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XTN
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Joined: 17 Jun 2004
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 Posted: Mon Nov 10, 2008 2:39 am Post subject: |
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| Mike@LG wrote: | Pretty good car, just, falls a tad short on what the EPA listed originally for gas mileage.
If gas mileage is the ultimate goal, I'd look at other alternatives.
Aiming for 25mpg? Or 30mpg? |
I wouldn't say gas mileage is the ultimate goal but more of a plus. My friend is a younger guy, 21, and having bought some real beat-up cars he's hoping to just get into something that's reliable and won't kill him financially if a problem does arise. So I'd say reliability is paramount. He's also been looking at Civics but he's hesitant to pull the trigger because the last one he had was a bit of a lemon. He was the type of guy who kept buying junkers hoping they'd last just long enough until he could make a move to get a better car. So now that he has a decent auto loan he wants to make sure that whatever he gets will last him awhile.. at least for the duration of the loan of 4 years.
If you have any recommendations for a sedan or coupe in the 8k range, the newer the better as he's been traumatized by older cars, I'd appreciate it and I'll pass the word on.
Thanks. |
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Mike@LG
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Joined: 10 Apr 2001
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Location: Orange County, CA
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| Posted: Mon Nov 10, 2008 5:46 am Post subject: |
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If he really wants reliability, Civics or Corollas.
Corollas by far are the least likely to be modded, raced, or treated badly.
I wouldn't want the guy spending 8k for a daily driver. Big enough market for him for those cars.
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https://lakersdraft.substack.com/
I am not an economic advisor nor do I advise economic strategies or plans. |
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oldschool32
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Joined: 24 Jun 2005
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| Posted: Mon Nov 10, 2008 8:15 am Post subject: |
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^How are Camry's and Avalon's reliability ratings?
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Mike@LG
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Location: Orange County, CA
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| Posted: Mon Nov 10, 2008 7:45 pm Post subject: |
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| oldschool32 wrote: | | ^How are Camry's and Avalon's reliability ratings? |
equally great...
really helps a lot to check the oil on the camry every month while fueling up though.
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Resident Car Nut.
https://lakersdraft.substack.com/
I am not an economic advisor nor do I advise economic strategies or plans. |
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55
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Joined: 04 Jan 2008
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| Posted: Tue Nov 11, 2008 8:47 am Post subject: |
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| kevin wrote: | I have a question. I am thinking of buying a new car next year. I paid off my current car years ago but didn't like the way the loan worked out.
It had all the interest built into the length of the loan. Meaning, if I paid it off in 36 months or 1 day, I still had to pay 36 months worth of interest.
Is there another type of loan I can get where the interests goes lower, as I make payments? |
That's usually for people with bad credit who don't have a choice and have to settle for this type of loan.
Make sure you get a "simple interest" loan. When you sign your contract at the dealership, it will say "simple interest" towards the top of the page.
That long contract is called "553". Ask them to show you the form before you sign it.
Interest on the loan will not change, if that's what you're asking. But what does change is the amount of interest you pay every month. For example....your payment is $400. You might start out with $300 in interest and $100 towards principle. Every month after that, more of your payment will go towards your principle and less towards interest.
Good luck. |
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angrypuppy
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Joined: 13 Apr 2001
Posts: 32762
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| Posted: Tue Nov 11, 2008 10:03 am Post subject: |
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| safari_in_cali wrote: | | kevin wrote: | I have a question. I am thinking of buying a new car next year. I paid off my current car years ago but didn't like the way the loan worked out.
It had all the interest built into the length of the loan. Meaning, if I paid it off in 36 months or 1 day, I still had to pay 36 months worth of interest.
Is there another type of loan I can get where the interests goes lower, as I make payments? |
I don't think that's legal. You can only be charged interest while you owe the bank money. They cannot charge you 3 years worth of interest if you pay off your balance early. There are some loans where you'll have to pay a fee to the bank if you pay off the loan early - it's called pre-payment penalty, but it's not the same as the interest. You should avoid any loan that has a pre-payment penalty provision. Most car loans don't have pre-payment penalty, so if you pay off the loan the next day, you will only pay the interest for one day and so on. |
Of course it's legal; you just won't find bank or finance company willing to financially engineer the deal for you. The loan packages offered are cookie cutter deals. I suppose you could engineer a deal (or even arb it) so that you'd pay more interest in the first months, and less in the end, but there are no free lunches. You'd be charged an interest premium over what you should normally pay in the earlier months, and then pay less interest in the remaining months. We could even play games with the numbers, with a constant payment, though the IRS probably wouldn't allow your business to deduct most of the interest in the first year or so. |
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