How long did you finance for?

This is the method that Toyota instructed me to use at both the dealer and the Southeast Finance Center in Florida. They both told me it would save some interest dollars but not a whole lot at 1.9%. In fact the website won't permit me to pay more than the payment amount. I tried on payment #1 and it was not allowed. If I send a check for $1000 it reduces the balance by a thousand dollars. The interest calculating usually goes over my head mathematically. It does appear they make the calculation once a month after 30 days have elapsed.

 

That's weird it won't let you do an additional payment. I am able to schedule my regular payment, then schedule an additional payment.

And the interest is exactly the same. You can create a spreadsheet in Excel to show a normal payment with additional payments towards the total balance versus regular payments and the same amount going towards principal only. They will come out the same.

 

I could probably do that, but the system won't let me actually increase the amount of the payment as a single entry. I tried that first time last fall and ended up contacting the dealer and Southeast Toyota Finance to get those instructions to send the extra check for principal only. It does reduce the total interest versus 36 actual payments from what I'm told. It has to since they have a smaller account balance to apply a finance charge to

 

12% year over year would be pretty amazing. BUT still I wish someone would have shown me an investment calculator when I was young, maybe I would have done things different. Perhaps not, either way this is sound advice invest early so you don’t have to invest big later, time is what you need when it comes to compound interest. (I’m 41 BTW)

 

This is actually a great thread! I hope some of the younger members here are paying attention, as the power of compounding interest cannot be fully realized if you start saving and investing later in life. But if you start early (say age 20) and contribute faithfully to a retirement savings vehicle (IRAs, 401Ks, etc), that's where the power lies! Don't take my word for it, find any financial calculator and put in an early savings start date and see where you land 30 years later. Then run it again with you starting saving 10 years later. The difference in portfolio balances at age 60 will astound you!

Work hard and enjoy your money! But be smart and start saving for your later years early!

 

My quoting you was in agreement to your post that Dave is good, but not the end all be all. I wasn’t lumping you in with them.

 

Tough part is getting that 20yr old to invest that $800 month. 55 right around the corner form me then it’s beach time.

 

$0 down, 30yr term @69.696969% apr...

 

84 months @5%






I kid. It’s 4.5%

 

Well said. If I remember correctly. $100/month for 40yrs(age 20-60)average 10% is like 2.6 million start at 30(30-60)and it’s like 700k. Yes hopefully this generation of “got to have now kids” learn.

 

Yep. I agree. At 20 I was doing it all wrong. Luckily I learned and had the ability to make up for it. But boy had I started at 20 WOW!!!

 

Bought last April. Out $21,000 down in the form of my trade which was paid off.

60 months at 0% interest. I could pay it early but there is no reason to.

 

Leased a 2021 Trd Off road @ $1500 down. $289/month. 15k miles/year

 

Call me evil but i like to watch his pod cast just to hear the stupid things people that call in say they did then ask him how to fix.

 

Got in at the 0%/60 madness. Didn't absolutely need the truck but it's damn useful vs carrying supplies for various home stuff in my old sedan.

 

My company puts in 4% whether we contribute or not, which seems extremely generous to me.

 

I financed my 18 for 60 months at 1.9%. Could have paid cash but would have been silly to do so since I'm getting about 17% on the money that would have gone to pay for the Tacoma.