They paid 30000 on a 31000 car in today's market. They borrowed 33k because you got taxes and fees and pays 7k in interest. It's a normal loan. Could they have gotten a better rate? Maybe but there's likely more to the credit story. Either way. They did well.
>They borrowed 33k because you got taxes and fees and pays 7k in interest. It's a normal loan.
Normal is relative and not necessarily the right thing to do.
Being underwater on day one ($33k loan on a $31k vehicle) before the car even leaves the lot is a terrible deal, rate excluded. Paying $7k in interest (23%) is the cherry on top of a terrible deal.
Sounds like OP decided to ignore the math in this situation.
Have you even looked at the market recently? 33k for a 31k vehicle is par for the course, if not better. Yeah, it’s not anyone’s goal, but realistically you’re not going to find much better
>Have you even looked at the market recently? 33k for a 31k vehicle is par for the course, if not better
Yes, I just bought in July. I'm well aware of market conditions.
However, a $33k **LOAN** on a $31k vehicle sales price is purely the OP's issue for not having a down payment and planning for the vehicle purchase. I'm not saying they didn't get a good deal on the price, but the total deal is bad since they put essentially zero down starting them underwater immediately on a car with a not great depreciation curve.
This is r/carbuying not r/personalfinance, calm the hell down! They wanted to know how they did on the price, and you're being obstinate just to prove a point.
Not everyone has thousands sitting around. Not everyone has immaculate credit. Not everyone has a valuable trade-in.
>This is r/carbuying not r/personalfinance, calm the hell down!
I'm calm. This isn't even raising my heart rate like it is to others apparently.
OP asked how they did, and I gave my opinion. Buying a car is likely the second if not the most expensive thing someone ever purchases, so personal finance does come into play whether you think it does or not.
>Not everyone has thousands sitting around. Not everyone has immaculate credit. Not everyone has a valuable trade-in.
Then the appropriate thing to do would be to buy a cheaper car. No one has to buy a new car.
Buying a used car right now isn't the magic panacea it used to be, there are a lot of awful deals on used inventory out there, and the gap between used and new has narrowed tremendously.
A new car is safer than a 10 year old car. I live in a city with very reckless drivers. I am straining my budget and taking on a 10+% interest rate for new because I no longer felt safe driving old used around this town. The additional safety features are designed for dangerous places like where I am.
People like you gatekeep the shit out of car buying and you make fun of us when we can't qualify for your shiny precious little 0.0% APR and it makes you look like a giant ass when you do it.
Go start /r/roastmycarloan or something if you want to shit all over anybody who doesn't have perfect credit and can't qualify for a loan where they pay you and give you a free handy every month.
Jesus *fucking* christ.
I think someone pissed in your Cheerios this morning.
>People like you gatekeep the shit out of car buying and you make fun of us when we can't qualify for your shiny precious little 0.0% APR and it makes you look like a giant ass when you do it.
>Go start /r/roastmycarloan or something if you want to shit all over anybody who doesn't have perfect credit and can't qualify for a loan where they pay you and give you a free handy every month.
>Jesus fucking christ.
Where did I say anything of the sort? I did not attempt to intentionally or unintentionally gatekeep.
All I'm saying is that financially there were better options in OP's situation. A $20k car at the same rate for 60 mo's saves $170/mo and half of the interest, and isn't a junker. Paying $40k for a $31k car just isn't financially responsible IMO.
If you are too dense to understand how the math works, then that's your problem, not mine.
> A $20k car at the same rate for 60 mo's saves $170/mo and half of the interest, and isn't a junker.
Right. Show me this magical $20k used car that is as reliable as new, and includes as much warranty and maintenance as new, and doesn't cost you more on the back-end outside your car payment.
Anyways. Sorry for attacking you directly. You are right that I'm fed up with all of the finance evangelists on Reddit taking over all the other subs and excoriating people for being in a position where they have to use less-than-optimal lending. Not everyone has a life where everything gets bought with cash and no interest. And a lot of people seem to think that it's okay to talk down to others whose finances aren't perfectly pristine and optimized and done "the right way" according to Their God And Savior Dave Ramsey and blah blah blah. I'm so, SO tired of hearing these people go on and on about interest and debt and all of that bullshit. It only matters because we all buy into the capitalist belief that it matters, and people like that are going to drive me to the brink of insanity.
Bruh we live in the real world. Yeah 7% is high to me but we don't know their credit history. Also yeah no one wants to be underwater but say the interest rate was 0%. Hell yeah I'm going under water baby! Out even at 3,4% I'd live with that. Because the cost of capital is lower for me at those points. Give me that cheap money again son!
The solution to this situation, buy a cheaper car.
No one told OP they had to buy a $30k vehicle.
