How did you finance your brand new car?

[Yellow_Festiva]

Originally Posted by marv&ro

We did the 2.9% finance deal.

XR6 $34.000 drive away no more to pay
10% deposit $3400 & borrowed the rest.
Loan term = 4 years
Total interest = around $950
Thats less then $250 a year

Why would tou pay cash

Would like to see the working out for the above figures if you don't mind :-$

[Silver Ghia]

I've always paid cash for the several new cars bought over the years. I'm of the opinion that if I cant afford paying cash for it, I cant afford the car. Too much money is wasted in interest on a depreciating asset.

[turboclown]

Originally Posted by Yellow_Festiva

Would like to see the working out for the above figures if you don't mind :-$

I work it out as roughly 1600 in interest, which is not much and a bit less if you paid weekly

[Yellow_Festiva]

Originally Posted by turboclown

I work it out as roughly 1600 in interest, which is not much and a bit less if you paid weekly

Would like to see the working out for the above figures if you don't mind :-$

[XBv8mmm!]

For the F? XR8 that will be mine (oh yes, it will be mine. Bwaaa haaa haaa haaa).

Sorry, carried away there.

Trade/sell the BF XR6, cash in some very nice shares, a bit of cash and the balance a small loan.

Either way it will be mine, Bwaaaa haaa haaa haaa.
Sorry there I go again.

[turboclown]

Originally Posted by Yellow_Festiva

Would like to see the working out for the above figures if you don't mind :-$

To many numbers to write out 60 odd calculations

[Yellow_Festiva]

Originally Posted by turboclown

To many numbers to write out 60 odd calculations

Interesting answer for someone who apparently worked in finance...

Not even simple interest?

[FormulaFG]

Ok, thanks for the responses guys. Different ideas and different situations for different people I guess.

I suppose I should clarify my situation to get the most accurate advice:

My current home loan is in fact an investment property. My cash flow is not great, hence the idea to put the car on the house so not as to be forking out much extra $$$ per week.

I am skeptical of fords 2.9% finance, though I am looking deeper into it as it is the best rate going around.

I'm probably not in the best financial shape to be buying a new car at the moment. I may be in a couple years, but then I may not be either. All that aside this situation transcends money. The window of opportunity for owning a new Falcodore is shutting quickly. Act now or forever miss out. I would absolutely hate to look back in 10 - 20 years when Ford and Holden are gone and regret not doing it when I had the chance.

[FormulaFG]

Originally Posted by Yellow_Festiva

Would like to see the working out for the above figures if you don't mind :-$

I'll have a go.......

$34,000 - 10% deposit = $30,600
$30,600 x 2.9% p.a = $887.40
Total Interest $887.40 x 4 years = $3549.60
Total loan $30,600 + $3549.60 = $34,149.60

Correct?

[ebxr8240]

The GTE big discount being ex Ford car.. Decent deposit and loan from bank.. No way is it better to add to home loan ! Especially buying a new car every 4 or 5 years !!

[Yellow_Festiva]

Originally Posted by FormulaFG

I am skeptical of fords 2.9% finance, though I am looking deeper into it as it is the best rate going around.

It's a very good rate, and one that should get serious consideration if your buying new.

Will they allow you to negotiate on that rate? Or are you paying RRP?

Be careful of the rate you get when the 2.9% is over... it may well be in the high double digits!

Oh, and your interest is charged every year of the loan on the outstanding balance, not the 1st year only, nor the first half only if your term may be 4 years....

Use this as a rough guide ;)

http://www.webmath.com/simpinterest.html

[turboclown]

Originally Posted by FormulaFG

I'll have a go.......

$34,000 - 10% deposit = $30,600
$30,600 x 2.9% p.a = $887.40
Total Interest $887.40 x 4 years = $3549.60
Total loan $30,600 + $3549.60 = $34,149.60

Correct?

No because interest is calculated daily and charged monthly on the current balance

[Yellow_Festiva]

Originally Posted by FormulaFG

I'll have a go.......

$34,000 - 10% deposit = $30,600
$30,600 x 2.9% p.a = $887.40
Total Interest $887.40 x 4 years = $3549.60
Total loan $30,600 + $3549.60 = $34,149.60

Correct?

Hang on.... you MUST have a finance background right???



Ps... yes, correct, or 'close enough' for arguments sake (not including fees / repayments and charges etc etc etc).

[turboclown]

Work out the daily rate on the total, chsrge that for the first month, then minus the payment and calculate the rate on that for the next month and keep repeating for the whole four years its alot of calculations to write out

[Yellow_Festiva]

Originally Posted by turboclown

No because interest is calculated daily and charged monthly on the current balance

So, show how 4 years of interest is roughly 1600.

Thats a lot of repayments in 4 years.....

[turboclown]

Do as I said, sit down with a calculator and work it out, the 2.9% is the comparison rate so includes fees
I think when I did it I based it on 30000 as I misread his post, but wouldnt make much difference

[LASTXR]

Originally Posted by Yellow_Festiva

Would like to see the working out for the above figures if you don't mind :-$

.

