Hey Guys,
I'm really wanting to upgrade from C6 to C7. I wanted to know if you think it would be possible to get a C7 2015-2016 convertible with financing for around $600 per month with around $1k down? My credit is just a little above average so i was going to wait till it gets to 750 credit score but i just enjoy driving so much, I dont want to wait!

 

Lot of variables, first are you trading in your C6? If so then what year, condition and miles.
We can go from there. With only 1k on hand I suggest waiting, that and getting your credit score up so the best rates are available to you.

 

Trading in the 2008 Convert, very good condition, auto 66k miles. I think i owe 17k on it, and nada says 21K clean trade in price. so if that was the case and i got 21k, then i guess i could trade in 4k

 

sounds like you have a nice ride already, I wouldnt obligate myself like what you are thinking, I waited and saved for 2.5 years and was gonna wait another but walked into a great deal and only ended up financing a little over 10k. I tell people all the time if your looking at sports cars and not putting close to 50% down or a minimum of 30% down I wouldnt do it. It sucks waiting but driving my new vette w a payment just a shade under 200 a month for 5 years was worth the wait, and ill knock that out in 18 months i just like the security of the low payment. Just my .02

 

All the car sites have auto payment calculators and you can plug in numbers and play around. Go to Carmax.com, cars.com find any similar car and click on payments and it will ask you questions like down payment, term in number of months, trade value of car if you are trading in etc and it will generate a quote. over 700 credit score is good and the rate will only change by .25 if you had a 750-800. IE: 3.50% vs 3.75%.

I ran this on cars.com for 2015 C7 Corvette 54k price with 1,000, 10,000 and 20,000 cash down or combination of cash/trade.


PS: A 2014 priced at 42k with 15k miles with 10k down gives a payment of $597....

 

IMO, finance as much as possible if you can get a 3% interest rate or less. Keep the cash invested in something that returns higher than 3%, which is not hard to do these days.

You didn't specify a loan term, but assuming 60 months, $600/mo would mean you have $36,000 in buying power. This doesn't factor in interest charges, taxes, your trade-in, downpayment etc... so your buying power could actually be less. It's easier to find the price of the car you want then figure out the payments from there.

 

Drive and enjoy your C6 until you can really afford something else.

 

I agree that rates are so low that you can borrow at almost a negligible cost. When I replace my work trucks, I use whoever offers 0/72, I don't care what brand as long as the money is free. Let me know what you do, you are out of my way, but if you are going to sell your vert, I would at least consider buying it if the price was advantageous, a dealer is very unlikely to give you a fair price and I MIGHT......

 

Does not sound like your finances are exactly where they need to be to start shopping for a C7 versus as you state a car payment.

 

If you have to ask, you can't afford it.

 

At least you are not "upside down" on your present car, but frankly a $4000 down payment is pretty paltry on a Vette.. I suggest you wait a year or so.

 

if you dig deep enough the money isn't free, being in cars you will see there are fees if you go that route, F&I providers are not in the biz to not make money. I totally agree w you, but I always run financing 3 ways to see which is best, so free, no, but certainly cheap. Im all for using others money if your set up to do so, however this also leaves the door open for over extending ones self if your not disciplined or work in a fluctuating industry, etc. Running low on down payments and high on monthly payments also raises your debt to income, which can affect Your credit, so another purchase later on in the year you may find yourself not eligible for the lower incentive on that purchase. We all tend to line up the details to see the picture we want to see, we just need to make sure we're honest w oursleves...

 

Bare minimum i would at least have 5k down. And like others have said, i'd wait a lil longer. Just for fun lets say wait til the end of the year through spring of next year. In that time:

1. save more money toward a down payment
2. continue to make payments on the current car reducing the amount you owe while increasing the amount you can get for it toward the down payment
3. pay down any other debts you may have which will increase your credit score and also decrease the amount of money leaving your account

Plus also which was already mentioned, you already have a vette so just enjoy that. Its much harder saving up for a vette when you don't currently have one and are driving something like an altima....ask me how i know

 

Pay on the current car what the $600 as if you stated you wanted as a payment on a C7. So if your current car payment is 350, then pay 600 and they will determine if you can even afford that payment.

In addition, call your insurance company and get a quote on a 2015-2016 Corvette C7 as you said you wanted. If your current insurance cost you $150 a month and a new car will cost you 250 a month then that is an extra 100. Now add that 100 to the 600 so now you would be paying 700 on your current car.

If you can't make the added amounts to the current payment on your car then as others have said, you are not ready and can't afford. You gas consumption will increase also as another added expense.

I always have told my kids, if you want to buy a house or car in installments, do a trial run and as if you already made the purchase and take the added expense and put in a 90 day, 6 month, 9 month or 12 month investment vehicle that you can't touch without penalty.

If you can't save the money as if you had already made the purchase you can't afford it! What you think you can afford and reality is often very different which is why people get into financial troubles.

PS: I paid off my daily driver early by doubling up payments when I could and once I paid it off, I paid myself the exact same payment into a savings account for my C7 and when I got 25k saved, I put it down on the car and got the payment that I wanted and I have no stress at paying the expense.

The moral of the story is you have to have a plan and work that plan to achieve whatever it is that you want!

 

Enjoy your C6 and build up some more equity in it. With only $4000 to put down, it sounds like you could end up being financially strapped and it would suck if you had to give up a dream car.
I agree with the advice of others above, at least 30% down.

 

Thanks for all the suggestions everyone. I can easily afford the $600, heck i could afford $1200, but i was "trying" to be an adult and be financially responsible.

I found one in my area almost exactly how i would want it for $40,000. I think if i got $21,000 for my trade in, so i could put $4000 down, i might be where i want. Or i could be an adult and wait till my credit score is better, so i get a better rate. my score is around 680 right now due to a diabetes related ambulance bill.

Hmm decisions decisions.

 

I don't think that's going to happen with only $1,000.00 down. I sure wouldn't take that loan at any APR......

 

Huh? Last year i took a loan on a $43000 Jeep Grand Cherokee Summit with $0 down.

 

I would suggest getting your fico score over 740. This will get you the best rate. At that point compare the interest rates on a new car vs a used car and you may see it works to your favor to get the new car. Run an amortization calculator at the used car price and interest rate vs the new car price and lower interest rate. Kerbeck offers 2.14% vs some of the other dealers placing people with 5.9% and 7.9% interest rate loans. This could amount to over $10,000 in additional interest over the course of the loan. A 680 vs 740 fico is deft more than .25% difference. Paying down debt is the quickest way to boost your score.

 

I do it enough that I am very comfy with the transactions. I figure out what I will pay, make offer via phone or email and just have them bring it to me if its a deal. If its a car like a Vette, I would probably want to see it, but other than that GOING in to the store is asking for problems. I have completely avoided F&I on my last two purchases and hope to continue the trend, that said, I took a few lumps in the early days figuring it out, so your point to the OP is well made.