looking into buying a cobalt

[elgueaga]

Hi im thinking about getting a cobalt and i have a couple questions about the cost of one per month ? I mean how much are payments payments how much is the cost of insurance each month ? If you could also add how much of a down payment was put on it ? Ive heard what you put as a down payment reflects what you pay for each month. if you could also put what type of cobalt it is so i can also get the price range any information you provide would be greatly appreciated.

[rodeo02]

I'm not sure what the current incentives are in your area, but my 2007 Cobalt LS, 4dr, automatic stickered for $14640 and when I bought it I qualified for 3 rebates totalling $2500. 14640-2500=12140. After my trade in equity, the car cost me just over $8K. I financed through a local bank for 48mo at 5% interest. My payments are just over $200/mo. Your interest rate is going to depend on your credit rating, but as a general rule of thumb, figure on $25/mo for every $1000 financed. Insurance will be cheaper on a 4dr. "Sporty" 2drs will cost more to insure. I'm old, married with little kids, so my insurance is 'relatively' cheap. I carry high deductibles as well to reduce cost. My cobalt runs me $600/yr to insure. IMO, a Cobalt is the least costly small car on the market if you are buying new. About the only thing you will get cheaper is an Aveo.

Joel

[idejsecr]

I'm a first-time buyer. My Cobalt was $11,990+tax after all the rebates. I put $8,000 down and financed the rest (about $4,500) for 24 months. My rate is 12.15% because I have no previous credit history. Payments are about $220 / month. You can calculate what your payments will be. They monthly payment is determined by the principle (the amount of money you borrow from the lien holder to pay off the car), the interest rate, and the term (how many months you finance for).

Higher principle, higher interest rate, or shorter term make your monthly payments increase. This tool from GMAC can help you determine what your payments will be: http://www.gmacfintools.com/fintools...lectVehicle.do

NEVER EVER EVER finance a car for more than 48 months. It's a bad idea for many reasons. Primarily because the car will depreciate faster than you pay it off and it'll be worth less than you owe on it.

As for insurance. I have a good driving record (no tickets or violations of any kind). I do have one accident on my record. The best rate I could find was $200 / month. My parents' insurer helped me out and found me a $90/month rate, for which I am extremely greatful.



Here's an example: Say you buy an LT at $14,000 and your down payment plus trade-in is $5,000. Assuming a 10% interest rate, you'd need to pay about $370 / month if you wanted to pay it off in 2 years. It would be $260 / month for 3 years. It would be $200 / month to pay it off in 4 years. Your insurance could be anywhere from $80 to $200 per month, depending on your driving record.

The best advice anyone can give you is PAY IT OFF as soon as possible so you don't spend a lot on interest and DON'T MISS PAYMENTS or pay late.

Oh, and if you do get a new car, get a manual... they'rer way cooler than automatic transmissions.

[rodeo02]

Originally Posted by idejsecr

..NEVER EVER EVER finance a car for more than 48 months. It's a bad idea for many reasons...

Hehehe.. that's a pretty bold statement for someone who's never financed a car before! Obviously you want to keep the loan term as short as you possibly can, but most of your bank rates for new car loans are quoted for up to 60mo. Heck, you can go 66mo and beyond these days. Sure you will pay more interest, but you do what you can swing. Another 12mo is nominal for most. Dropping a huge amount of cash (large downpayment) on the worst inventment in the world is also not the best inventment stragegy. You'll find those resources best used elsewhere as life goes on.

Joel

[-Jayson-]

its not always a bad idea to finance for longer than 48 months. Alot of people do it because they get a nice lower monthly payment. Then on months where they have extra money they pay more on their payment. But if they come up short of cash for a month, then they dont need to stress about making a high car payment. Theres no penalties with paying off a loan early, and if you do pay it off early, you are essentialy just turned a 60 month into a 48 month but you left yourself the flexability to payless when needed.

[venus]

I financed my 06 SS/SC for the longest time I could get, I think it was 60 months. I ended up paying off the car after 12 months though which is why I wanted the lower payments to begin with. I had allot more money in my pocket till I could pay it off.

[Qferu]

I bought my 2007 for 13,900. Financed at 6% for 36 months.

[Donn2390]

Originally Posted by idejsecr

NEVER EVER EVER finance a car for more than 48 months. It's a bad idea for many reasons. Primarily because the car will depreciate faster than you pay it off and it'll be worth less than you owe on it.

The real truth is, if you have to finance a car for even 48 months, you can't afford a new car..! Go buy a late model used car and put your money in the bank.
This is one reason young people get into trouble. If you want a new car, save your money..! Instant gratification is destroying the system...
All these guys preaching long term debt will never have a pot to pee in....

[lilloon]

Originally Posted by elgueaga

Hi im thinking about getting a cobalt and i have a couple questions about the cost of one per month ? I mean how much are payments payments how much is the cost of insurance each month ? If you could also add how much of a down payment was put on it ? Ive heard what you put as a down payment reflects what you pay for each month. if you could also put what type of cobalt it is so i can also get the price range any information you provide would be greatly appreciated.

i bought my 07 cobalt brand new in april 07. i put 5k down, financed it for 48 months for 1.9% and my payments are 212/mo. thats after 2k in rebates. as faar as maintainance, i so far have 39,870 miles on it. i had to put tires on it at 26k. they told me i had the most miles on those tires that theyve seen. expect that. just oil changes so far. i adjust the rear brakes every 10k miles. and rotate every oil change. great car so far.

[lilloon]

Originally Posted by Donn2390

The real truth is, if you have to finance a car for even 48 months, you can't afford a new car..! Go buy a late model used car and put your money in the bank.
This is one reason young people get into trouble. If you want a new car, save your money..! Instant gratification is destroying the system...
All these guys preaching long term debt will never have a pot to pee in....

except that you forget that long term debt also builds credit. and if you make yer parments on time, your score goes up. thereby saving you money in the long run when its time for a new car or house down the line. think long term buddy. its wise. the only problem i see with long term financing is that you may still owe after the warrenty expires and then youre stuck with fixing a car that may not even run, and you still owe on it while it sits there in the yard.