Dont know how it works.
The car was a 2013 XR $33.990 drive away.
2.9 comparison rate through Ford Finance
I gave them 10% $3.400 cash deposit.
My contract says

The fixed annual percentage rate under your loan
as at the disclosure date is 1.05% per annum

Total amount of interest charges payable is $944.40

Your loan term and total period of repayments is 48months

[Yellow_Festiva]

Originally Posted by turboclown

No because interest is calculated daily and charged monthly on the current balance

What sorts of fees and charges do you pay on a 2.9% loan per month?

What does the rate go to after 4 years?

[turboclown]

Originally Posted by marv&ro

.

Dont know how it works.
The car was a 2013 XR $33.990 drive away.
2.9 comparison rate through Ford Finance
I gave them 10% $3.400 cash deposit.
My contract says

The fixed annual percentage rate under your loan
as at the disclosure date is 1.05% per annum
I
Total amount of interest charges payable is $944.40

Your loan term and total period of repayments is 48months

Plus the fees and charges that equate to the 2.9% and you pay back roughly what I stated which is pretty bloody good.

That calculator yellow festiva linked to is year 7 maths that doesnt work the way most finance products in Aus do

[turboclown]

Originally Posted by Yellow_Festiva

What sorts of fees and charges do you pay on a 2.9% loan per month?

What does the rate go to after 4 years?

The 2.9 includes the fees and charges, as with any loan nothing happens after 4 years because as per the contract it needs to be paid off or they take the car back when you fall behind

[Yellow_Festiva]

Will be happy to be proven wrong and give out apologies where due.

[LASTXR]

After 4 years the car is ours.
Like I said for under $250 a year better
to use there money & put mine to good use.
You are better of putting the $30.000 in the
bank or put it on the house & just take out
the payments each month

[turboclown]

Jump on a banks website, find a loan calculator and punch in 30k for 4 years at 2.9% and see what it says

[Professor Farnsworth]

generally i buy cars with our own money - somtimes i finance. If i finance, i sacrifice everything else and pay the hell out of the car with every available dollar and pay it off in a year(ish). Sucks for doing anything else in the mean time but you own it a lot earlier and save a lot of money in interest.

finance, used intelligently, can be helpful.

[LASTXR]

Originally Posted by Yellow_Festiva

Will be happy to be proven wrong and give out apologies where due.

Dont know if the 2.9% deal is still on.
Just go to a Ford Dealer & talk to there Finance guy

[Yellow_Festiva]

Originally Posted by marv&ro

After 4 years the car is ours.
Like I said for under $250 a year better
to use there money & put mine to good use.
You are better of putting the $30.000 in the
bank or put it on the house & just take out
the payments each month

Hmmmmmmmm

Very sorry to Turboclown and Marv&ro

This off one of the Ford Sites:

When you purchase a car under 2.9% finance, you pay less interest over the four year term than you do on the minimum deposit required to secure the loan. For instance, a Diesel Territory costs $39,990 drive away. Under 2.9% you are required to place a 10% deposit equalling $3,999. The total amount financed over the 48 months is $37,192 after the deposit has been paid. That’s a whole $1201 of interest paid over the 4 years, or $300 a year, or $25 a month, or $5.7 a week or $0.82 a day. “How Good is 2.9%?” I would pay 82 cents a day to own the car I wanted today, in contrast to saving up the total amount and waiting.

By Harry at City Ford

http://cityfordrockdale.com.au/news/...ow-good-is-2-9

The above figures reflect what was said above.

If that is indeed the case and you can pay off the car in the 4 years under those terms you have played the game well and are indeed laughing.

Public apology given

[JC]

Originally Posted by marv&ro

.

Dont know how it works.
The car was a 2013 XR $33.990 drive away.
2.9 comparison rate through Ford Finance
I gave them 10% $3.400 cash deposit.
My contract says

The fixed annual percentage rate under your loan
as at the disclosure date is 1.05% per annum

Total amount of interest charges payable is $944.40

Your loan term and total period of repayments is 48months

If comparison rate is 2.9% then your fees are around $5 per month, with an establishment fee of $950. Or some combination that adds up to that. Total interest and fees is $1,845.48 over the 4 years of the loan. So around $450 per year, or $8 or so per week - while not quite the $250 a year you mentioned, still cheap finance for a new car!

[turboclown]

You dont need to apologise, as much as I like to be I know I cant be right all the time

[LASTXR]

No need to apologise, I worked it out like you at first.
Should of seen the smile on my face when the finance guy
went over the contract with me when we went to pick up the car

[Blem]

I purchased thru my business.
That was the only way I could justify & wear such a rapid depreciation.
Can take the wife & kids for quite a few holidays for that dosh every year.
Very nearly 5yrs on now from FGF6 purchase & car will be paid for in time.
FH may be on the cards. XRT or XR8 ?