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Discussion Starter · #1 ·
Anyone financed at 72 months? Is it bad to finance it for that long? I know the warranty is 4 years. I can get extended warranties online. 72 months would make it so much easier for me to get the GTI. What do you guys recommend?
 

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Anyone who says financing for 72 months is bad also needs to realize that financing for any term is just as bad. I say if 72 is what you need to get the car, go for it. If I could have paid cash for my GTI, I certainly would have. Failing that, I'm financed for 72 months. One quick sanity check for you though: just compare the 72-month to the 60-month by multiplying the payment for each plan by the number of months in the term. Look at the two totals side-by-side and see the difference, THEN ask yourself if the lower monthly payment is worth that much extra in the long run. When I was negotiating at the dealership, I paid no attention to the monthly payment (they'll push to get you financed for 8 years if that's what it'll take to get you into the car for the $500 payment you want). Every time the salesman threw a payment at me, I figured the total of the payments. Now I'm gonna pay close to $50K for my $25K car, unless I pay off early to avoid excess interest. Yay me! (but it's worth every penny)
 

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Discussion Starter · #3 ·
BlueFrogPosse said:
Anyone who says financing for 72 months is bad also needs to realize that financing for any term is just as bad. I say if 72 is what you need to get the car, go for it. If I could have paid cash for my GTI, I certainly would have. Failing that, I'm financed for 72 months. One quick sanity check for you though: just compare the 72-month to the 60-month by multiplying the payment for each plan by the number of months in the term. Look at the two totals side-by-side and see the difference, THEN ask yourself if the lower monthly payment is worth that much extra in the long run. When I was negotiating at the dealership, I paid no attention to the monthly payment (they'll push to get you financed for 8 years if that's what it'll take to get you into the car for the $500 payment you want). Every time the salesman threw a payment at me, I figured the total of the payments. Now I'm gonna pay close to $50K for my $25K car, unless I pay off early to avoid excess interest. Yay me! (but it's worth every penny)
How are you paid 25k more for your car? I don't get it. Anyways my credit score is 720. You think I can get a 5.99 or less? 60 months would 377.30 72 is 323.43.
 

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DuJour said:
How are you paid 25k more for your car? I don't get it. Anyways my credit score is 720. You think I can get a 5.99 or less? 60 months would 377.30 72 is 323.43.
Interest. Fees. Extended Warranty. Mostly interest though. Oh yeah, I forgot to mention a couple grand in negative equity on my trade too. I'm at 5.9% and you've got about a 30 point advantage on me with your credit score. And mine's financed through VW so you should be able to get that at most.
 

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Discussion Starter · #5 ·
BlueFrogPosse said:
DuJour said:
How are you paid 25k more for your car? I don't get it. Anyways my credit score is 720. You think I can get a 5.99 or less? 60 months would 377.30 72 is 323.43.
Interest. Fees. Extended Warranty. Mostly interest though. Oh yeah, I forgot to mention a couple grand in negative equity on my trade too. I'm at 5.9% and you've got about a 30 point advantage on me with your credit score. And mine's financed through VW so you should be able to get that at most.
I think I will go for the PkG 1 DSG. 72 months at 320 a month. I called my insurance and it will be $230 a month. So 550 a month total for the car. Whaddya guys think? Should I go for it?!?
 

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i am with progressive, clean driving record, paying 145 a month... look into it. You may be able to at least find cheaper insurance. My payments are 380 a month on the car. it pays to shop around for insurance.. Geico wanted to run me 225 a month!!!
 

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Discussion Starter · #7 ·
Bcruzin said:
i am with progressive, clean driving record, paying 145 a month... look into it. You may be able to at least find cheaper insurance. My payments are 380 a month on the car. it pays to shop around for insurance.. Geico wanted to run me 225 a month!!!
No progressive insurance or geico in Massachusetts. They don't allow outside competition.
 

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Something to keep in mind too is that financing over 72 months you could potentially end up owing more on the car than it's worth, say 5 years from now. Doubtful though, cause VWs have a good resale value.

Any car loan is bad debt. If you need to finance over 72 months to afford the car, then you can't afford it. If you're paying anything over 5% interest you should make it a priority to pay it off as quickly as you can, unless of course you have higher interest debt outstanding. This is pure consumer debt on a depreciating asset. A mortgage on a house on the other hand would be good debt.
 

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IMO, if you have to finance for 72 months, you cannot afford the car. The last situation you want to find yourself in is being in a car with no warranty that you owe more on that it is worth.
 

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Bcruzin said:
i am with progressive, clean driving record, paying 145 a month... look into it. You may be able to at least find cheaper insurance. My payments are 380 a month on the car. it pays to shop around for insurance.. Geico wanted to run me 225 a month!!!
I was with Arbella (boston) and switched to liberty mutual. For one year with arbella I was paying $1880.00 , when I switched to Liberty Mutual it went down to $1214.00 a year. And that's with a horrible driving record. I think I'm a step 21 in MA.

If anyone in here is in MA and has Arbella for an insurance company do yourself a favor and change insurance fast.
 

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As for the financing, if I didn't have to pay interest I would drag it out forever. In other words, the lower your interest rate, the longer you should finance. Take advantage it. However, if you have an 8% APR, I would not go over 60 months.
 

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I leased mine for 48 months and writing off every penny of it for business purposes. (IRS agents stop reading).

Got a great deal and the dealership paid my first 4 payments just to make me say yes.

A ploy you should do... I learned this selling cars myself back in the day.

Go into a dealership on the last or second last day of the month and just be a hardass in negotiations. Managers often have to hit their goals for the month in car sales in order to get their bonuses... Therefore, you'll have them throwing rediculous deals at you... such as 310 a month for 48 months with 0 Down and them paying my first 4 payments. I loved it when the financing guy said I was a lucky SOB. I took it as a great compliment.

Anyhow, hope this helps.

P.S. If the dealership isn't bending over backwards then they've probably already hit their goal... pack your things and head to the one down the street. You'll find one that's hurting for sales.
 

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Hey jumpsuit joe, great to see you back. This is absolutely, the best advise to purchase a car. Trust me, Joe knows what he is talking about. BTW, say hi to val for me.
ff
 

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I'll have to remember that the next time I'm buying a car. Thanks for the info.

I bought mine on the first week of the month (in January, no less) but still got a similar comment from the financing agent. Of course, it took me about 10 hours of negotiating to get down to the final price. I had a history of paying too much for cars, so we were proud of how hardassed we were that day. It helped that the salesmen couldn't find the exact color and options I wanted in the state, but they had one close on the lot. I kept telling them to check more dealerships and further away, and they kept begging me to take the one they had.

Overall, a long day of carbuying but it all paid off in the end.
 

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DuJour said:
BlueFrogPosse said:
DuJour said:
How are you paid 25k more for your car? I don't get it. Anyways my credit score is 720. You think I can get a 5.99 or less? 60 months would 377.30 72 is 323.43.
Interest. Fees. Extended Warranty. Mostly interest though. Oh yeah, I forgot to mention a couple grand in negative equity on my trade too. I'm at 5.9% and you've got about a 30 point advantage on me with your credit score. And mine's financed through VW so you should be able to get that at most.
I think I will go for the PkG 1 DSG. 72 months at 320 a month. I called my insurance and it will be $230 a month. So 550 a month total for the car. Whaddya guys think? Should I go for it?!?
whats ur down payment? i put 10k down for a pkg1 dsg with 18's and im paying 300 for 60 months
 
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