Who Pays $700 (SEVEN HUNDRED) per month on a car??

[AutobahnSHO]

Article about Ford and GM's little 'customer bailout' plans-

http://news.yahoo.com/s/ap/20090331/ap_on_bi_ge/ford_car_payments;_ylt=AsCog9ZEWHmqZuHHJ34t0ges0NUE;_ylu=X3oDMTJpOW12amE3BGFzc2V0A2FwLzIwMDkwMzMxL2ZvcmRfY2FyX3BheW1lbnRzBGNwb3MDMgRwb3MDNwRzZWMDeW5fdG9wX3N0b3J5BHNsawNmb3JkZ210b2NvdmU-

SEVEN HUNDRED/ MONTH??!?!?!?!?!!!!

[Byteme]

$30,000 (+TTL)car financed for 48 months at 3% comes out to monthly payments of about $722.

[GoCougs]

LOTS and LOTS of people.

[SVT666]

It's extremely easy to get $700 a month payments on a new car.  All you have to do is buy a loaded mid size sedan.

[the Teuton]

This is why people by 3ers and other entry luxury cars.  You can finance a 3er for under $500 a month.  $700 is a ripoff.

[Vinsanity]

This is why people by 3ers and other entry luxury cars.  You can finance a 3er for under $500 a month.  $700 is a ripoff.

You mean lease? Financing a car purchase is all about numbers, not the car. You'll make the same payment financing a $30k BMW as a $30k Maxima, provided the same down payment, interest rate, and term.

[the Teuton]

You mean lease? Financing a car purchase is all about numbers, not the car. You'll make the same payment financing a $30k BMW as a $30k Maxima, provided the same down payment, interest rate, and term.

You might be right.  Interest rates do have a lot of an impact on this one.

[Gotta-Qik-C7]

It's extremely easy to get $700 a month payments on a new car.  All you have to do is buy a loaded mid size sedan.

Got that rite!

[AutobahnSHO]

Don't people get 5yr loans? I saw some crap on TV about a 7yr car loan the other day. (I was like, "WHAT?" and my wife was like, "Wut?")

[SVT666]

Don't people get 5yr loans? I saw some crap on TV about a 7yr car loan the other day. (I was like, "WHAT?" and my wife was like, "Wut?")

$39,000 @ 3.0% over 60 months = $700.78

[NomisR]

Well, considering most people's savings are at less than 10k, it'll be difficult to get any sort of down payment together for a 30+ k car.  And a crummy brand new minivan costs more than that.. it's ridiculous.

[MX793]

This is why people by 3ers and other entry luxury cars.  You can finance a 3er for under $500 a month.  $700 is a ripoff.

Most 3ers (or at least a very large portion) are leased, not financed/bought.  Leasing is generally cheaper than financing since
1)  No interest
2)  You're only paying on the depreciation of the car, not its entire value (or the value for which you had to take a loan to cover after trade-in and down payment).

Because Bimmers hold their value so well, monthly payments on leases are typically quite low, lower than what you'd pay to finance.

Case in point, if I had a $5000 trade and $2500 cash down payment, a $34,500 328i would cost a little over $500 a month (60 mos, 5%) to finance vs $322 a month to lease.

[dazzleman]

What makes you think there's no interest on leases?  That's not true.

[MX793]

What makes you think there's no interest on leases?  That's not true.

There is interest taken into account in the monthly payments, but you don't typically see it explicitly stated.  When pricing a vehicle, the finance option always has a box for interest rate, I've never seen that for the lease payment calculator.

[SVT666]

There is interest taken into account in the monthly payments, but you don't typically see it explicitly stated.  When pricing a vehicle, the finance option always has a box for interest rate, I've never seen that for the lease payment calculator.

What car websites have you been to?  Lease rates on the Mustang were 12% when it came out in 2005. 

[dazzleman]

There is interest taken into account in the monthly payments, but you don't typically see it explicitly stated.  When pricing a vehicle, the finance option always has a box for interest rate, I've never seen that for the lease payment calculator.

You're still paying interest.  Leasing is just an alternate way of financing.  Your payment is based on the price of the vehicle, less the down payment and the present value of the residual, spread over the lease term at the lease's finance rate.  Most people never get past the monthly payment, but all that goes into calculating it.

I'm against leasing unless you're leasing a car you could also afford to buy.  Because leasing provides a lower payment in the short run, many people use it to get into a car they couldn't afford to buy.  This ends up dooming them to a permanent car payment, since they never build any equity in the car.  I favor a shorter loan term, and then driving the car a few years without payments, over leasing, though leasing could be a good idea if you're the type of person who gets a new car every few years in any case.

