pawnstar
Senior Member
This would apply to anyone buying a 50k car that would end up costing them $60k after taxes, interest after a 10k down payment. Still not stopping people from buying trucks, and SUVs.Rates are pretty awful right now 6-7% if you have the best credit. I'm sure most people buying these cars can't afford to pay straight up cash. So if you do end up paying 50k for a Civic Type R, put a 10k down payment and finance it at 6% for 5 years you end up paying almost $6400 in interest and a total of almost 64k for the car. Let that sink in....
Example: Financing 44k for 60mo at 6% is roughly $7000 in interest
Now lets say if rates were good at 4% it would be $4600. So were talking about a $2400 difference. Yes, its a good amount. Worse case scenario, refinance when rates drop.
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