Tundras live: A Bunch of Idiots And A Bunch of BS- Resume discussion group

I would, except the payment is based off the total loan. Keeping it lower keeps the payment lower

 

Why would you want to pay interest on the taxes? To me, that's like lumping your property taxes into your mortgage (assuming you don't have cash flow issues when the taxes are due).

 

Right. It would of been a wash if you put that $2,xxx down at time of purchase to cover the TTL.

 

Let me put it this way, with basic numbers.

Truck is $15k
Tax, Title, License are $2k
Zero down, loan is $15k, you pay the taxes later.
$17k total- $15k loan
Or

Truck is $15k
Tax, Title, License are $2k
dealer handles TT&L
-$2k down
$17k total- $15k loan

Am I going crazy?

 

Sure, but it's a wash to wait and do it now too.

 

Fa show

 

Correct, but dealers frequently fuckup sending a title. Not risking them not sending the tax when I can handle it myself.

 

Ok, so it's financially the same. I've never had a problem getting plates or taxes paid.

What say you @OldGuy03

 

Lemme know if this is what you were thinking...

A larger loan to cover TTR and putting cash towards principal will still have a larger payment, BUT less interest is paid over the life of the loan.

For simplicity, I'll forgo calculating any potential present value loss/gain.

Auto loan for $15,000, TTR paid w/ cash
Total interest = $1,984.13


$17,000 loan to also cover TTR, with $2,000 additional payment
Total interest = $1,728.92

 

Bought this one in state. You can pay the tax anywhere and places like cali require you to pay there.

 

We need someone smart to solve this.

Paging @RainMan_PNW

 

Depends if you put any money down, I guess.

Or What if I was going to put $2k down either way so it's the difference between a $13k truck loan and a $15k truck loan?

 

What happens if you make extra payments? Are your taxes applied to the principle or the interest?

 

That's fine. I still say we need someone smart to confirm their calculations.

 

My grandfather was a finance guy and he always said anything you can keep off of the loan helps. Even if it's a wash same money down or paying taxes and tags seperate I'd pay them seperate and keep my payment lower. And because I almost exclusively buy used cars I'm still able to buy them outright or close to out right at purchase. and still have money set aside for taxes and title. I pay a car payment to my savings account when I don't have one for this reason.

 

I said we need someone smart. Not someone who makes fancy graphs. Any idiot can doctor up numbers and charts.

 

I don't see why those three things have to be mutually exclusive!

 

The top loan is missing the $2k paid in cash for the TTR right?

 

Exactly. There are cells at the bottom of the calculators that show Additional Payment. The bottom screen shot shows the $2K being applied at the start of the loan.

It's probably info overload but I wanted to include a screen shot of the calculators and the inputs, for proof of concept.

 

TLDR. Just pay cash and be done with it.

 

No prob, I appreciate it.

So..
Adam pays $18,984.13
Zach pays $18,728.92

 

ONLY if the interest on the loan is less than the potential yield on investing that cash.