Just want to point out to you guys who put money down on a 0% loan, you basically lent money to Mitsu for free lol. Always always finance as much as possible when you have a 0% loan...let that down payment sit in the account and spread it out over the length of the loan rather than smack it down up front....

May only make a small nominal difference, but that mentality is what drives people to build serious wealth....

 

thank you very much! A lot of people don't seem to get that lol

 

I didn't say it was a good idea... but it is a way to get the payment down and be able to keep the car. I certainly can't get 28,4 for the car right now, even if the mileage is low.

 

bank one has 4.75% for 72 months for refinance.... would drop the payment by 63.00

 

Putting a down payment is not lending money to mitsubishi. A down payment makes you have a shorter loan, plus my payments would have been 650 per month compared to 500 which I put 10G's down. That's a 150 dollar difference per month. I'm not sticking with a loan for 6+ years. The money is not going to mitsubishi for free, it's paying the car off early. Plus if you put money down, you're going to pay less taxes up front on the car's price. My state's taxes is 6.5%. Take that times 30,000 compared to 40,000 and you're saving $650 up front.

 

Dude, you have missed the point. Here is an exaggeration to help drive the point home:

Lets say you needed a car that cost $30K but could borrow up to a million dollars @ 0%. The most advantageous position would be to buy the car and put the cash in the bank and earn 3% on it (or more) for 5 years. Of course your payments would be HUUUUGGGEEEE (16666.7/month), but you would continue to earn interest as your balance declines. After 5 years you would have paid off the loan and your cash balance would be $85K!!!

Hey, some people like their monthly payment at a certain amount because it helps them budget. That's fine for them. It's just not the most financially advantageous thing to do.

 

Also, maybe your state is different, but in most states you pay Sales Tax on the amount of the selling price. Go look at your contract.

That would be like saying if I put $30K down in cash I would have to pay sales tax!

And finally, putting more money down does not shorten the life of the loan, that term (number of payback periods) for the 0% deal is 60 months regardless of how much you put down. You CAN pay it off early, but if you make the regular monthly payment, it will still take you 60 months.