# how much to put down?



## usafcrewchief01 (Sep 6, 2006)

I have a month left until I purchase a 2005 GTO. 

The car is being sold by a dealer in NC and it is Black on Black, 6-speed, spoiler, loaded basically..... 

It has 11,000 miles on it and they are asking 27,999 for it. I have a good friend of mine in the car dealer business and he says that with my good credit, I should be able to get the car for around 6% interest and about 385 a month. I am 19 years old, I turn 20 in November and my insurance is great as I have never even been pulled over and never even had a fender bender. I want to know how much to put down on the car and if possible what all of your #'s were when you bought yours. I am not trading a vehicle in and the car payment estimate he gave me I can definetly afford but I want to know if I should go for a better price. I also want to know if I should talk the price of the car down and to what price should I negotiate. I really appreciate the feedback, as it will only help me in this purchase. Just let me know me know what your rates and prcies were so I can decide where to start negotiating. 

Thanks alot, you all have helped me so much with this.

I should also mention that I am military as that really makes a difference.


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## CPO's GTO (Jul 1, 2006)

Cost me 32k for a 2006 @ 0.0%. Seems kinda high for a 2005 with 
11k on it my friend. Check out some of the old threads for 2004-
2006 goats that have been offered on this forum alone...Should 
give you some perspective on prices. Stay safe!


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## aintmisbehavinn (Feb 9, 2006)

Talk him down, that's too much, you can get a brand new one for less than 30K in GA.:confused


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## noz34me (Dec 15, 2005)

Come on, you can't be serious in paying $28K for a used '05!

I think that's high even if you were in FLA or CA.


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## flyer469 (May 19, 2006)

Put down as much as you can! I would not pay a dime over 24.5ish,,,
about never being pulled over,,all that will change when you buy this car! :rofl:


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## GTO JUDGE (May 14, 2005)

*IMO, put as little down as possible. This will keep your out of pocket money at a minimum. Make sure you have a "refundable clause" in the contract. This will provide you the way out if you decide to back out, or if your circumstances change.

When you are ready to take delivery of the vehicle, THEN take as much money with you as you can to put on the car. The down payment of the car is just to hold it for you. Makes no sense dumping a ton of cash on it just to hold it.

Put down amounts vary from dealer to dealer. No matter how much you put down, make sure it is a "refundable deposit." *


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## V8 GOAT (May 22, 2006)

$28k is waaaay too high for a used 05. I know that you may be looking for a black car, but check out this link below. This car has quite a few engine upgrades as well as the sexy SAP front extension.

http://cgi.ebay.com/ebaymotors/2005...oryZ7244QQssPageNameZWDVWQQrdZ1QQcmdZViewItem

If this black Goat that you are looking at is mostly stock, then I would say that you should definately be south of $25k, but not by too much. Check with your dealer, and see how negotiable he can be. If he really wants to sell it, then he will negotiate a deal that can make you both happy. Good luck in your search. :cheers


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## usafcrewchief01 (Sep 6, 2006)

*talked to the dealer.*

I talked the dealer down to 25,000 with tax,title, and registration. He says that for my age and down payment I am looking at 25,000 for 60 months at 378 a month with 5,419 down payment. My finance rate will be through USAA and they will give me under 6% guaranteed. If I put down 3,000 like I want to than my payments will be 418 a month and I make 1200 a month and I only have 140 dollars worth of bills a month. I own my lincoln and I want to keep it so the GTO is listed as a pleasure vehicle. Let me know if this is too high and what I should do. Should I take the loan out for 72 months? Insurance will be 126.00 a month for the GTO and Lincoln- Full Coverage. 

Pleae let me know what to do about this. I am going Crazy!!!!!!!!!!!!!:willy:


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## GTO JUDGE (May 14, 2005)

usafcrewchief01 said:


> I talked the dealer down to 25,000 with tax,title, and registration. He says that for my age and down payment I am looking at 25,000 for 60 months at 378 a month with 5,419 down payment. My finance rate will be through USAA and they will give me under 6% guaranteed. If I put down 3,000 like I want to than my payments will be 418 a month and I make 1200 a month and I only have 140 dollars worth of bills a month. I own my lincoln and I want to keep it so the GTO is listed as a pleasure vehicle. Let me know if this is too high and what I should do. Should I take the loan out for 72 months? Insurance will be 126.00 a month for the GTO and Lincoln- Full Coverage.
> 
> Pleae let me know what to do about this. I am going Crazy!!!!!!!!!!!!!:willy:


*Ok.... IF, and I stress IFFFFFFFFFFFF you can discipline yourself, take the loan out for as long as you can. Make the required monthly payments lower. Then pay the loan down. If you can keep the required payments low you will not be forced to pay HIGH monthly payments. Take the loan out for 72 months but pay it off as fast as you can. Make extra monthly payments. You can pay the car off faster this way but yet have lower required monthly payments in case you can't make extra payments for a month or so, or holiday time.

