Question

I'm going to need to buy a car soon. My baby is a Corolla that's 15 years old and 215, 000 miles. I have two small children I tote around in it. I don't want to wait to the point of it becoming unreliable. I'm looking at a new Camry, or used maybe from Enterprise. I'm trying to understand interest rates- how come it's 2. 9% APR for 72 months but if I wanted a shorter term it'd be higher interest? Could I do it for 72 months and then just pay more each month to make it shorter? I know the end of the year is the best time for deals. Maybe I could even get 0%? It's been SO LONG since I bought a car. My goal is to start saving each month what I'd have in a car payment but I'm having a hard time figuring out what that is. I don't want a 72 month loan. I have excellent credit so I'd likely qualify for the best rate at the time. 0% would be amazing but I know those deals don't happen until later in the year and maybe that's for a shorter term loan? Help a girl out!  

Answer 1

When I bought my first car solo, I was single on small salary trying to pay student loans. I wanted a new car because I commuted for work and wanted the reliability. Because I didn’t have lengthy credit or a huge down payment, I did the 72 month loan but set up my payments to pay extra every 2 weeks. I believe my payment was $365, and I set it up to do $200 every 2 weeks and was able to shave a lot of interest and months off by paying so much every two weeks. Also look at end of year models. They are trying to get 2019 gone. We just got my husband a new vehicle and had much more wiggle room because they wanted to get that one off the lot to make room for the 2020 trucks.  

Answer 2

I’m not much help, but you can pay it the loan off as fast as you want making it a shorter term. And if it helps provide any insight, I have a car payment of $354 a month. I had a “good” credit score when I got the loan and 6% APR. I’m 20 and my husband co-signed. Not sure if that helps at all  

Comments

@arguable I pay $370 a month with a 4. 5% interest rate. My dad cosigned for me but my credit was still good. It's just his was better so I chose to have him co sign

Answer 3

I personally wouldn’t buy from Enterprise. You can find some great deals at places other than a rental place. I would just do the 72 months. Pay more each month.  

Comments

My enterprise car purchase was excellent. They only sell the top percentage of the cars directly the rest are sent to dealerships to sell as a used car. I drove it for years with no issues. They are more base line models but you know all maintenance was done on time.  

Answer 4

Hi! I work for a car dealer! The interest rates that are advertised are for tier one credit, so anything over a 740. Yes the fine print is important to read. Alot of times those low payments advertised are with tax tags fees and first payment down. Used cars are just as good, ask for the car fax, alll the dealerships have carfaxes available to show you. The end of the month is always when dealerships want to move cars, and can negotiate down to the “invoice price” (thats what we pay for the car) If you do go the used car route, check out what warranty is left on them, this will also be found on the car fax. and if the dealership offers a platinum wrap warranty for an extra cost (make sure that warranty is bumper to bumper coverage)

Comments

@beck64163 thank you! Do you know if you're usually allowed to pay off early?  

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@warder42 that depends on who you’re getting financing through

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@warder42 depends on the state. NJ doesnt have a penalty for early pay off. Thats something you can ask any bank, or car dealer in your area

Answer 5

But something at least 2-3 years old as that’s when most depreciation is. If you buy new you end up owing more than car is worth.  

Answer 6

Have you tried carvana. com? We just pirchased through them and no dealership fees and everything was a breeze. They do financing as well.  

Answer 7

Honda finances at 0. 9% for new ones with good credit

Answer 8

I bought my camry 0% in Feb of 2014. Most loans do not have penalty for paying off early. I would go the route of paying it early as you mentioned!  

Answer 9

I typically purchase a good quality car that is 3 years old with low mileage and a manufacturers warranty still in tact. But, my last car was purchased with a loan from my credit union and was a new 2015. I paid it off in 3 years and have been 2 years+ without any car payment. I never get a car with more than $325 as a payment. I don’t exceed $500 a month for all car expenses, insurance, gas and maintenance.  

Answer 10

My one comment. I would be hesitant to buy a used car through a rental car company. Most people aren’t kind to their rental cars!  

Answer 11

Don’t take the HUGE depreciation of a new vehicle - let someone else take that huge hit on it brand new - buy it 2-3 years old with low mileage for the year if want newer . You won’t believe how much you lose when you drive it off the lot. Look up values of a car you want to buy on Kelly Blue book. Don’t pay more than what it is there and usually you can get it for even less. If you want a real eye opener get the brand new price and then check the value of the same car 2-3 years old. We make sure we use 10-12k miles per year for war year that the car is old to know we are getting lower miles. If you find a used one with higher miles you’re not getting a deal bc the value take a huge hit for high mileage

Answer 12

I am saving for car as well. My baby is also a Corolla, 2014 and I LOVE it! However, in about 5 -7 yrs, I have to be realistic in possible repairs or selling, so I am putting my saving challenges into a savings acct so I can pay cash for a "new-er" Audi crossover when time comes.  

Answer 13

If you haven't been having problems out of it, that is really low miles for that year model and Toyota's are excellent for their logevity. I would wait another year but start putting money back for one now.  

Comments

@hialeah we have a Camry from that era that now has 260, 000 miles on it and it’s still going strong! A friend of ours got 290, 000 miles out of hers.  

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@unnecessary4 I’ve seen them well over 300, 000 miles as long as they are maintained.  

Answer 14

Okk. 1st off I love Camry OR ANYTHING TOYOTA! 2nd DON'T EVER BUY A RENTAL CAR!  

Comments

@infirm I can't speak to toyotas but I agree about not purchasing rental cars. My husband is a huge car guy and has always said rental cars are used and abused and he'd never buy one.  

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@infirm and mary thank you! I figured they'd kept up with the maintenance but didn't think about them being abused!  

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@warder42 yeah I worked for enterprise please whatever you do don buy a rental car!  

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@warder42 I seriously doubt they keep up with maintenance. We’ve gotten some rough cars over the years. Black oil, bad brakes, low fluid levels, you name it. We even accidentally broke the 4 wheel drive once. My husband tried to tell them when we turned it in and they totally blew him off saying he probably didn’t know what he was doing.  

Answer 15

IMO buying new is the biggest financial mistake you can make. The car loses so much value the second its driven off the lot. Find something 1-3 years old, the original owner already took the big hit

Comments

Sorry I didn’t mean to reply that to you made it a new reply

Answer 16

We looked at used when I bought a car last year. With the financing which we needed it was more to buy used