PHalanKS
Legendary Member
Also something strange: when they did the finance check, the interest rate I was getting with a 40% balloon was 11.3%.
I said, "no Balloon, I'll be putting a deposit of X" (around 25% of the price)
Quote comes back and the interest rate goes up to 11.5%
The fuq?
So I say, okay, 10% deposit no balloon, interest is now at 11%, so prime + 0.25.
Banks?!
Weird, but say you do your income and expenses then you have 10k left over for a car, and if you do 25% deposit/no balloon/24 months your monthly payment is 9k then 9k/10k = 90% so it's kinda borderline so you get shafted with a higher rate, vs doing 10% deposit/50% balloon/72 months and the monthly payment is only 3k/10k then you're super amazing and you get a great rate.
Weird but that's basically the logic, so play around a bit and then end up doing a deal on 72 months but schedule a payment or something that would equal what you know you really should be paying.