talk to me about APR interest/financing

[mattness]

does anyone know how the math is figured on APR interest/financing..

i got a car loan for roughly 15,000
at 3.95% interest (so for the sake of math we'll say 4%)
my interest varies monthly between 28ish to 35ish depending on how many days are in the month

so well say 30 dollars (times) 60 payments.. equals

1800 dollars total in interest.

however 15,000 divided by 1800 in interest wquals roughly 8%...

wtf? is my math wrong??

im really trying to figure out if buying a

used 09 max - 15-16k at 10% interest

is cheaper or more expensive than

brand new 2010 - 18-19k at 3.95% interest

if you know how interest works id appreciate your input!

 

[mattness]

i mean assuming a new max is same interest at my car.. the payment would be

250ish
with
35-40 in interest

so 300 bucks a month

whereas used
id be paying

220ish
but
2.5 times the interest.. so 100ish?

so id be paying 320 a month???


so im thinking itd be cheaper for me to buy new!!!!!!!!!!!!!!!!!1

what world r we living in!!!!!!

a used max would have to be 13-14k for me to even consider it if my math is right

also if new, i know whats wrong with it, it has 0 miles, and warranty...

 

[headknocker]

sound like you r verry close to talking yourself into a 2010, wish i could help u out with the math truth is i cant;:confused2: but i will say if you can afford something in the $300 to$350 range go new. what the hell you only live once. MHO!!!!:eusa_dance:

 

[mattness]

used ones are starting to pop up for 14k again so im prolly leaning on that. i have to get a few things lined up first before i can do anything, so prolly next season some time. im really in no rush, id like to save up some cash and sell my max for a chunk of the downpayment. i really dont wanna have to do a loan over 10k. debt gets out of control fast. a 10k loan would be a tuck under 200/mnth

300 payment
100/mnth insurance
100/mnth gas
100/mnth tires,maintenance, surprises

very expensive cost of ownership. realistically when i ride ill use 25 bucks a day in gas.. thats PER DAY, but with rainy days we'll average it out to 10/day

realistically thats 300/mnth

very expensive hobby. harsh. i wonder how many people didnt think about this before they bought it, and were forced to sell early.

insurance 1200/year
bike payments 3600
tires 600
maintenance 300
repairs 300

so roughly 6000 per year if u actually ride the darn thing.


id really like a 200-230 ish payment, and 75ish insurance.

i can get a bking new or almost new for 6-7kish.. what the hell am i thinking slap me

 

[mattness]

sound like you r verry close to talking yourself into a 2010, wish i could help u out with the math truth is i cant;:confused2: but i will say if you can afford something in the $300 to$350 range go new. what the hell you only live once. MHO!!!!:eusa_dance:

that is exactly what i tell myself when i start to think its a bad idea.

i dont wanna turn around and be 60 years old and regret it. i couldnt imagine how depressed id be if i looked back on my life and never had one of these when they were brand new. having a vmax back in 85 had to be completely bad ass..

besides if i couldnt handle the payment one of you guys would help me out and take it off my hands for sure. if i lose my job i could prolly "rent" it out monthly LOLOL

 

[naughtyG]

IMHO, loans are bad news unless you're planning on renewing the vehicle on a yearly basis.

For a long term purchase, sure it looks like it makes it 'affordable', but in the long run you end up paying 2 to 3x the value. It's not about the math. It's about the small print and how you WILL get raped by any loan company.

The only loan I'll ever consider is a 0% one, bike manufacturers offer those sometimes on leftover models they can't shift enough of.

Just my 2 pennies of course, but I'd always rather save up and then buy what I can afford.

The '09s are only getting cheaper as time goes by, and maybe Yamaha/Star will eventually realize that grossly overpricing IS hurting sales numbers big time. I believe the same is true for the new 1200 Super T?n?r? - it's not gonna sell well because it's ridiculously overpriced.

 

[bagherra]

IMHO, loans are bad news unless you're planning on renewing the vehicle on a yearly basis.

