I Have an 84 Month Car Loan

"Wobbles the Mind" (wobblesthemind)
02/12/2016 at 10:20 • Filed to: Financing

I decided to be candid and disclose my debts. I’ll sit down later and do another confession on how much the cars purchase prices were compared to what was actually financed (it’s sickening how much cheaper the vehicles were than everything else). The overall picture after all these posts will cement “paying cash” as the only correct answer. That said, I want others to know the cost of financing and car buying using my own experience as example.

Sorry, this is the only picture I have of both vehicles on me.

The total amount financed on my Kia Amanti is $8,281 for 48 months at 2.89% interest. The interest will be a total of $508.28 across 4 years (about $10.59 a month). My payment is $183.11 a month. The total spent would be $8,789.28 after 4 years.

The total amount financed on my Jeep Grand Cherokee is $28,209.52 for 84 months at 2.99% interest. The interest will be a total of $3129.20 across 7 years (about $37.25 a month). My payment is $373.08 a month. Thus making a total of $31,338.72 spent after 7 years.

So total loan costs are $40,128. My total monthly payment is $556.19.

Now if I had of spent all this on one vehicle, I could finance at $36,490.52 for 72 months at 3.18% interest. I would pay $40,131 over the six years with a monthly payment of $557.

Or, I could have financed the $36,490.52 for 48 months at 4.74% interest. I would pay the same $40,131 over four years instead but my monthly payments would be $836.

I should also confess that I bought both vehicles with no money down, so those prices are the full on cost of purchase.

The most important thing I have learned is that you need to watch the financing charges. Even more so than the vehicle price, interest rate, term, and down payment. I’ll get into that next time though.

DISCUSSION (28)

yamahog > Wobbles the Mind
02/12/2016 at 10:24

Any reason you picked these two? I assume they were used, not new?

davedave1111 > Wobbles the Mind
02/12/2016 at 10:26

I wouldn’t want a seven year loan because my circumstances could change so much in that time, but I have to admit that a big SUV isn’t the worst vehicle for coping with different requirements. With that in mind, the loan really isn’t all that expensive.

Aaron M - MasoFiST > Wobbles the Mind
02/12/2016 at 10:34

Interesting. I financed $13,000 of my BMW at 2.19% for 60 months (no down payment except the Subaru, which wasn’t much owing to it being a 160,000 mile modified car). If I take all 60 months to pay, the interest charges will be roughly $800. In reality, the car will be paid off no later than 2017, and I will pay maybe one third of that. My payment as-written is $230 a month...I’ve been paying about $600.

Future next gen S2000 owner > Wobbles the Mind
02/12/2016 at 10:34

Isolating the Kia alone, only paying 508 in interest isn’t bad.

vondon302 > Wobbles the Mind
02/12/2016 at 10:34

3 percent on a 84 month loan? Refinance that thing quick! I feel bad about my 60 month at 1.5

Wobbles the Mind > yamahog
02/12/2016 at 10:36

Best values. I wanted something smooth and completely different. The original price on the Amanti was $10,995, was marked down to $8,995 over 3 months. I saw a similar example listed for $6000 and used that vehicle to leverage the price down and ended up being $7,500.

The Jeep was because I needed something wide and low mileage for work since I do over 40,000 miles a year. The Jeep was marked down to $21,000ish because the sales team noticed it was a 4x2 Jeep. However, it had 32,000 miles on it and the 5.7l V8, and was precisely the car I was looking for including color combos, features, and 390lb-ft and runs on regular. Plus cheap enough for me to purchase a 75,000 mile full coverage warranty for $3,000.

K-Roll-PorscheTamer > Wobbles the Mind
02/12/2016 at 10:37

That is the longest loan term I've ever heard of.... (0_o)

Wobbles the Mind > K-Roll-PorscheTamer
02/12/2016 at 10:42

I qualified for a 96 month term on a new vehicle. So those are out there.

Wobbles the Mind > vondon302
02/12/2016 at 10:45

Ha, nah I’m very happy with the terms and rates

Chris_K_F drives an FR-Slow > K-Roll-PorscheTamer
02/12/2016 at 10:47

Apparently the banks still haven’t learned that offering these sort of terms isn’t a good idea.

Wobbles the Mind > Future next gen S2000 owner
02/12/2016 at 10:48

When the numbers are small everything seems ok. Even at 10% I’m not sure it would break a grand. In interest

K-Roll-PorscheTamer > Wobbles the Mind
02/12/2016 at 10:49

That just sounds incredibly unwise...

