How do car loans work...

how do car loans work? Currently driving the car my pops gave me but I'm 22 and want something dope like challenger rt or mustang gt/cobra. My credit is good and make ~50k a year so what is the best way to go about getting low payments

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consumer.ftc.gov/articles/0056-understanding-vehicle-financing
youtu.be/NvZJb_ydvUk
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Good credit score and income are already there, but I don't know beyond that.

Nice meme pic too.

consumer.ftc.gov/articles/0056-understanding-vehicle-financing

Consider buying used and remember insurance is going to anal you. Most loans stipulate you need full coverage and a 22 year old in a v8 challenger r/t is going to have expensive premiums

Don't finance anything.

youtu.be/NvZJb_ydvUk

If you've never financed anything chances are you won't have any credit so interest rates may be >10%

>want something dope
Heres a tip.

Don't finance anything other than a house (Mortgage).
Just stick with your dad's car and start saving

why not finance a car?

Depreciation, stupid interest rates and residual value. It's all money down the toilet.

Assuming you're OP, Say you buy your rustang GT for 50k and you drive it out the dealership, it's now worth 40k. But you're still paying 50k over 48 months at 18% per annum.

Also (assuming you're OP) You already have a car, just maintain it properly at a dealership somewhere, you need to change your thinking about money if you want to live a healthy lifestyle

this

>want something dope.

How about a superbike?

Not OP, but it sounds like the decision whether or not to finance sounds highly circumstantial

Sure, if you think you can afford the monthly payments, I'm not going to stop you, but you really have to think. "Do I need this car right now or can I buy something cheaper with cash to do the same job in 2 months time".

If you're wife is pregnant with your third child and you need to buy a minivan, you have 8 months to save for one.

If you want to look 'dope' at the mall, then stop.

Usually it is.You might get a good deal on financing because dealerships like seeing money come in consistently rather than an oasis in a desert.

Dealerships get paid out in full from the finance company

It's the finance companies that get trickle fed monthly

Unless it's a buy here pay here type of thing, but we don't go to those places right Veeky Forums?

personally, I financed $8k on a used sports car that I wanted. I'm single, in my 20's, have a very good financial situation and didn't want to wait to buy as I was driving a pile of junk and also you only get to live through your 20's once, haha. Made sense for my preferences and financial situation at least, although it would be pretty hard to justify financing a brand new mustang v8 only making $50k per year like OP. With the insurance that would probably eat a pretty big chunk of the monthly income

I got a 0.0% APR loan at age 24, but:
1) I groomed my credit for that since age 19, when I started with credit cards. My FICO score hovers around 800.
2) For most people who are just out of college, buying new is a huge waste of money, usually because insurance is a lot more expensive with full coverage, and because the vehicle rapidly depreciates (I was living at home and making bank; I got an $18,000 bonus from work and that lead me to buy my new vehicle instead of buying preowned).

First off, you won't look dope. Secondly, you cant afford any of those plus maintenance and insurance on 50k. A basic car would be better unless you have a nice sized down and payment.

This is correct. While buying new is rarely optimal from a utilitarian standpoint, financing is justifiable- having the car "now" just has to be worth the extra expense. That's the circumstantial part.

And, it will improve that credit score the jews love so much

Used ones run like 10-20k

Then he will look too poor to afford a new one.

I just want to go fast

Buy a used sportbike for $4k

If your credit is good, you've got a lot of dealers competing for business, and it's the end of the model year you can swing 0% APR through a manufacturer's finance arm.

Everyone on here always bitches about depreciation but you're getting a bumper to bumper warranty, you're getting a vehicle that has no previous owners. and you're getting the latest features.

Definitely don't always recommend new but the never buy new meme is something poorfags say

>18%
Did you bankrupt a business or something?
Even on shit credit any decent credit union will go at most 7%, people with average credit are at like 3% and actual good credit can do it for less.
Maybe you should learn to pay your bills poorfag

I WOULD LIKE TO THANK THE ANONS WHO HAVE ALREADY POSTED THE DAVE RAMSEY SHIT SO I DON'T NEED TO GO ON ANOTHER RANT ABOUT DUMBASS KIDS AND LOANS.

>he thinks 18% is as bad as it gets for people with busted credit

Only 50k.. Where do you fuckers live that this isn't a lot of money?

not him, but I live in SF
You basically can't live here unless you make almost 6 digits
it's pretty great for keeping the riffraff out

50K isn't that much money, it's livable but earning that and buying a $50,000 car doesn't make any fucking sense. OP will be making payments that are like $850-900 for just the car. He'll also have to pay for insurance which won't be that cheap since it's a $50,000 car.

Oh no I agree but that's hardly chump change for a 22 year old. Maybe I just lived in poverty for too long and it skewed my perspective, I'm making it ok on 31k but 50k would be splendid imo. Also, I live in the deep South.

>dope

Kys

At 21 I financed a used car at 3.99%. That's a negligible amount of money paid towards interest.

Have fun with your no credit score.