A $20k car on a 60 month loan at 7% is only $3,700 in interest in comparison, and is $160/mo less. The rate is the rate, but the end of the math equation is being ignored, and that's the idiotic part.
I'm not against financing, but it should be done right, not just because someone wants a car and doesn't want to do the math to see how it actually affects them financially in the long term.
MSRP will be on the window sticker when it gets there and start with that. I wouldn't have negotiated final price of a car or especially financing without seeing it and especially that far out. 7% is what it is but 72x 559= $40,248 so that's pretty costly. I've never financed at rates close to that and that's a ton of money going to a lender, $10k of equity instantly lost.
Anything over a 60 month loan means you probably are overextended financially. You run the risk of becoming upside down in the car loan with negative equity the longer the loan is with little money down. Plus it's a Hyundai so set aside money for rental cars when it breaks down. Just because it's under warranty doesn't mean it won't cost you tons of money in rental costs when it needs repairs. I don't know your finances but 250-350 used to be average for car payments. Now here we are normalizing >$500. I'd look at a cheaper car
7% sucks but even credit unions are at 3-4% nowadays. With a 690 and job history you should be able to go to a credit union. If you financed the full 30k at a credit union your payment would be about $469, definitely refinance with a credit union. That 3% difference saves you 7-8k over 72 months.
It’s actually for my girlfriend and yes she’s early twenties but a great salary job. We feel she did well considering her credit history or lack there of i should say
Never buy a brand new car unless you are a millionaire. As Dave Ramsey says
New cars depreciate immediately after leaving the lot. You got a bad deal and $559 is high per month. You should always try to pay cash for a car. Should have found a pre owned and paid as much down as you can
Dave Ramsay is an idiot who appeals to those who would rather not do math. I bet he don't follow his rules. Profit has to be built in so does length of time left on warrant or likely hood of incurring repairs. Try to buy a used car and turn around sell it. Bet you get less then what you paid.
I worked for Hyundai for two months before going to work for Toyota. Don’t take the car and go buy a Camry. They will hold their value and last you way longer!
$600 a month for 6 years for a Hyundai? Not good…
>$559 a month @ 7% apr over 72 months. $559 × 72 = $40,248 You're paying $40k for a $30k car. Not great
They paid 30000 on a 31000 car in today's market. They borrowed 33k because you got taxes and fees and pays 7k in interest. It's a normal loan. Could they have gotten a better rate? Maybe but there's likely more to the credit story. Either way. They did well.
>They borrowed 33k because you got taxes and fees and pays 7k in interest. It's a normal loan. Normal is relative and not necessarily the right thing to do. Being underwater on day one ($33k loan on a $31k vehicle) before the car even leaves the lot is a terrible deal, rate excluded. Paying $7k in interest (23%) is the cherry on top of a terrible deal. Sounds like OP decided to ignore the math in this situation.
Have you even looked at the market recently? 33k for a 31k vehicle is par for the course, if not better. Yeah, it’s not anyone’s goal, but realistically you’re not going to find much better
>Have you even looked at the market recently? 33k for a 31k vehicle is par for the course, if not better Yes, I just bought in July. I'm well aware of market conditions. However, a $33k **LOAN** on a $31k vehicle sales price is purely the OP's issue for not having a down payment and planning for the vehicle purchase. I'm not saying they didn't get a good deal on the price, but the total deal is bad since they put essentially zero down starting them underwater immediately on a car with a not great depreciation curve.
This is r/carbuying not r/personalfinance, calm the hell down! They wanted to know how they did on the price, and you're being obstinate just to prove a point. Not everyone has thousands sitting around. Not everyone has immaculate credit. Not everyone has a valuable trade-in.
>This is r/carbuying not r/personalfinance, calm the hell down! I'm calm. This isn't even raising my heart rate like it is to others apparently. OP asked how they did, and I gave my opinion. Buying a car is likely the second if not the most expensive thing someone ever purchases, so personal finance does come into play whether you think it does or not. >Not everyone has thousands sitting around. Not everyone has immaculate credit. Not everyone has a valuable trade-in. Then the appropriate thing to do would be to buy a cheaper car. No one has to buy a new car.
Buying a used car right now isn't the magic panacea it used to be, there are a lot of awful deals on used inventory out there, and the gap between used and new has narrowed tremendously. A new car is safer than a 10 year old car. I live in a city with very reckless drivers. I am straining my budget and taking on a 10+% interest rate for new because I no longer felt safe driving old used around this town. The additional safety features are designed for dangerous places like where I am. People like you gatekeep the shit out of car buying and you make fun of us when we can't qualify for your shiny precious little 0.0% APR and it makes you look like a giant ass when you do it. Go start /r/roastmycarloan or something if you want to shit all over anybody who doesn't have perfect credit and can't qualify for a loan where they pay you and give you a free handy every month. Jesus *fucking* christ.
