Why you should never negotiate the monthly payment price when buying a new car.

Say for example. You would like to buy new a vehicle for $30,000 with loan terms of 7.5% for 4 years, which is pretty standard in the industry. So what is your monthly payment? Your monthly payment would be roughly $725 and the total out of pocket cost of the vehicle would be $34,817 or $4,817 in total interest payments. This is also assuming you did not put any money down and you also did not trade in a vehicle.

So, let us now just reduce the monthly payment lower and see what happens. You say you would like a payment of $600 a month. We can easily do this by adjusting the length of the loan payback to 60 months or 5 years and your monthly payment drops to $601 but your total interest goes up $2K to a total payment of $36,068 or $6,068 just in the interest charges alone.

If you can not afford to pay the monthly payments..there is probably good reason for it….you can not afford it! Don’t be fooled by new car dealerships and their sneaky tricks.

Learn more about new car and trucks at our website and post your questions or help answer some. Ford Houston We even help with auto insurance needs like SR22 forms and bonds. Florida SR-22