how much of a downpayment?

[b3rndtt0ast]

if you dont mind me asking, how much of a downpayment would you put on a used 2000 / 2001 dodge viper? (i wont be getting one for a little over a year, year and a half, i want to do some reasearch tho), im thinkin i should put around 40 - 50% of the price of the car, and take a loan out for the rest, comment, recomendations are welcome!, thanks!

-Dan (btw, if anyone wants some photoshop work done, shoot me a pm)

 

[J DAWG]

I think if one is in the position than one should pay for the car outright. Lendors are the only one's who make $$$ of loans. It doesn't benefit the buyer one bit, unless it is 0%. However, not everyone can purchase a car outright so the downpayment is something you would have to figure out yourself. Whatever works best for you financially.

 

[Vreracing]

If I'm buying a car like a Viper, if I don't buy it outright (My wife keeps cars for ever so we always pay cash for her's) I at least put enough down on a down payment so I can sell the car easily at any point in the loan.

 

[b3rndtt0ast]

so, if its a 50k car, put around 30 - 35 down? at that point, even a wrecked viper (not totalled) could be sold to pay rest the loan off correct?

 

[RonC]

100% downpayment IMHO

 

[Scorch]

Absolute minimum of 50% and preferably 100%. For most of us Vipers are toys. If you are thinking of borrowing $45k to buy a $50k car you are not financially ready. Don't rob your future to pay for today. People do it every day but that doesn't make them fiscally responsible to themselves or their families. That's why I bought a 1994 and not a 2002 FE.

 

[Hot Rod]

Loan rates are still fairly low with top credit. I opted for 70% down and could have done 100% but, after shopping loan rates, found several that were less than my funds were earning left parked in an investment. Something to consider - but I wouldn't go under 50%.

 

[ElDiablo Viper]

I lease all cars...it is a company car.

 

[Daffy Duck Viper]

Oh, this is a great post. It's answering some questions that I have had, but was waiting to ask until it got closer to when I'll be purchasing my first Viper. Thanks, Dan. Thanks, guys, for the good information.

You must be registered for see images

You must be registered for see images

You must be registered for see images

 

[b3rndtt0ast]

hey daffy, you get that full res green viper? i formated and lost it, i hope you did :-/

 

[Viblur]

Check out peoplefirst.com for rates / loans - have used them a couple of times and the service was great.

 

[1TONY1]

I will have to disagree with some of the rich folks above. I don't see any difference in a small down payment on a $50,000 suv compared to a small down payment on a $50,000 Viper. Especially with the low interest rates. As long as its within the budget.

 

[genXgts]

I will have to disagree with some of the rich folks above.

Righto Tony, how's your plane running buddy!!

This question to me pulls in all sorts of calls, mainly you risk level for investments.

To the people that say 100% cash or near to it, more power to you, sleep well knowing that what you have in the garage can not be taken from you.

In my opinion, and it's only that, to pay what over here is near a 100K car used in cash is foolish. That 100K can do much better than a depreciating (even only slightly in a Viper's case).

Put it against a powerline on some equity in property somewhere, toss enough down that the payment doesn't cramp your style, and buy it.

Your numbers may vary, in my area 20K can get you into an investment property that will profit monthly (on an average yearly basis) to pay for the Viper payment. To tie up 5 times that amount for something that sits in the garage is not smart business sense in my book. I think it's coined the opportunity cost from my schooling days......

Being single in my late 20's my skew things a little as I have no dependants (that I am aware of!!) however.

Happy shopping, buy stocks/bonds/funds/real estate and other boring crud for your retirement years now, and have fun with the rest, life is too short for any other plan in this guy's eyes.

 

[carguy07]

I'm with Tony on this one. Right now money is so cheap it's hard to pass up. If I wanted to be in a safe position, I would put down enough that I would be able to sell for cheap and pay off the note. Most of us are home owners, put that to work for you. Use a home equity line and the payment is nothing. $40,000x4.25%/12= $142 a month as a minimum/interest only payment. Pay it down as fast as you want to from there. Look at it this way, mortgage interest is tax deductible 99% of the time, mortgage interest is effectively 3% lower than non deductible interest (rule of thumb). So, you are borrowing at an effective rate of 1.25%, that's $42 a month of effective interest. Now if inflation is say 2% a year right now you are actually making 3/4% on your loan. Yea rates can go up and if you blow off the payment they will take your home, but good lord if $142 a month puts you in foreclosure your a dumb a$$ and should lose your home. IMO, I'm a mortgage guy so it's not like I am biased at all . No spin right?

 

[Daffy Duck Viper]

hey daffy, you get that full res green viper? i formated and lost it, i hope you did :-/

Yes, I got it, Dan. Thank you so much. It's awesome. You need a copy sent back?

You must be registered for see images

You must be registered for see images

You must be registered for see images

 

[ViperJoe]

Your amount of DP can influence the rate when you shop, of course if you are talking future, everything could be who knows where and the rates could be at 10%

 

[b3rndtt0ast]

na, just make'n sure you got it daffy

-Dan

oh, btw guys, thanks for all this info your have given me so far!

 

[Matt]

Absolute minimum of 50% and preferably 100%. For most of us Vipers are toys. If you are thinking of borrowing $45k to buy a $50k car you are not financially ready. Don't rob your future to pay for today. People do it every day but that doesn't make them fiscally responsible to themselves or their families. That's why I bought a 1994 and not a 2002 FE.

I agree with this position. A Viper is an extravagent luxury. When you are in a position to buy one outright I think you are making the safest financial commitment. That being said, if you can pay 50% as a down payment you would probably be OK if times got tight and you needed to sell and not end up "upside down" on your loan.

 

[Viperfreak2]

My first: 50K down (Ferrari trade in!) and financed the rest. The second? cash. live and learn. No BS the second time either, went to Bill P. at Woodhouse.