I fell in love with an 07 Scion. The dealer said he could give it to me 15500 (which is even better than deals iI found online for this car) out the door, but he said that I may have to increase my offer of a down payment form 1000 to 1500. Does that monet go toward the loan? Or is the dealership making another 00 off of me????
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{ 6 comments… read them below or add one }
Not in the way you may think. It reduces the amount of the loan. Some banks/finance companies have "ear marks" that they use to gage rates and terms. By increasing the down payment you are reducing the amount they are asking the bank to loan.
When they say down payment, that pays for the car itself, before the loan even begins.
The down payment goes toward the loan and the loan costs. When you make the deal, you should get a contract listing the loan amount plus the costs. In reality it goes to the loan itself. Which includes the loan costs. The down payment is considered as good faith to you buying the car.
Just last week, the minimum down payment need to finance a car went up. As for the down payment, the extra money makes the loan smaller by the same amount.
What you use as a down payment will go towards your loan. Just make sure that "out the door" really applies and that $1500 should go toward your loan and not other fees. Good luck.
this is a 07 Scion with 12.000 miles that sold for FIVE GRAND LESS.
That’s a whole third off the price.
Not sure if the link works, it’s off ebay
http://cgi.ebay.com/ebaymotors/Scion-tC-07-Scion-TC-2007-Scion-TC-tinted-windows-auto-coupe-salvage_W0QQitemZ170270786820QQcmdZViewItem?hash=item170270786820&_trkparms=39%3A1%7C65%3A3%7C240%3A1308&_trksid=p4506.c0.m245
since it took me 3 mins to find it, I believe a "good deal" would be even cheaper than this, perhaps 7 grand for cash. That is if you are smart.
The way you are doing it, it’ll take you five years and 20 grand to pay for something that in the end will be worth nothing.
And not counting the big money you’ll spend to comprehensively insure the car. (another 15 grand to add to the 5 years projection?)
In the end you’ll pay 35 grand where you could pay 7 grand + some pittance towards a LIABILITY only insurance. And in 3 years, throw it away and GET ANOTHER ONE!!!!