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Take my loan of $89k. A 60month loan @ 2.2% had a monthly payment of $1,568 and a total interest of $5,066.

If I were to take the 72month loan @ 2.7% the total payment would be $1,340. So add in an extra payment of $228 to make the monthly payment the same. You pay it off in 61 months, but your total interest is $ 6,325 which is more.

If I were to take the 72month loan @ 2.7% and add an extra payment so I paid it off in the same 60 months I would have to add $247 so $20 more a month. Your total interest is $ 6,243 which is more.

Now say I could get the same 2.2% for the 72 month loan my payment would be $1,321. Add in an extra $247 to make the monthly payment the same. You pay it off in 60 months with a total interest of $5,063. A delta of only $3 on over $5k isn't even worth noting.

The math doesn't support the idea of taking a longer loan to then put additional money per month on it to save interest. Now for the argument is made that it gives you the flexibility to either add the additional payment or resort to the lower payment based on monthly finances, that argument does have merit.
I take longer payments or lease in the event I want to flip and the market justifies making a profit. Options of getting out quick in the event I get bored and want something else…I’m my case it’s been 6 months over the last few years.
 

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^^^^This right here… if you want the flexibility I get it but you end up paying more interest if you take the loan out for longer and still throw more money at it. Better off taking shorter loan. I can not justify a payment over $800 per month. If I can’t put down enough to get it below that then I can’t afford the vehicle that is my thoughts and our payment will be around mid 600s on the DDHC and I don’t even like that LOL.
 

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^^^^This right here… if you want the flexibility I get it but you end up paying more interest if you take the loan out for longer and still throw more money at it. Better off taking shorter loan. I can not justify a payment over $800 per month. If I can’t put down enough to get it below that then I can’t afford the vehicle that is my thoughts and our payment will be around mid 600s on the DDHC and I don’t even like that LOL.
I agree with you but in order to get the payment to $600 that’s a huge chunk of cash to put down. I like being a bit more liquid and put that money to work for me.
 

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I agree with you but in order to get the payment to $600 that’s a huge chunk of cash to put down. I like being a bit more liquid and put that money to work for me.
With my trade and putting 20 down I will be right there. This will be first new vehicle my wife and I have bought in 10 years. I always buy used and only take out loans for 10-15k and then pay vehicles off so her current car is paid for.
 

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With my trade and putting 20 down I will be right there. This will be first new vehicle my wife and I have bought in 10 years. I always buy used and only take out loans for 10-15k and then pay vehicles off so her current car is paid for.
Makes total sense I used to do the same up until about 10 years ago when I started lease hacking and only buying vehicles that hold value..mostly hellcat or SRT variants for me.
Are you buying a DDHC or SRT? With 20k down wouldn’t you still be in the 1k payment range?
 

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The math doesn't support the idea of taking a longer loan to then put additional money per month on it to save interest. Now for the argument is made that it gives you the flexibility to either add the additional payment or resort to the lower payment based on monthly finances, that argument does have merit.
Your comp only considers paying off the longer loan at the shorter loan term. That's not the only option available. But essentially you are correct, what the longer loan term and lower monthly payments allow is flexibility. It's not about reducing actual costs of the loan, it's about reducing the opportunity costs of the loan.
 

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Makes total sense I used to do the same up until about 10 years ago when I started lease hacking and only buying vehicles that hold value..mostly hellcat or SRT variants for me.
Are you buying a DDHC or SRT? With 20k down wouldn’t you still be in the 1k payment range?
We are trading in my wife’s current car that is booking between 30-35k depending on my negotiating skills 😀 we will see where we land with that. It is almost immaculate for a 2014 Escalade.
 

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We are trading in my wife’s current car that is booking between 30-35k depending on my negotiating skills 😀 we will see where we land with that. It is almost immaculate for a 2014 Escalade.
Oh that makes sense.. check around on vroom, carvana, Carmax as well. The tax savings should be a few grand as well but Carmax has been going crazy with offers.
 

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So his and hers matching??? Who got the one with the red interior?
Not exactly.

You know how they've discontinued your favorite pair of jeans when it's time to replace them? This is that. :)

I'm mothballing the violet one and resurrecting her in 10/15 years to daily drive when all new cars available to me are electric.
 
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