2011 Mustang 5.0 - Daily driver

Discussion in 'Motorized Vehicles' started by CanadianDude, Jul 9, 2010.

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  1. CanadianDude

    CanadianDude Notebook Deity

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    Does anyone have any recommendations on how much I should put as a downpayment? I heard 20% was the minimum to cover 1st year depreciation so you don't get upside down on the loan.

    I always thought that the bigger the downpayment the better...but I'm not sure.

    The car itself will be $37K out the door and I want to use Ford's 3 year 0% finance at my dealership. Would it be better finance all of it over 36 payments, or make a downpayment and split the rest over 36 payments?

    I have $15K sitting my car savings account, but I"m not sure if I should use all of it for the DP, or just make payments from it, or if I should continue to add money to it until I can do a 50% DP...or maybe save until I can pay for the car in full next summer...
     
  2. narsnail

    narsnail Notebook Prophet

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    Putting down the largest down payment you can to lower the payments will help in the long run, especially if something happened you couldnt account for.

    Just think, you would have it over 50% paid off.
     
  3. millermagic

    millermagic Rockin the pinktop

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    ^^ Best Advice. I plan on doing exactly that when I go to buy a vehicle. 50% downpayment. Saving until you can pay for the car would be best though.
     
  4. Levenly

    Levenly Grappling Deity

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    i would put down 12,000 and keep a little in that pot in case times become rough. it should still bring you to lower payment.

    you don't want a large monthly payment for financial safety, though, in the US you do receive a lower credit score for paying off your debts early.
     
  5. CanadianDude

    CanadianDude Notebook Deity

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    I think I'll go with the 50% DP, and split the rest over 36 months. I want the payments to be around $300, but that won't happen since it'll be a while before I can come up with the downpayment to make that happen, and I want some decent time in the summer to drive it around.
     
  6. linuxwanabe

    linuxwanabe Notebook Evangelist

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    Why does it matter if you're upside down? Actually it matter in only two circumstances:

    1. You want to trade the car before it's paid off. Obviously, this is not an issue if you plan on paying off a car.

    2. Your car is stolen or gets totaled in an accident. Keep in mind that your automobile insurance company only will pay the value of the car, so if you owe more, you're in big trouble.

    The solution is to buy "Gap Insurance" when you purchase the car. It's also called "Loan/lease payoff coverage." Basically, no matter how much you owe, the car is fully paid off in the event of a total loss.

    Actually, if the interest rate is 0%, wouldn't you want the least down payment so you could have use of your own money? Personally, I wouldn't ever make a down payment, assuming of course that you can get financed without one and can afford the payments. Of course, the payments at 36 months must be pretty shocking. If you've got the income to swing those really big payments, as well as good job stability, I'd say you're in good shape either way.


    Hey, if you want to wait and tell your kids you paid for your first Mustang with cash, go for it. It will make a much more interesting story than telling them about the joys of 0% financing.
     
  7. linuxwanabe

    linuxwanabe Notebook Evangelist

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    Here's a rhetorical question:

    Why do you want to keep the payments to $300/month? You don't need to answer that question on this forum, but you might want to consider your own priorities.

    You indicate that you've been saving, and can potentially save the entire purchase price of the car by next year. Are you savings coming out of ordinary annual income, or from a windfall. In other words, can you continue to put aside these exceptional amounts, year in, year out, or is the money coming from a one time event. Again a rhetorical question. It's just food for thought.
     
  8. CanadianDude

    CanadianDude Notebook Deity

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    Thanks for the advice. I dont NEED the payments at 300, I just want them to be because it's better than a $1000 monthly. I think the message I'm getting here is it doesn't matter how I buy the car, as long as I have a decent DP and plan to keep the car for a while.

    I didnt know about the gap insurance either, will probably get that as well.
     
  9. Thaenatos

    Thaenatos Zero Cool

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    Honestly if I were to get a new mustang I wouldnt drive it in the winter. They are one of the worst vehicles for snow travel (even with traction control and abs). Get a beater for snow driving and only drive the mustang on clean roads or youll be hating life.

    No. Putting wieght in the rear increases negative camber and in return puts less tire contact on the road. As well as how the tread grips.

    Agreed to a point. The ESP on my jeep works well, but during blizzard conditions I usually turn it off. If the traction system kicks on you arent going anywhere and those types of systems ahve been known to get peopel stuck in snow/mud conditions.

    Engine size doesnt matter much with bolt ons as the 5.0 very well may have been tuned and setup closer to its sweet spot from the factory. Granted youll get more power from other mods due to 2 extra cylinders.
     
  10. AmazingGracePlayer

    AmazingGracePlayer Notebook Deity

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    I drive a pretty muscular RWD CTS (not those everyday CTS you see mid-aged business men drive), and it does just fine in the winter. All you need is some snow (or all season) tires and a shyness from the gas pedal.
     
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