Comments on: Financing car loan, will I get an advantage in taking the loan over four years and paying more than the…? http://nxus.net/financing-car-loan-will-i-get-an-advantage-in-taking-the-loan-over-four-years-and-paying-more-than-the-2.html Solution to your Niche Question Sat, 15 Oct 2011 00:02:34 +0000 hourly 1 http://wordpress.org/?v=3.1 By: mike c http://nxus.net/financing-car-loan-will-i-get-an-advantage-in-taking-the-loan-over-four-years-and-paying-more-than-the-2.html/comment-page-1#comment-3719 mike c Sat, 28 Nov 2009 00:25:33 +0000 http://nxus.net/financing-car-loan-will-i-get-an-advantage-in-taking-the-loan-over-four-years-and-paying-more-than-the-2.html#comment-3719 Not on a simple interest loan the best solution is either finance for the shortest time you can afford or put the additional money into some kind of savings account and pay the debt off in one lump as the loan matures. Both your method and mine achieve the same goal but with the savings account you can at least keep a few bucks that the finance company didn't earn and get to apply them to your loan. I kept an AWD 4.7 Grand Cherokee for moving people and stuff on longer trips but to be honest I fall little short of that 16-19 mark, with a V-8 and full time all wheel drive it gets right at 15.5 mpg total the 4.0 does much better with 2-wd as does the 4.7. Not on a simple interest loan the best solution is either finance for the shortest time you can afford or put the additional money into some kind of savings account and pay the debt off in one lump as the loan matures. Both your method and mine achieve the same goal but with the savings account you can at least keep a few bucks that the finance company didn’t earn and get to apply them to your loan.
I kept an AWD 4.7 Grand Cherokee for moving people and stuff on longer trips but to be honest I fall little short of that 16-19 mark, with a V-8 and full time all wheel drive it gets right at 15.5 mpg total the 4.0 does much better with 2-wd as does the 4.7.

]]> By: xx_satanic_mechanic_xx http://nxus.net/financing-car-loan-will-i-get-an-advantage-in-taking-the-loan-over-four-years-and-paying-more-than-the-2.html/comment-page-1#comment-3720 xx_satanic_mechanic_xx Sat, 28 Nov 2009 00:25:33 +0000 http://nxus.net/financing-car-loan-will-i-get-an-advantage-in-taking-the-loan-over-four-years-and-paying-more-than-the-2.html#comment-3720 While the first poster is 100% correct, I am in favor of taking that longer term and paying the higher payment. Just because I need to see progress. If I am putting just $60/month in the bank, I don't see the progress. Seeing that principle balance come down is progress in my mind. Yes, with his method you do make a little bit on interest if it is in a savings account. But we are talking $720/yr here. That is less than $10 in interest. I went 60 months on my loan, but paid as much as I could every month. Some months it was just the minimum, some it was 3-4x that. I think its more a matter of what you prefer - IMHO. As for the Jeep - Its interesting that you mention is was detailed annually. To that I say "So what"? Was the oil regularly changed? Transmission serviced? Coolant flushed? Air filter replaced? Did they use good gas or crap? You can polish the outside until it shines like a new penny. If the car isnt maintained, you have a shiny piece of junk. While the first poster is 100% correct, I am in favor of taking that longer term and paying the higher payment. Just because I need to see progress. If I am putting just $60/month in the bank, I don’t see the progress. Seeing that principle balance come down is progress in my mind. Yes, with his method you do make a little bit on interest if it is in a savings account. But we are talking $720/yr here. That is less than $10 in interest. I went 60 months on my loan, but paid as much as I could every month. Some months it was just the minimum, some it was 3-4x that. I think its more a matter of what you prefer – IMHO.

As for the Jeep – Its interesting that you mention is was detailed annually. To that I say "So what"? Was the oil regularly changed? Transmission serviced? Coolant flushed? Air filter replaced? Did they use good gas or crap? You can polish the outside until it shines like a new penny. If the car isnt maintained, you have a shiny piece of junk.

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