For a long term purchase, sure it looks like it makes it 'affordable', but in the long run you end up paying 2 to 3x the value. It's not about the math. It's about the small print and how you WILL get raped by any loan company.

The only loan I'll ever consider is a 0% one, bike manufacturers offer those sometimes on leftover models they can't shift enough of.

Just my 2 pennies of course, but I'd always rather save up and then buy what I can afford.

The '09s are only getting cheaper as time goes by, and maybe Yamaha/Star will eventually realize that grossly overpricing IS hurting sales numbers big time. I believe the same is true for the new 1200 Super T?n?r? - it's not gonna sell well because it's ridiculously overpriced.

Some really good advice here. Something else to consider is what if something changes in your financial situation to where an extra $300 is no longer tenable. That's how a lot of people got into dire straights during the recession (when they lost their jobs and had loans to pay). I've seen quite a few low used Vmaxs out there with less than 500 miles on them. That was either buyer's remorse or they realized that they could not afford the bike.

I'd go used if you go at all. You can get a slightly used Gen 2 for $5000 off MSRP. That's substantial.

 

[Mod Monkey]

used ones are starting to pop up for 14k again so im prolly leaning on that. i have to get a few things lined up first before i can do anything, so prolly next season some time. im really in no rush, id like to save up some cash and sell my max for a chunk of the downpayment. i really dont wanna have to do a loan over 10k. debt gets out of control fast. a 10k loan would be a tuck under 200/mnth

300 payment
100/mnth insurance
100/mnth gas
100/mnth tires,maintenance, surprises

very expensive cost of ownership. realistically when i ride ill use 25 bucks a day in gas.. thats PER DAY, but with rainy days we'll average it out to 10/day

realistically thats 300/mnth

very expensive hobby. harsh. i wonder how many people didnt think about this before they bought it, and were forced to sell early.

insurance 1200/year
bike payments 3600
tires 600
maintenance 300
repairs 300

so roughly 6000 per year if u actually ride the darn thing.


id really like a 200-230 ish payment, and 75ish insurance.

i can get a bking new or almost new for 6-7kish.. what the hell am i thinking slap me

You seem to have forgotten one thing......... Mod Monkey allowance!! Remember you have to keep us happy toounk:

 

[gamorg02]

correct me if i'm wrong but interest on loans is compounded annually. so u pay 4% of what you owe each year. so you pay 4% on 15k the first year, then whatever amount of the principal (say 12k) you owe left you pay 4% that year. thats why your interest amt goes down and princpal amount goes up (that you are paying per month as time goes on)

 

[Bill Seward]

Having a VMax in 1985 WAS completely badass!
I'm 60, and glad I bought the bike back then.

If you got the money - just do it. You won't regret it!

 

[Bon-86]

This is the best finance calculator that I've found.
http://www.money-zine.com/Calculators/Auto-Loan-Calculators/Car-Loan-Comparison-Calculator/
You can simply input your numbers and see your payments AND SEE THE TOTAL INTEREST PAID. Very cool.

If you stretch the loan out to 60 months the lower interest rate becomes attractive. If you shorten the loan period then the used bike, higher interest, looks better.

Good luck with your decision.

 

[jbretthorton]

I almost closed a deal on a 800 mile 09 but the deal Yamaha made me on a 0 mile warrenty 2010 made it very tempting. It cost me a little bit more than the used bike but a no braner for me as it was new and had a factory warrenty!

 

[Rockatansky]

The other possibility would be a home equity if thats in the cards for you. I have seen rates extremly low within the last 2 months. My thought would be that you could best 10% quite easily if you go that route. A 10% rate is not uncommon when buying used but is a high rate if you finance for more than 2 years. I would shop around as much as possible. Banks are still way down on business due to the new regulations so if you have solid credit shop it a bit more. Between the 2 options you laid out the new bike sounds alot better to me.

FYI, for the last couple years I have seen great prices on bikes at the tail end of the season. It is my understanding that the Max's are not exactly flying out the door with the 18K pricetag. Late fall-early winter seems like a winner for the timming.

 

[Rand-5107]

Out here they want $19,500 for a 2010.