Wobbles the Mind > K-Roll-PorscheTamer
02/12/2016 at 11:00

I agree, but I enjoy it. Much like paying $20 a month for 24 months for a $600 phone after a $100 initial fee for the plan.

spanfucker retire bitch > Wobbles the Mind
02/12/2016 at 11:09

The overall picture after all these posts will cement “paying cash” as the only correct answer.

Not necessarily. I have a 0% interest loan on my car for 60 months. Thanks to the rate of inflation, I’m actually paying less than what I bought my car for.

spanfucker retire bitch > vondon302
02/12/2016 at 11:11

On an 84 month car loan? That’s actually stupidly reasonable.

yamahog > Wobbles the Mind
02/12/2016 at 11:12

Well, if it floats your boat and you can make the payments, that’s all that really matters :)

JQJ213- Now With An Extra Cylinder! > K-Roll-PorscheTamer
02/12/2016 at 11:12

It’s the new norm because cars are getting expensive.

96 and even 108 month loans are becoming normal now

spanfucker retire bitch > JQJ213- Now With An Extra Cylinder!
02/12/2016 at 11:15

I’ve heard of 96, but 108? Fucking hell.

yamahog > spanfucker retire bitch
02/12/2016 at 11:18

Agree. I’m fine with 1.9 for 60 months on my 1LE at just over what he’s financing on the Grand Cherokee, and paid cash for my winter beater. Seems the real difference is how much you feel like putting down.

K-Roll-PorscheTamer > Chris_K_F drives an FR-Slow
02/12/2016 at 11:29

With my ever growing knowledge on economics, I believe this was part of the reason for the 2008 recession, no?

thedevilinside > Wobbles the Mind
02/12/2016 at 11:30

Man a 84 month loan with that many miles a year is a risk of having a lot of payments to go when big repair bills start happening. If you do 35k miles a year in it, the Jeep will have 275k miles when you pay it off. I hope you don’t have many issues with it,it should be reliable and 4x2 is less items that can break.

vondon302 > JQJ213- Now With An Extra Cylinder!
02/12/2016 at 11:32

Ah whut...... Nope I’m out. Hell my house is a 180 month loan.

Eric @ opposite-lock.com > spanfucker retire bitch
02/12/2016 at 11:50

I could have “paid cash” for my car, but when crazy people are giving away 0% for 60 month loans, I’m happy to take them up on it. When they’re also throwing $2k at me to do it?! Yeah, I’d be stupid not to take them up on it.

A slushbox can be fun, too! > Wobbles the Mind
02/12/2016 at 12:15

Why did you choose the Kia, and how is it as a car? :)

Wobbles the Mind > thedevilinside
02/12/2016 at 12:59

I probably should have mentioned that after September the Amanti will be paid off and the $183 from there moves over to the Jeep. That bumps the vehicle to being paid off in 3 years, making it a 48 month loan for pay off. There’s a method, but still, it took 6 months for me to come to this choice.

thedevilinside > Wobbles the Mind
02/12/2016 at 13:36

That sounds like a well planned method

Wobbles the Mind > A slushbox can be fun, too!
02/12/2016 at 19:45

I think it’s cool! I wasn’t a car enthusiast, so researching cars that would be give me the most car, in the best condition, for the lowest price, while being unique lead me to find it. I didn’t even know Kia made the car until I happened to see it on Kelley’s Blue Book while checking trade in values on my Rio.

As a car, I think it does everything I need exceptionally well. It’s very much a premium car and in fact the build quality (this was the first car that taught what build quality is) and materials are still better than my 2012 Jeep and that thing is a very nice SUV. However, I love how responsive the engine paired with a transmission that is pure butter. You end up with an experience where the vehicle feels like it is 50% faster than it is. Driving at 40mph feels like you’re doing 60mph. Frequently I’ll accelerate from a stop and think I just hit 50mph, look at the speedo and see 35mph. It is seriously the fastest slow car I have ever experienced and it’s spoiled me. I do suggest placing bigger wheels and performance tires on it though, and think all the squishy riding big cruisers benefit from that modification.

It’s very cool how many compliments I get on it. Especially since it’s in far better condition than 95% of Amantis on the road. So older people always compliment how great it’s been taken care of. I only drive it maybe 250 miles of month, so that’s made it something a bit more special. I wouldn’t suggest it as a daily at all though, just a nice car that isn’t embarrassing to park next to newer Chrysler 300s or Chargers (which are the go to “cool” sedans out here).

A slushbox can be fun, too! > Wobbles the Mind
02/13/2016 at 11:42

Thanks, man! I believe that the best car is the one you could drive :)