Kind of like paying down a mortgage. Take the loan for 72 months but pay it off in 60. As long as you can stay focused on this and discipline yourself. You will be able to pay it down and pay it off faster buy accelerating payments. Even if your loan % is higher the offset is paying it down while not being strapped with high payments. You will make out in the long run.*


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## b_a_betterperson (Feb 16, 2005)

GTOJudge makes a good point. Make the minimum commitment you can in terms of the loan -- but use those terms to your advantage by paying the loan off faster.

Overall, I'm concerned with the amount of the commitment that you're about to make. You're clearing $1200 a month. Recurring bills are $140 a month. That's cool. With this car -- you're looking at increasing your recurring bills by another $400 a month, easy. 

While that's OK on the surface, you need to be thinking one or two steps ahead -- so you can begin to build true long-term wealth for yourself instead of living from paycheck to paycheck. The only way to do that is to stick money in the bank.

As a rule of thumb, you'll need to start putting $3K a year into your IRA so it can begin gaining value tax free. In addition, because Social Security will be toast by the time you'll be old enough to collect, you'll need to stick, no joke, 17% of your PRE-TAX earnings aside for retirement. So, given those retirement needs alone -- you're looking at $250 a month just for your IRA and $300 a month for retirement (17% of $1500 gross monthly income -- before taxes). That's $550 a month right there. 

So with your current recurring bills of $140 a month and $550 a month for retirement -- you're at $690 a month. Toss the $400 a month GTO on that -- and you're basically at $1100 on a $1200 a month net income. If I were in your shoes -- I would not do that.

Sure, buying a car is really exciting. But the buzz wears off pretty fast. Slowly but surely stuffing money away isn't exciting at all -- but I'll tell you what, when you're in your 40's and already a millionaire because you've played your cards right -- there isn't a better feeling in the world.

Good luck. And thank my parents for drilling these ultra-conversative financial values into my head.


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## EEZ GOAT (Jul 9, 2005)

get a new 06 for 28,000 (hagling) but for 25000 you can do better than that. just my .02


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## brazenorangegto (Sep 11, 2006)

EEZ GOAT said:


> get a new 06 for 28,000 (hagling) but for 25000 you can do better than that. just my .02




In North and South Carolina you will be hard pressed to find a dealer who will sell you an 06 for $28,000. Most dealers here will hardly budge from window sticker and there are some who still have a $5,000 mark up. A little over $30k is about the best I've seen around here and there are some in South Carolina who posted the same thing. $25k is average for a used 05 here, you may could do a little better but it would take a lot of looking.


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## fattirewilly (May 26, 2006)

b_a_betterperson said:


> As a rule of thumb, you'll need to start putting $3K a year into your IRA so it can begin gaining value tax free. In addition, because Social Security will be toast by the time you'll be old enough to collect, you'll need to stick, no joke, 17% of your PRE-TAX earnings aside for retirement. So, given those retirement needs alone -- you're looking at $250 a month just for your IRA and $300 a month for retirement (17% of $1500 gross monthly income -- before taxes). That's $550 a month right there.
> 
> So with your current recurring bills of $140 a month and $550 a month for retirement -- you're at $690 a month. Toss the $400 a month GTO on that -- and you're basically at $1100 on a $1200 a month net income. If I were in your shoes -- I would not do that.
> 
> ...


