Did my buddy get a good deal?

Went with a friend to get a new truck for him today. he was pretty dead set on which truck he wanted so we just had to get the dealer to fit it in his price range. Long story short its a 2009 DCSB TRD Sport. Pretty good condition. Dealer was asking $23,400. He got the truck for $20k after some haggling with a $6500 trade in on his Scion tC. only problem i saw was his loan term was like 75 months... Good deal or no?

 

way too many variables. try ask him what his apr was? also, i think 75 is a bit too long for a car note.

 

How many miles on the truck?

 

How can you say the term is too long without knowing the rate ?

 

What if the rate is 0% or 1 or 2 % ?

 

what if it is a zero interest loan?

 

That's what I just said

 

You said 0% over X/months.

 

wut

 

hell if your buddy is happy, then its just money...

 

i dont think i ever saw a 0% loan exceed 36mos.

 

New car loans can go 72 months at 0% , seen a few advertised lately up here anyway

 

that is a phenomenal deal then, if you meet the credit profile lol.

 

Same here in Jersey.

 

My logic on the whole car finance is, don't finance longer than the warranty if it has a 36mo warranty then finance for 36mo. CYA last thing you want is a broken truck or whatever and a payment. I waited over a year for my 2013 till I got the price and terms I wanted.

 

The problem I see is he most likely will be paying it off slower then it depreciates. So if he gets in an accident towards the end of his loan the insurance won't give him enough to pay off his loan.

 

Depends on your Insurance. My coverage pays off the car if it is the same loan I financed when insurance first placed. Now that might mean I get nothing to use to purchase another car, but this one would be paid in full.

 

For an 09 kinda seems like a rip off.. I paid 26,000 out the door for mine brand new .. and if he got it for 20k with 6500 down then his loan is about 13,000 why the hell do you need a 75 month loan for such a small amount? My interest rate is ridiculous at 7.9% i financed 20,000 for 5 years and my payment is only $407... just seems weird to me not really adding up

 

the long length of the loan tells me it was a "how much can you afford per month" deals.

 

THIS SO MUCH!

Only haggle out the door price IE what you are paying TOTAL for the car ... never get set on interest or on what you can afford per month ....

and omg 13K loan for 75 months?!?! what are his payments?