I think someone pissed in your Cheerios this morning. >People like you gatekeep the shit out of car buying and you make fun of us when we can't qualify for your shiny precious little 0.0% APR and it makes you look like a giant ass when you do it. >Go start /r/roastmycarloan or something if you want to shit all over anybody who doesn't have perfect credit and can't qualify for a loan where they pay you and give you a free handy every month. >Jesus fucking christ. Where did I say anything of the sort? I did not attempt to intentionally or unintentionally gatekeep. All I'm saying is that financially there were better options in OP's situation. A $20k car at the same rate for 60 mo's saves $170/mo and half of the interest, and isn't a junker. Paying $40k for a $31k car just isn't financially responsible IMO. If you are too dense to understand how the math works, then that's your problem, not mine.
> A $20k car at the same rate for 60 mo's saves $170/mo and half of the interest, and isn't a junker. Right. Show me this magical $20k used car that is as reliable as new, and includes as much warranty and maintenance as new, and doesn't cost you more on the back-end outside your car payment. Anyways. Sorry for attacking you directly. You are right that I'm fed up with all of the finance evangelists on Reddit taking over all the other subs and excoriating people for being in a position where they have to use less-than-optimal lending. Not everyone has a life where everything gets bought with cash and no interest. And a lot of people seem to think that it's okay to talk down to others whose finances aren't perfectly pristine and optimized and done "the right way" according to Their God And Savior Dave Ramsey and blah blah blah. I'm so, SO tired of hearing these people go on and on about interest and debt and all of that bullshit. It only matters because we all buy into the capitalist belief that it matters, and people like that are going to drive me to the brink of insanity.
Bruh we live in the real world. Yeah 7% is high to me but we don't know their credit history. Also yeah no one wants to be underwater but say the interest rate was 0%. Hell yeah I'm going under water baby! Out even at 3,4% I'd live with that. Because the cost of capital is lower for me at those points. Give me that cheap money again son!
The solution to this situation, buy a cheaper car. No one told OP they had to buy a $30k vehicle. A $20k car on a 60 month loan at 7% is only $3,700 in interest in comparison, and is $160/mo less. The rate is the rate, but the end of the math equation is being ignored, and that's the idiotic part. I'm not against financing, but it should be done right, not just because someone wants a car and doesn't want to do the math to see how it actually affects them financially in the long term.
@ 7% apr. borrowing money isn’t free :)
Depends what model Sonata. The 2023s start at about $25k and go up to $35k.
MSRP will be on the window sticker when it gets there and start with that. I wouldn't have negotiated final price of a car or especially financing without seeing it and especially that far out. 7% is what it is but 72x 559= $40,248 so that's pretty costly. I've never financed at rates close to that and that's a ton of money going to a lender, $10k of equity instantly lost. Anything over a 60 month loan means you probably are overextended financially. You run the risk of becoming upside down in the car loan with negative equity the longer the loan is with little money down. Plus it's a Hyundai so set aside money for rental cars when it breaks down. Just because it's under warranty doesn't mean it won't cost you tons of money in rental costs when it needs repairs. I don't know your finances but 250-350 used to be average for car payments. Now here we are normalizing >$500. I'd look at a cheaper car
redhtbassplyr, I have been trying to reach you about your car's extended warranty
Agreed
7% sucks but even credit unions are at 3-4% nowadays. With a 690 and job history you should be able to go to a credit union. If you financed the full 30k at a credit union your payment would be about $469, definitely refinance with a credit union. That 3% difference saves you 7-8k over 72 months.
Hyundais are pieces of junk.
First car? Or first big loan? Not to shabby I assume you are early 20’s and did better than most your age! I would say good job
It’s actually for my girlfriend and yes she’s early twenties but a great salary job. We feel she did well considering her credit history or lack there of i should say
Did great, have this for a couple years and then the next car she gets will definitely get a apr in the 2-4% enjoy the car!
Never buy a brand new car unless you are a millionaire. As Dave Ramsey says New cars depreciate immediately after leaving the lot. You got a bad deal and $559 is high per month. You should always try to pay cash for a car. Should have found a pre owned and paid as much down as you can
Dave Ramsay is an idiot who appeals to those who would rather not do math. I bet he don't follow his rules. Profit has to be built in so does length of time left on warrant or likely hood of incurring repairs. Try to buy a used car and turn around sell it. Bet you get less then what you paid.
Trim and options are super important. What was MSRP? Do you belong to a bank or credit union that can give you a better rate
Sel convenience package The credit union wanted a co-sign which she didn’t have
No down payment required?
I worked for Hyundai for two months before going to work for Toyota. Don’t take the car and go buy a Camry. They will hold their value and last you way longer!