How much would my car payment be? first car buyer!?

(2011-04-05 14:30:18)

1. Collin Says: im 14, and am a legal driver in south dakota, im looking at buying my first car its a 92 honda accord lx, its 2500, i have 500 down, i want to pay it off in under 3 years, i know my interest rates may be high because i have no credit and i may need a co-signer

2. Dave B. Says: With the remaining $2000, you'll be looking at monthly payments of $72.30 per month, assuming an 18% interest rate. That rate probably sounds a bit high, but is probably likely given your credit history and the low value of the vehicle.

It is highly unlikely that a bank will finance this car for you. You may be able to work out a deal with the owner, or get dealer financing. With such a low principal, though, the interest rate really isn't all that crucial. To give you an idea, a 25% rate will bring your payments up to $79.52--not a big difference, is it? Whatever the case, make sure you get financing that doesn't penalize you for early payoff of the loan. With such low payments, you'd be smart to pay it off early if you can.

Now, a short lecture: Be responsible. Understand that there's a chance that this car will die before you're finished paying on it, and the repairs will almost certainly be more than the car is worth. A lot of young people take this as a sign that they should just buy a new vehicle instead--and then let the old one get repo'ed. That's a great way to screw yourself for a long time. Hopefully you're smarter than that, but people take it personally when bad things happen to them, and that can affect your judgement. Just trust me that if you damage your credit now, you'll pay three times the cost of that vehicle in higher interest rates and deposits on down the road. Anyway, 'nuff said. Good luck with your vehicle!

3. Daddy Says: You're not going to get the car, not at 14. Maybe if someone else signs for it and you pay them off privately, but no institute will finance a car for you. You're too young. Also, you will CRAP in the interest department, and your insurance will be a *****.

4. alfredb1979 Says: I'll give you credit for the minimum legal driving age in SoDak being 14, because it is...but, you're STILL a minor and you can't sign a contract...so, no cosigner, either.

So, your mom and pops first payment on that used up Accord will probably be $2500.

5. Stupid Flanders Says: You can't even own a car at 14, let alone finance one. Minors can't enter into contracts.
And how can you legally drive a car at 14? Even on ND, you can't get a license at 14.