finance one)
13) _ ($8,300.00) - Down Payment
Total to be financed: $11,776.95 @ 5.1999% for 60 months = $222.36
It isn't a great deal, but it was the best I could get here in MN.
I plan to pay it off next month.
Be glad your dealer was honest; that $75 admin cost is pretty accurate, not like many who want $500 or more.
Member
Joined: Jul 2009
Posts: 670
From: SF Bay Area
Typically if the value is small, you're in one of those states.
If you happen to not be in one of those states, then this is just another variable you have to watch out for and factor into your negotiation to get the right bottom line price and not nickel and dimed.
Last edited by raytseng; Feb 7, 2012 at 09:43 PM.
Member
Joined: Sep 2011
Posts: 113
From: CaliFlorida
The next time I buy/help someone buy a car I will bring all this documentation for comparison. If I see a $500 admin fee, I can immidiately refute it as complete BS
