First time buyer
By - stuffeh
It doesn't reallly account for your 2k down payment because it doesn't also account for your taxes and licensing. You can mess with the numbers to figure out what you can live with. As a first time buyer, I wouldn't expect 2% apr though.
Nice app. Yeah, if you're under 10% it's around $20/month/$1,000 borrowed for 72 months. If you have challenged credit, it could be as high as $30/month at 28%.
I'm pretty sure it depends on your interest rate & length of financing. Like let's say you put 2000 down & get a loan at 2% interest for 5 years (60 months).
For example it's $17000 - $2000 = $15000
Your loan amount would be
$15000 + ($15000 *.02)
$15000 + ($300) = $15300
$15300/60 = $255 a month
This plus insurance + gas should be your monthly payment
I too am going to be a 1st time buyer & I'm pretty sure this is how it works
*Also, the longer the terms of the loan, the higher the interest because long term loans are a greater "risk" for banks*
I'm pretty sure this how it works
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered.
You may find these sections particularly useful;
* [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit.
Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
your 2000 down will cover mostly tax and fees. Your interest rate as a first time buyer will not be great.
edit: and without knowing what your taxes and fees are, we can't really say. But approximating I can see how your payment could be 350-400