Used car question

[Carloscda]

I was looking at a 07 Accord that is 17k.

I have to put 2k down and they said payments would be $470mo.
I needed a co signer as well.

Now what I want to do is in about 2mos put another 6k on the car, how will that effect the rest of the loan? Should I put half towards the principle & the other towards the payments or all towards the principle?

[StartingOver08]

Go the www.bankrate.com calculator and input various amounts in the auto calculator to determine your best course of action. If you check out the amortization schedule you will see instantly how much interest you pay over the term of the loan in any of the scenarios you choose.

If you purchase a vehicle and finance $15k with your payment at $470/mth and two months later you put down more money, it only shortens the time remaining on the note but does not reduce the payment. You will pay less in interest payments (not interest rate) overall because you paid down the principal in a lump sum.

Why don't you wait until you have the additional funds and then buy a car? You will get a better rate usually with more down - or with the added funds you could buy something cash outright and not have payments.

[DebtHater]

I would forget about the 2007 Accord for 17K and wait two months and get a older something for the 8K in cash you'll have.

There are plenty of reliable cars floating around for 8K and you won't have payments hanging over your head. You also won't need a co-signer.

[blessed]

I agree with debthater. I'd pay cash for a car and not have a payment!

[mom2three09]

Either pay cash or find something for around $10K. We just purchased a 2007 Mazda6 with 36K miles on it for $10K ... so $17K for the same year of vehicle seems like too much $$ (even if it is a Honda).