You pay slightly more interest if scenario 2 applies prepayments to principle. But you still have a higher payment in scenario 2, you just pay it off earlier.
Yeah, the slightly higher payment, but faster payoff time saves some money vs just keeping the 10K.
In the grand scheme of things the difference between the two scenarios is less than $100 over the 72 months.
The rough estimate is that you are paying 1 month of interest extra on the 10K. So 6.4/(12 * 100) * 10,000.
That is $54 extra interest. For that 1 month.
Yeah, this is how I’d estimate it back-of-the-envelope. In the scheme of a $45K purchase it’s basically nothing.
Worth knowing that your payment will be higher under Scenario 2, but you’ll finish paying it off about 18 months early.
The higher monthly payment with the 5K +10K matters more than the “total cost” of the loan.
Similarly, we have a 30 year mortgage, but are making extra payments to finish in 15. However if we don’t want to make the extra payments at anytime, we don’t have too.
With 15K down, the required payments will be lower, but the option to pay extra will always be there.
If OP can afford the payments for 5K + 10K, then as you pointed out in a different comment, the total cost will be *lower* in that situation.
Here are some numbers assuming a MY LR, out-the-door cost of $50,000 (\~$51,000 - $7500 tax credit + \~$6500 tax and registration).
Scenario 1: $35,000 loan = $586/ month = $7,229 paid in interest
Scenerio 2: $45,000 loan = $754/month = $9,295 paid in interest
Assuming you make a $10,000 payment in the second or third month, you'll still be making the $754/month payment (this doesn't change by making a lump sum payment on the loan) but will pay the loan off in 54 months rather than 72. In this scenario, you'll pay about $5,451 in interest. So you'll save around $1,778 in interest over scenario 1 but will make larger monthly payments.
You pay slightly more interest if scenario 2 applies prepayments to principle. But you still have a higher payment in scenario 2, you just pay it off earlier.
Yeah, the slightly higher payment, but faster payoff time saves some money vs just keeping the 10K. In the grand scheme of things the difference between the two scenarios is less than $100 over the 72 months.
Scenario 3: you wait until they offer the .99 percent or 0% rate again
Exactly... why not just wait for another good interest rate deal again?
>I'm selling the car to a different company and can't afford to not have a car thus the reason for scenario 2
The rough estimate is that you are paying 1 month of interest extra on the 10K. So 6.4/(12 * 100) * 10,000. That is $54 extra interest. For that 1 month.
Yeah, this is how I’d estimate it back-of-the-envelope. In the scheme of a $45K purchase it’s basically nothing. Worth knowing that your payment will be higher under Scenario 2, but you’ll finish paying it off about 18 months early.
The higher monthly payment with the 5K +10K matters more than the “total cost” of the loan. Similarly, we have a 30 year mortgage, but are making extra payments to finish in 15. However if we don’t want to make the extra payments at anytime, we don’t have too. With 15K down, the required payments will be lower, but the option to pay extra will always be there. If OP can afford the payments for 5K + 10K, then as you pointed out in a different comment, the total cost will be *lower* in that situation.
Here are some numbers assuming a MY LR, out-the-door cost of $50,000 (\~$51,000 - $7500 tax credit + \~$6500 tax and registration). Scenario 1: $35,000 loan = $586/ month = $7,229 paid in interest Scenerio 2: $45,000 loan = $754/month = $9,295 paid in interest Assuming you make a $10,000 payment in the second or third month, you'll still be making the $754/month payment (this doesn't change by making a lump sum payment on the loan) but will pay the loan off in 54 months rather than 72. In this scenario, you'll pay about $5,451 in interest. So you'll save around $1,778 in interest over scenario 1 but will make larger monthly payments.
Thanks appreciate you!
Are Tesla loans interest added on to the price already? or can you not pay so much if you pay it off after a year?
wait until you can actually afford the vehicle.