[The Pirate]

Ridiculous.  My car payment on the Civic was $132, and I paid that off early anyway.  As to GM and Ford's payment assistance, it's probably too late.  I think most folks are probably waiting to see what happens to the Big 3 (2.5) before buying something from them.

Though I could probably get a crazy deal on a 5-speed Fusion right now (if I could fine one).

[Eye of the Tiger]

Ridiculous.  My car payment on the Civic was $132, and I paid that off early anyway.  As to GM and Ford's payment assistance, it's probably too late.  I think most folks are probably waiting to see what happens to the Big 3 (2.5) before buying something from them.

Though I could probably get a crazy deal on a 5-speed Fusion right now (if I could fine one).

5-speed Fusion!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!do it

[The Pirate]

5-speed Fusion!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!do it

If I could find one.  But yeah, I really like the Milan and the Fusion. 

[dazzleman]

Ford could pick up people who are pissed off about GM and Chrysler getting government (taxpayer) money.

[the Teuton]

Ford could pick up people who are pissed off about GM and Chrysler getting government (taxpayer) money.

They are.

[Eye of the Tiger]

If I could find one.  But yeah, I really like the Milan and the Fusion. 

I used to know someone who had one. I got to ride in it. Yay!

How about a 5-speed Camry? I drove a 2002 model a few days ago at work. I almost fell asleep driving it from the parking lot into the garage.

[MrH]

I wish this was all happening when I was out of school and with a job.  A new Dodge Ram (which would you could probably get with a pretty big discount) with a lifetime drivetrain warranty covered by the Feds when they go under would be awesome. :praise;

[Xer0]

My car payment is 232.  The Civic was 19k and change, we put 5000 down and had a $500 trade in (my old 95 Civic, i miss it) for it and financed the rest over 5 years @ 1.9% (wohoo and having dad co-sign!).  I imagine 700 is for people that have either a very expensive car or have a high interest rate and a low down payment.  If its the later, they probably shouldn't be getting the car.  I mean thats three times my monthly payment

[ChrisV]

I imagine 700 is for people that have either a very expensive car or have a high interest rate and a low down payment. 

As was said, $700 is for a loaded mid size sedan or minivan these days. Its not hard to get past $30k in a normal vehicle. A 3 series BMW, the new Taurus SHO, A Challenger, A Buick... I was shocked how high I could get a Mini up to, even. An Evo can get upwards of $40k... A Honda Oddessey Touring comes in at over $40k for a minivan. We haven't even hit the luxury cars yet, like the 5 or 7 series BMW, Cadillacs, Mercedes, Lexus, etc.

[Lebowski]

Most 3ers (or at least a very large portion) are leased, not financed/bought.  Leasing is generally cheaper than financing since
1)  No interest
2)  You're only paying on the depreciation of the car, not its entire value (or the value for which you had to take a loan to cover after trade-in and down payment).

Lower monthly payments does not necessarily equate to "cheaper".

And yes, you pay interest.

[Lebowski]

Lots of people have $700+/mo car payments.  Why drive something cheaper until you can afford to pay cash when you can have that BMW today ... just finance it for 60months

[AutobahnSHO]

Wow.
People make fun of my old cars and say I shoudl get something "reliable" but even figuring in a rental car now and again during breakdowns (which I DON'T do, I just bum rides or ride my bike,) I come out well under $250/month.

Right now I'm "upside down" in my Subaru- paid cash but I havne't even owned it a year yet.

[Vinsanity]

Right now I'm "upside down" in my Subaru- paid cash but I havne't even owned it a year yet.

Technically, upside down means you owe more on your car than it's worth. So in that sense, you can't be upside down on a car that you own free and clear. Congrats

If you're referring to the car being worth less than you paid for it, then that happens to 99% of the cars anyone ever buys; cash, finance, or whatever.

[Xer0]

As was said, $700 is for a loaded mid size sedan or minivan these days. Its not hard to get past $30k in a normal vehicle. A 3 series BMW, the new Taurus SHO, A Challenger, A Buick... I was shocked how high I could get a Mini up to, even. An Evo can get upwards of $40k... A Honda Oddessey Touring comes in at over $40k for a minivan. We haven't even hit the luxury cars yet, like the 5 or 7 series BMW, Cadillacs, Mercedes, Lexus, etc.

Yeah, but thats if you're financing the whole value of the car.  Don't people put any money down anymore?