Some really good advice here :agree


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## Go Dog Go (Sep 4, 2006)

Unless you have quite a large amount down, your payments are going to be a LOT more than that, especially depending on your term. If you say you have good credit, don't settle for anything less than 5.7% on a five year loan (a pontiac (or GM? can't remember) offer that should be good anywhere if you qualify. If you want a longer term, make them work some magic on the numbers. My dealership did an incredible job of getting good financing for my excellent credit--they got me 6.99% on a SEVEN year loan. Unheard of, and better than any rate I'd found ANYWHERE even "fake" temporary rate offers. Also, my area (seattle, WA) has some of the highest car prices around, so 27,9 on an 05 black on black (highest priced color around here), is a great deal. Some places list them for 29,9, ridiculous, I know. I still think you could find a better deal though, as other color combos go for 24-26k around here. Keep looking, and don't settle on finance rates!! Credit unions are your friend


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## Animal (Oct 19, 2006)

Just picked up a brazen orange m6 in richmond Va. for 29k Out the door (tax title etc.) brand new. I got 4.5% from NFCU over 36 mo. If you can find one I would sugest buying a new one, people buy these cars for one reason... to beat on em. Im not saying they can't handle it, but its kinda like a little brother, no one should ever beat on em unless its you.
-BTW- out of over 25 cars I have owned since I was 14 this car has been the most fun (now the 69 el camino -w- 327 3 spd. muncie I owned as a teenager is second)
If you are going to get one put down as much as you can, maybe keep some for a few imediate mods, and make the payments. Just remember the price of your gas just went up (Now you have to buy premium) and gas milage will go down if you have a heavy foot or drive to the tune of a good sounding exhaust.


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## Animal (Oct 19, 2006)

Just noticed this...
http://www.gtoforum.com/showthread.php?t=10285


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## 05GTO (Oct 6, 2004)

Animal said:


> Just noticed this...
> http://www.gtoforum.com/showthread.php?t=10285


This is a sweet deal and less than 100 miles, fly to ND and drive it home.


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## GRR_RRR (Oct 19, 2006)

usafcrewchief01 said:


> I talked the dealer down to 25,000 with tax,title, and registration. He says that for my age and down payment I am looking at 25,000 for 60 months at 378 a month with 5,419 down payment. My finance rate will be through USAA and they will give me under 6% guaranteed. If I put down 3,000 like I want to than my payments will be 418 a month and I make 1200 a month and I only have 140 dollars worth of bills a month. I own my lincoln and I want to keep it so the GTO is listed as a pleasure vehicle. Let me know if this is too high and what I should do. Should I take the loan out for 72 months? Insurance will be 126.00 a month for the GTO and Lincoln- Full Coverage.
> 
> Pleae let me know what to do about this. I am going Crazy!!!!!!!!!!!!!:willy:


Hey Chief,

Retired USAF here. Former Buff CC among other things. Don't stress about this one car. There are always more where that came from. One of our local dealers (near Langley AFB) has a new black on black 6 spd for $28,900. Check with the Seymour credit union. They may be able to get you a better rate than USAA and they certainly will be able to give you some honest advice about what you can afford. The Langley FCU is having a special 4.5% rate new car promotion with a number of local dealers here. The Seymour FCU probably has similar deals.


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## 05BAADGOAT (Jan 10, 2008)

hell go cheaper on that price at least 25k with full warrent thats what my down payment was more for bought my 05 black on black for 25k, 8000 miles one owerner, do car fax, if you get it don't wreck it we need all the goats out there


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## Tacmedic (Feb 24, 2006)

*That car should be around 20K....*

...So I would save up 20K, put that down, and drive it away. If you can't do that, you can't afford the car, period. Listen to b_a_betterperson. He speaks the truth.


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## Wing_Nut (Mar 6, 2005)

Another vote for fiscal conservatism here. At $1,200 per month, you are nowhere near being able to afford a $25,000 car and everything else life may throw at you.

You should be looking at cars half that price or plunking down half the purchase price in cash. And, two cars are ridiculous for someone with your income. Just because you can make the monthly payment does not mean you can afford the car.

Go take a deep breath and think it through.

1,200
-140 misc expenses
-400 GTO payment
-200 Gas, Oil, Wiper Fluid
-100 Insurance GTO
-100 Insurance Lincoln

Well you get the point. You haven't got much cushion left. Even if you're in the military and your food and lodging are covered, will that be true forever? Want that new IPod? Perhaps a computer? Christmas gifts for the girlfriend? Some new clothes? Xbox? New tires? Brakes? Plasma TV? Dinner and a movie with that hot girlfriend? Owww, somebody just put a dent in your GTO at the local Walmart. Damn, it's $400 to fix and your deductible is $500. Get the point?

Another point to consider is the alarming rate at which young GTO owners appear to be killing themselves in cars they don't have the brains or skill to handle.

Good luck!


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